Zealand Pharma

Board/Management Information • Apr 5, 2016

Company announcement – No. 9 / 2016

Zealand grants new warrants under employee warrant program

Copenhagen, 5 April 2016 - Zealand announces the grant of warrants to the company's executive management, senior management and employees. The warrants are granted under the warrant program covered by the authority pursuant to Section 8.4 of Zealand's Articles of Association, adopted at Zealand's General Meeting on 21 April 2015.

The warrant program is an incentive scheme reflecting Zealand's objective to attract and retain first-rate employees and help ensure shared short and long-term interests for the management, employees and the shareholders of the company.

A total of 447,250 warrants have been granted, giving the rights to subscribe up to 447,250 new Zealand shares with a nominal value of DKK 1 each and corresponding to 1.8% of the company's total outstanding share capital. The exercise price is DKK 142.45, calculated as the closing price of Zealand's shares on Nasdaq Copenhagen on Monday 4 April 2016 plus 10%.

The exercise of the warrants may take place, in whole or in part, in defined time windows from 5 April 2019 until and including 5 April 2021. The warrants granted to President and CEO, Britt Meelby Jensen, may be exercised, in whole or in part, in defined time windows from 5 April 2017 until and including 5 April 2021. The exercise time windows for all granted warrants are defined as four weeks following the publication of Zealand's full year reports or interim reports for the first quarter, first half or first nine months, respectively.

The total number of new warrants granted has a combined market value of DKK 27,878,136.07 calculated on the basis of the Black-Scholes model including a 180 days historic volatility of 61.1%, a 5 year risk free interest rate of -0.04% and a share price of DKK 129.50.

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For further information, please contact:

Britt Meelby Jensen, President and Chief Executive Officer Tel: +45 51 67 61 28, email: bmj@zealandpharma.com

Hanne Leth Hillman, Senior Vice President, Investor Relations and Communications Tel: +45 50 60 36 89, email: hlh@zealandpharma.com

About Zealand Pharma

Zealand Pharma A/S (Nasdaq Copenhagen: ZEAL) ("Zealand") is a biotech company with leading-edge scientific expertise in turning peptides into medicines. Zealand has a growing proprietary pipeline of novel investigational medicines and a mature portfolio of products and projects under license collaborations with Sanofi, Helsinn and Boehringer Ingelheim.

The company's first invented medicine, lixisenatide, a once-daily prandial GLP-1 analogue for the treatment of Type 2 diabetes, is licensed to Sanofi who markets the product globally (ex-US) as Lyxumia® and has it under regulatory review in the US. The license agreement with Sanofi covers also LixiLan, which is the reference name for the fixed-ratio, singleproduct combination of lixisenatide and insulin glargine 100 Units/mL (Lantus® ). LixiLan is under regulatory priority review by the US FDA and Sanofi has planned for regulatory submission in the EU in Q1 2016.

Zealand's proprietary pipeline includes: ZP4207 (single-dose version) for rescue treatment of severe hypoglycemia (Phase II); ZP1848 for Short Bowel Syndrome (Phase II); ZP4207 (multiple-dose version) for better hypoglycemia management in diabetes (Phase I); ZP2929 for diabetes/obesity (Phase I); and several preclinical peptide therapeutics.

The company is based in Copenhagen (Glostrup), Denmark. For further information about Zealand's business and activities, please visit: www.zealandpharma.com or follow us on Twitter @ZealandPharma