Chinese biotechnology company OTR Therapeutics announced on Thursday that it has signed a multi-programme strategic collaboration and licence agreement with Zealand Pharma A/S (CPH:ZEAL), a Danish biotechnology company focused on metabolic health.

Working together, the two companies aim to co-discover and co-develop innovative therapies for multiple targets in metabolic diseases.

Under the terms of the agreement, OTR Therapeutics will leverage its proprietary discovery platform to lead and conduct research and preclinical development. Zealand Pharma will assume responsibility for clinical development, regulatory submissions, and commercialisation worldwide.

OTR Therapeutics will receive an initial upfront payment of USD20m, which may increase to USD30m under certain pre-agreed conditions, and is eligible for potential pre-specified preclinical, development, regulatory, and commercial milestone payments. The potential total consideration is up to USD2.5bn, with the majority representing commercial milestones. OTR Therapeutics is also eligible to receive tiered single-digit royalties on worldwide net sales of any commercialised products resulting from the collaboration.