Yahoo Finance Zealand Pharma soars after positive trial results from weight loss drug
Investing.com - Shares in Danish biotech Zealand Pharma (NASDAQ:ZEAL) soared Friday after the announcement of positive results from an early-stage study of its weight loss drug candidate.
At 10:00 ET (14:00 GMT), Zealand Pharma stock traded over 17% higher at DKK758, having doubled year-to-date.
Zealand Pharma said late Thursday that a course of 16 weekly high doses of long-acting amylin analog petrelintide reduced body weight by up to 8.6% on average in the study. A placebo drug led to a body weight decrease of 1.7%.
One out of 48 study participants withdrew due to negative effects.
Petrelintide was “judged to be safe and well tolerated at all dose levels,” and the results provided “robust support” for its potential as an alternative to GLP-1 receptor agonist-based therapies for weight management, Zealand Pharma said in a release.
“16-week amylin weight loss of 8.6% hits the upper-end of the 7%-9% bar, suggesting potential for ≥15% in longer trials,” analysts at Jefferies said in a note.
“Plus, a high 80% proportion of males and low baseline BMI may suggest weight loss could further improve. Importantly, tolerability is impressive despite one discontinuation in our view, supporting a possible role for amylin as a more tolerable alternative to GLP-1s,” the bank added.
Jefferies forecast $10 billion peak sales at 50% probability for DKK235/share net present value.
It keeps a ‘buy’ rating, with a DKK790 price target.
Analysts at BTIG were also impressed, saying the “data further reinforce petrelintide's best-in-class potential as an amylin analog in obesity.”
Zealand has outperformed year-to-date, BTIG said, “and we see additional room for upside through several data catalysts later in 2024. The company’s obesity pipeline spans incretins with best-in-class features and an amylin analog that we believe could emerge as a preferred next-generation treatment option.”
BTIG also maintained a ‘buy’ rating, with a DKK840 price target.
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