Alexion and Zealand Pharma Announce Collaboration to Discover and Develop Peptide Therapies for Complement-Mediated Diseases

BOSTON & COPENHAGEN, Denmark–(BUSINESS WIRE)–Alexion
Pharmaceuticals, Inc. (NASDAQ:ALXN) and Zealand
Pharma A/S (NASDAQ:ZEAL) today announced a collaboration to discover
and develop novel peptide therapies for complement-mediated diseases.
Peptides offer a number of advantages, including being highly selective
and potent, allowing low dosage volumes for ease of administration, and
having the potential to treat a broad range of complement-mediated
diseases. The agreement provides Alexion with exclusive worldwide
licenses, as well as development and commercial rights, for up to four
targets within the complement pathway.

“We know that uncontrolled activation of the complement pathway is
responsible for many devastating diseases, and through the development
of the first two complement inhibitors – SOLIRIS and ULTOMIRIS – we have
shown the transformative impact of C5 inhibition on several of these
diseases,” said John Orloff, M.D., Executive Vice President and Head of
Research & Development at Alexion. “We are excited by the potential to
explore different targets in the complement pathway and look forward to
building on Alexion’s more than 20 years of complement expertise with
the development of next-generation peptide therapies in collaboration
with Zealand Pharma, which may provide the opportunity to treat many
additional diseases.”

“Collaborating with Alexion is further evidence of the strength of our
peptide discovery platform, which has delivered both approved novel
peptide-based therapeutics and a deep late-stage pipeline,” said Adam
Steensberg, Interim CEO and Chief Medical and Development Officer at
Zealand. “We believe that peptide-based therapies hold great promise in
inhibiting complement activation. Alexion’s demonstrated expertise in
treating rare and complement-mediated diseases makes this the ideal
collaboration to advance Zealand’s complement-focused peptide programs.”

Under the terms of the agreement, Alexion and Zealand will enter into an
exclusive collaboration for the discovery and development of
subcutaneously delivered peptide therapies directed to up to four
complement pathway targets. Zealand will lead the joint discovery and
research efforts through the preclinical stage, and Alexion will lead
development efforts beginning with IND filing and Phase 1 studies. The
agreement provides Alexion with exclusive worldwide licenses and
commercial rights to the peptide therapies developed in the
collaboration. Zealand will receive an immediate upfront payment of $25
million for the first target, with Alexion making a concurrent $15
million equity investment in Zealand Pharma at a premium to the market
price as of the collaboration effective date. For the lead target, the
agreement provides the potential for development-related milestones of
up to $115 million, as well as up to $495 million in sales-related
milestones and the potential for high single- to low double-digit
royalty payments. Each of the three subsequent targets can be selected
for an option fee of $15 million and has the potential for additional
development milestones and sales milestones and royalty payments at a
reduced price to the lead target.

Alexion will discuss the collaboration further during today’s Investor
Day event and webcast. Zealand will host a conference call on Thursday,
March 21, at 4 p.m. CET.