Zealand Pharma

Earnings Release • Feb 9, 2016

-- Royalty revenue to Zealand from Sanofi’s sales of lixisenatide (Lyxumia®)
outside the US increased to DKK 8.1 million / EUR 1.1 million in Q4 2015,
up 15% over the previous quarter and up 31% over Q4 2014
-- For the full year 2015, lixisenatide (Lyxumia®) royalty revenue amounted to
DKK 28.6 million / EUR 3.8 million
-- Three regulatory events are expected for lixisenatide in 2016:

1. EU submission of the fixed-ratio combination of lixisenatide and insulin
   glargine 100 Units/mL (LixiLan) confirmed by Sanofi for Q1
2. US regulatory decision on lixisenatide in Q3
3. US regulatory decision on the fixed-ratio combination of lixisenatide and
   insulin glargine 100 Units/mL (LixiLan) in Q3 provided FDA accepts the
   filing

Copenhagen, 9 February 2016 – Zealand reports that royalty revenue to the
company on Sanofi’s global sales of lixisenatide (Lyxumia®) for the treatment
of Type 2 diabetes outside the US amounted to DKK 8.1 million / EUR 1.1 million
for the fourth quarter period from 1 October to 31 December 2015. This
corresponds to an increase of 31% over the same period in 2014. Compared to the
third quarter of 2015, royalties were up 15%, which is a significant pick-up in
the quarterly growth rate.

For the full year 2015, royalty revenue to Zealand thus totaled DKK 28.6
million / EUR 3.8 million, which corresponds to an increase of 41% over 2014.

In a comment to this announcement, Britt Meelby Jensen, President and CEO at
Zealand, said: “It is nice to see a relatively strong pick-up in our
lixisenatide royalty revenues in Q4 2015. Still, however, the revenue level
reflects the fact that the product is not yet available for patients in the US,
which represents more than 70% of the world market for this type of medicine.
We are therefore excited about the prospects of important regulatory decisions
by the US FDA on lixisenatide in Q3 this year and in particular, if the file is
accepted, on the combination product of lixisenatide and Lantus® later in the
same quarter. Pending regulatory approvals, US launch of these two products are
planned by Sanofi for H2 2016 and could lead to a considerable increase in
Zealand’s revenue.”