Some obesity drug developers rise after Zealand Pharma-Roche deal

Shares of obesity drug developers Viking Therapeutics VKTX.O gain 10.7% to $29.37 and Structure Therapeutics GPCR.O rise 8.35% to $22.25

Swiss drugmaker Roche ROG.S has acquired rights to an obesity therapy by Denmark's Zealand Pharma ZELA.CO in a collaboration deal worth up to $5.3 billion

The agreement covering Zealand's petrelintide, signals renewed efforts by Roche to catch up with obesity market leaders Novo Nordisk NOVOb.CO and Eli Lilly LLY.N

U.S.-listed shares of Novo fall 5.16% to $74.08, LLY up marginally

Petrelintide belongs to a class of drugs known as long-acting amylin analogues, which mimic a hormone called amylin that is co-secreted with insulin

The deal is further evidence of pharma's interest in entering in the obesity space, J.P.Morgan says

In the last 12 months, LLY shares have risen ~12%, VKTX has fallen ~58%, GPCR down ~42%