March 2017

Zealand factsheet Zealand Pharma A/S Based in Denmark – home to a world-leading healthcare industry.

– and the country with the largest commercial drug development pipeline in Europe, according to investindk.com.

Founded in 1998 We are a Danish biotech company discovering and to design and develop -based developing novel peptidebased medicines. medicines.

We are passionate about improving patients’ lives and committed to delivering value for all our stakeholders. Listed on Nasdaq Copenhagen: ZEAL We intend to be a world leader in medicines focusing on specialty gastrointestinal and metabolic diseases. Senior Management Britt Meelby Jensen President and CEO Mats Blom SVP and CFO Zealand Pharma A/S Adam Steensberg SVP and CMO Company reg. no. 20045078 Andrew Parker SVP and CSO About Strategy and partnerships Pipeline Corporate matters Financial statements

In brief

Branded products in care commercialized by Disease focus under an exclusive worldwide license Zealand discovers and develops novel peptide-based medicines focusing on specialty gastrointestinal and metabolic diseases is marketed as Adlyxin® in the U.S. and Soliqua™ 100/33 is a combination of lixisenatide and Lantus® is approved as Lyxumia® in more than 60 countries and is marketed by Sanofi in the U.S. The product was worldwide and marketed in over 40 of these by Sanofi. approved as Suliqua™ in the EU in January 2017. Suliqua™ Commercial launches include most EU countries, Japan, will be delivered in two pre-filled SoloSTAR® pens, providing Brazil, Mexico and India. different dosing options. Gastrointestinal (GI) diseases

Zealand is building on its experience with Product pipeline glepaglutide to further exploit its peptide platform and develop additional therapies 3 fully owned product 3 product candidates addressing patient needs in GI diseases. candidates in Phase 2 in partnerships

• Glepaglutide* for short bowel syndrome (SBS) • Elsiglutide for chemotherapy-induced diarrhea • * for acute, severe • A dual GLP1-GLU for obesity/ Metabolic diseases • Dasiglucagon* for care • An undisclosed target for obesity/type 2 diabetes Zealand has already had considerable success in developing novel treatments for metabolic diseases, with two products on Scientific focus and platform the market with our partner Sanofi providing benefit to diabetes patients. Our pipeline includes dasiglucagon, which completed a successful Phase 2 study in 2016, as well as Drug discovery two programs with Boehringer Ingelheim.

We invent and develop medicines focusing on Zealand has a successful 18-year history of discovering specialty gastrointestinal and metabolic diseases. and optimizing peptide therapeutics as novel drugs.

* Glepaglutide and dasiglucagon are proposed International Nonproprietary Names (pINN). Read more about Zealand on our website

Zealand Pharma A/S Zealand Pharma A/S Annual Report 2016 Factsheet – March 2017 2 Management review About Strategy and partnerships Pipeline Corporate matters Financial statements

Product pipeline

Clinical pipeline and preclinical partnered programs

Compound Indication Development stage 2017 milestone Intended product Unmet needs

Preclinical Phase 1 Phase 2 Phase 3 Registration

Glepaglutide*,1 Short bowel Phase 2 Phase 2 results Repeat-use • Reduce parenteral support syndrome injection pen • Reduce diarrhea/stoma output • Improve quality of life

Dasiglucagon*,1 Acute, severe Phase 2 Phase 3 initiation Ready-to-use • Easy-to-use rescue treatment hypoglycemia hypo pen • Faster recovery ( shock) • Less fear of insulin treatment

Pump-based Phase 2a Phase 2a results Component of a • Achieve glycemic target with diabetes dual-hormone lower risk of hypoglycemia management artificial pancreas • Easier diabetes care

Elsiglutide2 Chemotherapy- Phase 2 New Phase 2 trials Injection • No effective treatment available induced diarrhea • Prevent chemotherapy-induced diarrhea

GLP1-GLU3 Obesity/type 2 Preclinical Phase 1 initiation Once-weekly • Metabolic control diabetes injection pen

Undisclosed3 Obesity/type 2 Preclinical Phase 1 initiation Undisclosed • Metabolic control diabetes

* Glepaglutide and dasiglucagon are proposed International Nonproprietary Names (pINN). Read about our disease focus on our website 1 Fully owned by Zealand. 2 Global development and commercial rights are owned by Helsinn. Read about marketed products on our website 3 Global development and commercial rights are owned by Boehringer Ingelheim.

