Generate Biomedicines and Zealand Pharma will develop AI-designed protein therapeutics for obesity and metabolic diseases under a deal with up to $1.2 billion in potential milestones.
Written By: Mayuresh Salvi, PharmD
Reviewed By: Pharmacally Editorial Team
Generate Biomedicines and Zealand Pharma A/S have entered a multi-target strategic collaboration and licence agreement to design and develop multispecific protein therapeutics for obesity and other metabolic diseases. The partnership combines Generate’s proprietary generative artificial intelligence (AI) platform with Zealand Pharma’s expertise in metabolic health to explore protein candidates with tailored biological functions.
Initially covering two research programmes with an option to add a third, Generate will lead research through lead-candidate selection. Zealand Pharma will subsequently assume responsibility for clinical development, regulatory submissions, and worldwide commercialisation.
Zealand Pharma Expands into Protein Therapeutics
The collaboration broadens Zealand Pharma’s therapeutic capabilities by adding protein therapeutics to its existing small-molecule and peptide modalities. The company aims to explore additional approaches to metabolic disease treatment by investigating proteins designed to deliver specific biological functions.
The programmes will focus on multispecific proteins engineered to engage multiple biological targets or pathways. By combining different biological activities within a single molecule, this polypharmacology approach allows researchers to address more than one disease-related pathway simultaneously.
However, the companies have not disclosed the specific biological targets, mechanisms of action, or molecular designs planned for the initial programmes. The announcement establishes the intended research direction but does not demonstrate that any candidate has achieved a particular therapeutic effect.
Utpal Singh, chief scientific officer at Zealand Pharma, stated that the collaboration expands the company’s therapeutic toolkit and opens additional approaches to polypharmacology, while integrating Zealand Pharma’s metabolic expertise in Copenhagen with its multidisciplinary capabilities in Cambridge, Massachusetts.
Generative AI Combined with Experimental Validation
Generate will utilize its proprietary Generate Platform, which integrates generative AI and computational protein design with high-throughput experimental validation, allowing researchers to continuously refine designs using experimental data.
For each of the initial programmes, the companies will first define the desired target profile. Generate will then design multispecific candidates intended to meet or exceed those requirements.
Experimental data will help assess whether designed proteins demonstrate intended biological functions and guide further optimization. However, the announcement does not specify the assays, biological targets, or detailed candidate-selection criteria that will be used in either programme.
Mike Nally, chief executive officer of Generate Biomedicines, noted that the partnership combines Zealand Pharma’s expertise in peptide therapeutics and metabolic disease with Generate’s computational platform and experimental capabilities to address unmet medical needs in cardiometabolic disease.
Because the companies have not reported programme-specific preclinical efficacy results, safety findings, or clinical outcomes, the therapeutic potential of the candidates remains to be established.
Financial Structure: Upfront Payments, Milestones, and Royalties
Under the financial terms, Generate will receive an upfront payment of $30 million and is eligible for up to $35 million in early preclinical milestone payments across the two initial programmes.
Generate may also receive total development, regulatory, and commercial milestone payments of nearly $1.2 billion, alongside tiered royalties on future worldwide net sales of products commercialised under the collaboration.
These payments depend on achieving specified milestones and future product sales; the potential milestone value is not guaranteed revenue and does not establish the likelihood of clinical or commercial success.
Next Steps in Metabolic Disease Research
For Zealand Pharma, the agreement provides an opportunity to explore protein therapeutics alongside its established capabilities. For Generate, it extends the application of its generative biology platform into obesity and other metabolic diseases.
The initial programmes must progress through candidate selection and preclinical evaluation before clinical studies can establish safety and efficacy in humans. Clinical trial initiation dates, development timelines, and anticipated regulatory submission dates have not yet been disclosed.
The partnership’s ultimate significance will depend on whether Generate’s computational design and experimental validation approach produces candidates with suitable biological activity, safety, and development potential.
Reference
Generate Biomedicines and Zealand Pharma Enter Collaboration and License Agreement to Develop Protein Therapeutics Engineered with AI for Metabolic Diseases, Generate Biomedicines, 13 October 2026
About the Writer
Mayuresh Sunil Salvi (Linkedin) is a PharmD professional and healthcare writer with a strong interest in pharmacovigilance, drug safety, and emerging medical research. He is passionate about exploring new drug discoveries, clinical research, and advances in evidence-based medicine. His interests also include ward rounds, prescription audits, and treatment analysis to support rational pharmacotherapy and improved patient care