Zealand Pharma, Protagonist partner to develop novel disulfide-rich peptides

Zealand Pharma A/S (NASDAQ OMX Copenhagen: ZEAL), a Danish biotechnology company dedicated to the discovery and development of novel peptide drugs, has signed a collaboration agreement with Protagonist Therapeutics, Inc., a privately-owned US incorporated biotechnology company. Under the agreement, Zealand Pharma and Protagonist will join forces to identify, optimize and develop novel disulfide-rich peptides (DRPs) with the therapeutic potential to offer better treatment for patients in defined, non-disclosed disease areas.

“This agreement is an embodiment of Zealand Pharma's strategy to remain at the forefront of peptide drug innovation, partly through R&D alliances. We look forward to working with Protagonist with the objective of generating new and attractive pipeline opportunities for Zealand Pharma and improved treatments for patients.”

Protagonist brings to the collaboration a validated and proprietary technology platform for the discovery and optimization of novel DRPs (disulfide rich peptides). Besides potent biological activity, DRPs are characterized by inherent stabilizing properties which lead to improved pharmacokinetic profiles. Zealand Pharma has identified the disease targets for the peptide drug discovery activities covered by the collaboration and will be responsible for preclinical and clinical drug development of DRPs, discovered under the collaboration.

Zealand Pharma will finance all activities under the agreement and will retain all rights to novel DRP drug candidates stemming from the collaboration. Protagonist will receive an undisclosed upfront payment and will be entitled to receive additional payments dependent upon the successful achievement of pre-defined discovery and development milestones as well as on Zealand Pharma's product sales and revenues from partnering agreements. In addition, Protagonist has been granted an option to co-finance Zealand Pharma's development of DRP drug candidates.

"Protagonist has developed a proprietary peptide technology platform with unique attributes that complements and leverages our internal peptide drug discovery and development capabilities," said Christian Grøndahl, Chief Scientific Officer of Zealand Pharma. "This agreement is an embodiment of Zealand Pharma's strategy to remain at the forefront of peptide drug innovation, partly through R&D alliances. We look forward to working with Protagonist with the objective of generating new and attractive pipeline opportunities for Zealand Pharma and improved treatments for patients."

"Zealand Pharma has an impressive track record of developing peptide based NCEs (new chemical entities) and we look forward to applying our unique technology platform to their specific research objectives," said Dinesh V. Patel, President and CEO of Protagonist Therapeutics. "This is Protagonist's second collaboration and it exemplifies our business model of creating a balancing act between limited strategic partnerships and internal R&D. Peptides offer exceptional therapeutic opportunities not fully realized by conventional small molecule or antibodies against certain biological targets, and we are well positioned to capitalize on this opportunity."