Zealand Pharma A/S Conference Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Novod - Nordea Markets - Analyst : Thank you very much. It's Michael Novod from Nordea. So I rarely say congratulations on conference calls, but I guess, this time, it's appropriate. So congrats with an impressive deal. A few questions. So first of all, can you elaborate a bit on sort of how you view the cost in running a global Phase 3 program? Should we assume for modeling purposes that it's the standard $1 billion to $2 billion that then needs to be split between Roche and Zealand? And then also on the approach to commercialization, you do say that you have opt-in and opt-out rights. Where are you right now in terms of what we should assume as the base case around commercialization? Because, I guess, if you also -- if you decide to fully opt in, wouldn't it also make sense then that you do glepaglutide alone because you already then have to do some investments, so keeping the rights for your GLP-2 as well in short bowel? And then lastly, on the combination, good to see that you're starting the combination trial already in 2026. Does that also mean that we should not expect that you will do exploratory work on other GLP combinations? Thanks a lot.

Question: Michael Novod - Nordea Markets - Analyst : Thanks a lot.

Question: Suzanne van Voorthuizen - Van Lanschot Kempen N.V. - Analyst : Suzanne from Kempen. Congrats on the deal, and thanks for taking my questions. First, can you elaborate a bit more on the competitiveness of the process and the main drivers for the deal to come together now versus later in the year since with your earnings update, the signals appeared more conservative on the potential timing of the deal? Secondly, with multiple Phase 3 trials ahead, can you give context to what extent these obligations are already covered by the cash in from the deal and for the opt-in, opt-out -- well, the opt out specifically is the alternative than royalties? And will these be similar to the rest of the world royalty rate? And if you allow me to squeeze in the last one, can you provide some color on the way you and Roche will be collaborating in terms of steering committees or split from who is in the lead where -- or some color how the decision-making process is designed? Thank you.

Question: Charlie Haywood - BofA Global Research - Analyst : Charlie Haywood, Bank of America. Thank you for taking the questions, and obviously, congratulations on the news. I think you alluded to this in the CT-388 fixed-dose combo. But just wondering if you expect that fixed-dose to be more amylin-biased based on your sort of prior commentary. And then in terms of the Phase 2 combo trial, could you look at multiple fixed doses within that, with different proportions of amylin to GLP-1 to assess that? And could you also move that strategy forward to Phase 3 with the different proportions? And then second question, how should we think of your timeline for planned Phase 3 starts for mono and combo? And given we've seen Roche fairly keen to expedite obesity asset development, do you see any potential for an earlier monotherapy Phase 3 start? Thank you.

Question: Charlie Haywood - BofA Global Research - Analyst : Thank you, guys.

Question: Benjamin Jackson - Jefferies LLC - Analyst : Great. Thank you for the question. It's Ben Jackson at Jefferies. Just two very brief questions, I guess. First, if we think about the data in obese type 2 diabetics that we saw recently from a peer, are you able to chat about what you think the key learnings are from those headlines? Obviously, very limited at this stage, but is there anything that you'd want to comment or flag on there? And then secondly, with regards to the deal timing, perhaps a little bit earlier than anticipated, is there any ability to accelerate this beyond what you were initially believing that you could? Or are timings are very much the same with an internal interim read at the second half of the year, followed by potential primary completion over in the first half of next year? Any thoughts or color around that would be fantastic. Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Benjamin Jackson - Jefferies LLC - Analyst : Many thanks.

Question: Hen Boeg - Deutsche Bank - Analyst : Hi, thank you for taking my questions, and thank you for the call. I know you said you weren't guiding to any cost for Phase 3. But if you could give us any sort of expectations of cost towards clinical development over the next couple of years, that would be helpful. And then second question would be, I guess, you're starting the Phase 2b in 2026. So when could we expect to see the first data of the combo trial? Thank you.

Question: Hen Boeg - Deutsche Bank - Analyst : Thank you.

Question: Jacob Mekhael - KBC Securities - Analyst : Hi there, and thanks for taking my question. And congrats on this very nice deal. I have a few, if I may. The first one is based on the large deal size, can you please elaborate on some of the reasons or key selling points which led Roche to opt for petrelintide over other amylins being developed? And then I have one on the commercial rights. Now that you've secured 50% and you have that potential route to go through, which commercial models do you think would be a good fit for Zealand? And one more I have. Based on your conversations with Roche, how much interest is there from them to do additional deals? And could they have interest in, for example, going for dapiglutide further down the line?

Question: Jacob Mekhael - KBC Securities - Analyst : Thank you.

Question: Prakhar Agrawal - Cantor Fitzgerald - Analyst : Hi. Thank you for taking my questions, and congrats on the deal. So maybe firstly, obviously, Adam, you have talked about potential for amylin as a monotherapy. But now after running the process and as part of the collaboration, where does Roche and pharma companies see amylin monotherapy fitting in relative to GLP-1s or GLP-1/GIP monotherapy? Is there anything new that you learned based on these discussions over the last few months regarding amylin monotherapy and its positioning in this competitive space? And just as a quick follow-up, maybe how much of the deal value or consideration was for monotherapy versus future combinations? And lastly, a quick clarification. I think the press release also mentioned other products arising from the collaboration, including next-generation petrelintide combo. So maybe if you can clarify what products or targets are part of this, and where are they in development? Thank you so much, and congrats again.

Question: Laura Hindley - Morgan Stanley - Analyst : Hi, thanks for taking my question. Laura Hindley from Morgan Stanley. Congratulations on the deal. Firstly, can you just remind us of the latest IP

Question: Laura Hindley - Morgan Stanley - Analyst : Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Alexandra Ramsey - William Blair & Company, L.L.C. - Analyst : Hello, thanks so much for taking our question, and congratulations on the great deal. So regarding the combination with CT-388, we were wondering if you could share with us your view on sort of weighing the pros and cons of co-formulation as mentioned in the press release and designing a bifunctional molecule, something like incretin. Thanks.

Question: Thomas Bowers - SEB Equities - Analyst : Yes, thank you very much, and congratulations on a great deal here. So I have three questions remaining. So just to kick off with the CapEx, I understand that Roche will cover all that for API. But is there anything in relation to the deal that make you have to pay a plus on the COGS to cover part of the investments done by Roche? And then just on the royalty for rest of world and maybe also just to confirm in regards to the co-promo, is there anything that relates to patent expiration regarding the tail of the income globally or just for the rest of world? So I'm just wondering if there's something that we should be aware of, for example, after the composition of matter patent expires in '37. And then just lastly, just to confirm, is there anything regarding the combination with 388 that should argue against that you could -- potentially not be able to make this as a premixed combination solution? Thank you.

Question: Thomas Bowers - SEB Equities - Analyst : Okay, so nothing that protects after '37?

Question: Thomas Bowers - SEB Equities - Analyst : Okay, with the same terms. Okay, thank you.