Zealand Pharma, a Denmark-based biotechnology company, announced an exclusive peptide drug R&D collaboration with Eli Lilly.

The companies will design and develop potentially first-in-class peptide therapeutics for the treatment of type 2 diabetes and obesity based on a novel approach discovered by Lilly. The companies will share in the funding, risk and reward of the program. Future expansion of the collaboration to additional drug targets and disease areas is possible. Financial terms were not disclosed.