Zealand Pharma to invest up to $1.2 billion in Generate’s AI platform for obesity drug development

Zealand Pharma announced a partnership with Generate:Biomedicines to use the latter's generative‑AI platform for creating new multispecific drug candidates aimed at obesity and metabolic disorders.

The agreement includes an upfront payment of $30 million and potential early preclinical milestones of up to $35 million. Generate could earn additional milestones totalling nearly $1.2 billion, plus royalties on any product that reaches the market.

Under the deal, Generate will handle all research and candidate selection, while Zealand will be responsible for clinical development, regulatory approval, and commercialization. The collaboration highlights the growing interest in AI‑driven drug design within the biotech sector.