Zealand Pharma A/S Zealand Pharma A/S Annual Report 2016 Factsheet – March 2017 3 Management review About Strategy and partnerships Pipeline Corporate matters Financial statements

Financials

2016 year-end cash position 2012-2016 revenue 2016 revenue Our approach

DKKm DKKm Lyxumia® We build for success by maintaining a lean royalties 20 and agile organization and by partnering

200 with the best in their fields, leading to greater efficiency and better results. 642 10 235 100 We have a history of successful outlicensing partnerships. Going forward, we will engage 0 in partnerships across all stages of the value Restricted Cash and cash Milestone 0 cash equivalents payments chain, but we will retain greater control and profitability.

Read our Annual report 2016 on our website In 2016, we partnered with high-quality device and drug manufacturers and leading centers and hospitals to run our clinical development.

Financial calendar 2017 2017 financial guidance Core data for the share

Date Event DKKm 2017 guidance How we work April 5 Annual General Meeting Milestone revenue 100 Number of shares, end of 2016 26,142,365 May 17 Interim report for Q1 2017 Net operating expenses¹ 390-410 Listing Nasdaq Copenhagen We have strengthened our organization with Aug. 24 Interim report for H1 2017 Operating loss before Ticker symbol ZEAL competencies enabling us to advance our royalty income/expenses 290-310 Nov. 8 Interim report for Q3 2017 Index membership OMX Copenhagen Midcap product candidates through to registration and we will continue to expand our ¹ Net operating expenses consist of research, development and administrative expenses less operating income. organization with relevant skills to fulfill our ambition, while maintaining our agility and leanness. For more information on Investor Relations

Mats Blom Senior Vice President, Chief Financial Officer

[email protected] Zealand Pharma A/S zealandpharma.com Smedeland 36 DK-2600 Glostrup

Zealand Pharma A/S Zealand Pharma A/S Annual Report 2016 Factsheet – March 2017 4 Management review About Strategy and partnerships Pipeline Corporate matters Financial statements

Value creation

Pipeline projects: full control and value retained by Zealand Partnered products and projects: revenue model

Glepaglutide* Dasiglucagon* Partner/product Milestone payments Royalties

Received Outstanding % of global sales Target indication Target indication Target indication Short bowel syndrome Severe hypoglycemia Dual-hormone artificial (SBS) pancreas USD Adlyxin®/Lyxumia® 135m 100m Low double-digit Phase 2 recruitment Phase 2 results available Phase 2a ongoing Soliqua™ 100/33/ completed Suliqua™ USD > 0.5bn market USD > 0.5bn market USD > 3bn market potential assuming potential assuming potential assuming 30% current treatment market expansion due to of U.S. type 1 diabetes paradigm improved offering patients use in a EUR pump Elsiglutide 16m 124m High single- to low double-digit 20,000-40,000 SBS 1.25m type 1 diabetes 1.25m type 1 diabetes patients in the U.S. and patients in the U.S. patients in the U.S., of the EU have the highest risk of which 35%³ on insulin severe hypoglycemia pumps (growing) 2016 sales of GLP-2 EUR SBS treatment, 2016 sales in the U.S. Dual-hormone artificial Glucagon/ 21m 365m High single- to , of of USD 314m². Market pancreas with glucagon, GLP low double-digit USD 219.4m¹ (55% currently under- with the potential to growth) – treating less penetrated (less than offer better blood EUR than 1,000 patients 25% of at-risk patients) glucose control Undisclosed 8m 287m High single- to target low double-digit

DKK Read about our strategy on our website Total outstanding 6.5bn milestones

* Glepaglutide and dasiglucagon are proposed International Nonproprietary Names (pINN). 1 Shire 2016 full-year report and Zealand estimate. 2 IMS Health data and Zealand estimate. 3 Consultation response MT 11 ToR – Juvenile Diabetes Research Foundation PDF and Zealand estimate.

Zealand Pharma A/S Zealand Pharma A/S Annual Report 2016 Factsheet – March 2017 5 Management review