Roche Bets $5.3 Billion on Obesity Market’s Shifting Goalposts

Roche Holding AG’s $5.3 billion obesity tie-up with Zealand Pharma A/S underscores the industry’s latest bet: that drugs with fewer side effects can compete against those that deliver more extreme weight loss.

The Swiss drugmaker agreed on a record upfront payment for an obesity licensing deal — $1.65 billion — for Zealand’s petrelintide, based on its potential gentler path for patients. It’s part of a push for next-generation drugs that cause less vomiting, or target fat over muscle — even if they don’t pare the most pounds.

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