Boehringer Ingelheim has stepped away from the lead compound in a diabetes/obesity research alliance with Zealand Pharma, but plans to pick a new candidate from the deal's pack.
ZP2929 is a once-daily glucagon/GLP-1 dual agonist currently in Phase I development for type II diabetes and/or obesity, having been picked as the forerunner in the 2011 collaboration between the two firms.
But following a difference of opinion on how to proceed with the drug, the Danish biotech will now press on with its development independently of the German drugs giant.
Zealand and Boehringer will, however, continue their alliance with a new lead candidate, which is to be selected from the portfolio of novel glucagon/GLP-1 dual agonists and compound designs pooled under the two-year research part of the collaboration.
Financial details of the deal also remain unchanged, with payments to Zealand released by certain development, regulatory and commercial milestones for the lead drug advanced through development, as well as additional milestones if others discovered under the partnership progress through the pipeline.
The group also stands to receive tiered royalties ranging from high single to low double digits on global sales of any products under the agreement.
Boehringer is stumping up the funds for all development, manufacturing and commercial activities in return for global rights, although Zealand retains co-promotion rights in Scandinavia.