Zealand Pharma : Annual Review for 2009

COPENHAGEN, DENMARK--(Marketwire - May 06, 2010) -

Announcement no. 4, 2010

Zealand Pharma A/S

("Zealand" or "the Company")

Annual Review for 2009

Zealand Pharma A/S, the biopharmaceutical company dedicated to the discovery and development of innovative peptide-based drugs, today publishes an Annual Review for the year ending 31 December 2009. For a copy of the full annual report and accounts please go to: http://www.zealandpharma.com/pdf/2010/Annual_report_2009_05_05_10.pdf

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|Highlights                                                               |
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|* Licensing  partner sanofi-aventis initiated and completed Phase I      |
|  clinical development  with a combination of Lixisenatide (a Zealand    |
|  Pharma invented once-daily  GLP-1  agonist)  and  sanofi-aventis's     |
|  Lantus® (the world's leading insulin brand) for Type 2 diabetes        |
|* Initiation of pre-clinical trials with ZP2929 (a dual                  |
|  acting Glucagon-GLP-1 agonist) for Type-2 diabetes and obesity         |
|* Completion of Phase Ia study  with ZP1848 (a GLP-2 agonist)            |
|  for IBD (inflammatory bowel disease)                                   |
|* Initiation of a Phase Ib study with ZP1848 for Crohn's disease         |
|* Finalization of the pre-clinical development programme with ZP2307     |
|  for osteoporosis                                                       |
|* Positive data from Phase II clinical trials with ZP1480 for acute      |
|  kidney failure in cardiac surgery patients                             |
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|Post year-end highlights:                                                |
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|  * Sanofi-aventis announced positive results of the first,              |
|    placebo-controlled study of the GetGoal Phase III clinical trial     |
|    program with Lixisenatide                                            |
|  * Sanofi-aventis  announced that a Phase III program with the          |
|    combination of Lixisenatide/Lantus® is expected to commence in 2010  |
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Commenting on the Annual Review David Solomon, Chief Executive Officer and President of Zealand Pharma, said: "2009 was a pivotal year for Zealand Pharma. We focused the clinical pipeline and our research efforts to further develop new and innovative peptide-based drug candidates for the treatment of metabolic, gastrointestinal and cardiovascular diseases. As such, we reported the accomplishment of significant development milestones throughout the year and are enjoying this strong financial position. Zealand is becoming the world's leading pure-play peptide company and we are uniquely positioned with a late-stage portfolio of superior products serving disease areas of significant unmet medical need and major market potential."

Financial Update

Zealand Pharma is a biopharmaceutical company investing in its own R&D with revenues consisting of up-front payments and milestones received as part of Zealand's partnering activities. As a result of the milestone payments received in 2009 and further milestones expected in the coming year, Zealand is in a strong financial position, enabling the Company to continue the clinical development of its most advanced programs and to bring new drugs into clinical development, either from Zealand's own innovative research pipeline or more mature programs from external sources to supplement the traditional in- house development path. Zealand's strong cash position also provides the Company with a unique opportunity to pursue various strategic alliances.

Outlook

Zealand Pharma's goals and objectives are to focus on maturing the pipeline rapidly and engaging in partnerships with pharmaceutical companies. In parallel, Zealand will identify external development programmes in its core therapy areas via creative in-licensing and partnering agreements. Zealand aims to enhance company value in many ways and will continue to strengthen its expertise in its core therapy areas which include diabetes, obesity, cardiovascular and gastrointestinal diseases and metabolic organ failure. Zealand will also broaden its knowledge and capabilities in all aspects of peptide technology as it strives to become a global market leader in this field.

For further information, please contact:

Zealand Pharma A/S
David Solomon, President and Chief Executive Officer
Zealand Pharma A/S, Smedeland 36, DK-2600 Copenhagen, Denmark
T +45 4328 1200 F +45 4328 1212 Einfo@zp.dk
www.zealandpharma.com

M:Communications
Mary-Jane Elliott / Emma Thompson
Tel: +44(0) 20 7920 2300
E-mail: Zealandpharma@mcomgroup.com

Notes for Editors

About Zealand Pharma A/S

Zealand Pharma A/S is a biopharmaceutical company dedicated to the discovery and development of innovative peptide-based drugs. Zealand is a leader in peptide drug development, a growing market with significant drug development activities including treatment of diabetes, obesity, gastro-intestinal, metabolic and cardiovascular diseases. All of Zealand's products target diseases and indications with significant unmet clinical need and commercial potential. Since 1999, Zealand's scientists have built a pipeline that includes five compounds in clinical development, four of which have been out licensed, three of these to major pharmaceutical companies (sanofi-aventis, Wyeth (now Pfizer) and Helsinn Healthcare). All Zealand's compounds emerge from Zealand's own drug discovery.

* Lixisenatide (AVE0010/ZP10), a pharmaceutical agent for the treatment of T2DM, has been out-licensed to sanofi-aventis, the world's third largest pharmaceutical corporation with a strong Diabetes franchise.

* ZP2929 is a novel, potent, long-acting dual Glucagon-GLP-1 agonist aiming to provide a novel treatment option for people with T2DM and obesity. ZP2929 entered preclinical development in 2009 and has already demonstrated improved glycaemic control as well as significant and sustained body weight loss in pre-clinical pharmacology models.

* GAP-134/ZP1609, a gap junction modifier that prevents both ventricular and atrial arrhythmias in animal models. With its oral formulation, the molecule represents a novel paradigm for the prevention of chronic atrial arrhythmias. US based pharmaceutical giant Wyeth Pharmaceutical (now Pfizer) has finalized Phase I trials in the US.

* ZP1846 is an innovative treatment for prevention of chemotherapy- induced diarrhoea, which may prevent discontinuation and dose modification during cancer chemotherapy. A Phase I clinical trial has been conducted in the US. The compound has been partnered with Helsinn Healthcare SA.

* ZP1848 is a novel treatment modality for the treatment of Inflammatory Bowel Diseases (e.g. Crohn's Disease). The compound has completed Phase I clinical development in the US with positive results.

* AP214/ZP1480 for Post-surgical Organ Failure, partnered with Action Pharma, currently in clinical Phase II development.

In addition, Zealand has a rich and broad portfolio of pre-clinical projects targeting a variety of disease areas, including osteoporosis and obesity- related Diabetes.

Zealand Pharma A/S is based in Copenhagen. The Company's investors include, Sunstone Capital, Allianz Private Equity, CDC Innovation, LD Pensions, Dansk Erhvervsinvestering and LSP.

For more information please visit Zealand Pharma's web site: www.zealandpharma.com.

[HUG#1412351]

Press Release in PDF: http://hugin.info/136974/R/1412351/364584.pdf