Roche and Zealand Soar After $5.3 Billion Pact for Obesity Drugs

Roche Holding AG and Zealand Pharma A/S surged after the drugmakers teamed up in a $5.3 billion bid to challenge Novo Nordisk A/S and Eli Lilly & Co. in the booming market for obesity drugs.

The agreement to collaborate on development and commercialization of Zealand’s most promising weight-loss drug, petrelintide, includes an upfront cash payment of $1.65 billion, as well as milestone payments. The two companies said Wednesday they will also work on a combination treatment that would pair petrelintide with the lead experimental drug from Roche’s own portfolio.

Zealand’s shares soared as much as 48% in Copenhagen, the most ...