Introduction & Market Context
Gubra AS (NASDAQ COPENHAGEN:GUBRA) presented its first quarter 2025 results on May 9, highlighting a transformative partnership with AbbVie (NYSE:ABBV) and progress in its innovative obesity treatment pipeline. The Danish biotech company, which has grown its revenue by approximately 30% annually since its founding in 2008, is positioning itself as a specialized player in the highly competitive obesity treatment market.
The company’s stock rose 2.08% following the presentation, trading at 393 DKK, though it remains well below its 52-week high of 754 DKK. The market appears to be responding positively to Gubra’s strategic shift toward high-value partnerships and proprietary drug development, despite some softness in its contract research organization (CRO) business.
Executive Summary
Gubra’s first quarter was defined by the landmark exclusive global license agreement with AbbVie for GUBamy, a long-acting amylin analogue for obesity treatment. The deal, which closed on April 1, 2025, includes a substantial $350 million upfront payment and potential milestone payments totaling $1.875 billion, plus tiered royalties on global sales.
As shown in the following slide detailing the partnership terms:
The company also reported promising clinical results for GUBamy, with Phase 1 Multiple Ascending Dose (MAD) Part A study showing significant weight reduction of 7.77% compared to a 1.99% weight gain in the placebo group. These results support further development of the compound as a potential weight management therapy.
Beyond GUBamy, Gubra highlighted progress with its UCN2 program, which aims to deliver "quality weight loss" by preserving lean muscle mass – a key differentiator in the increasingly crowded obesity treatment landscape.
The following slide summarizes the key operational highlights:
Strategic Initiatives
Gubra’s R&D pipeline demonstrates the company’s dual strategy of developing proprietary compounds and forming strategic partnerships with major pharmaceutical companies. The pipeline includes multiple obesity treatments at various development stages, along with therapies for narcolepsy, hypoparathyroidism, and other conditions.
The GUBamy program, now partnered with AbbVie, showed particularly promising results in clinical testing. The Phase 1 MAD Part A study demonstrated that the compound was well-tolerated with a favorable half-life of 11 days, supporting weekly dosing. Most importantly, the study showed significant weight loss effects.
The key conclusions from the GUBamy clinical study are summarized in this slide:
Perhaps most intriguing is Gubra’s UCN2 program, which addresses a critical limitation of current obesity treatments – the loss of lean muscle mass during weight reduction. According to the presentation, UCN2 consistently increases lean mass while decreasing fat mass in preclinical models, and can reverse lean mass loss induced by GLP-1 treatments like semaglutide.
The following chart demonstrates UCN2’s ability to restore lean mass while enhancing fat loss:
The company has initiated GMP production of UCN2 API and is conducting non-clinical toxicity studies, with Phase 1 clinical trials expected to begin in early 2026. This timeline positions UCN2 as a mid-term growth driver for Gubra, complementing the near-term value created by the AbbVie partnership.
Quarterly Performance Highlights
Gubra reported Q1 2025 revenue of DKK 7 million, representing a 7% year-over-year increase. However, this figure does not include the $350 million (approximately DKK 2.4 billion) upfront payment from AbbVie, which was received in Q2 and therefore not recognized in Q1 accounts.
The company’s CRO business, which provides specialized pre-clinical contract research services to pharmaceutical companies, experienced a 14% year-over-year decline in Q1, with revenue falling to DKK 51 million from DKK 59 million in Q1 2024. More concerning was the sharp drop in CRO adjusted EBIT margin, which fell from 39% to 21%.
Management attributed the CRO slowdown to longer decision times from US-based companies but noted solid demand from European clients. Despite these challenges, Gubra maintains that 16 out of the top 20 global pharmaceutical companies are current or past customers, underscoring the quality of its research services.
The company’s total adjusted costs increased significantly as it advanced multiple projects simultaneously, particularly GUBamy and UCN2. This investment in R&D is expected to drive future growth as these programs progress through clinical development.
Forward-Looking Statements
Despite the Q1 CRO business slowdown, Gubra maintained its full-year guidance, projecting 10-20% organic revenue growth for the CRO segment with an EBIT margin between 25-31%. For the Discovery (NASDAQ:WBD) & Partnerships segment, the company forecasts total costs of DKK 230-250 million as it continues to invest in pipeline development.
The AbbVie partnership significantly strengthens Gubra’s financial position, providing substantial funding for continued R&D investment. Management indicated they are carefully evaluating potential uses for the proceeds, which could include M&A opportunities to further expand the company’s capabilities and market presence.
Looking ahead, key milestones include:
- Completion of the GUBamy Phase 1 MAD Part B study
- Advancement of the UCN2 program toward first-in-human studies in early 2026
- Continued development of the company’s broader pipeline of peptide-based drug candidates
Gubra’s long-term strategy focuses on leveraging its expertise in peptide-based drug discovery and development, with a particular emphasis on obesity and metabolic disorders. The company’s differentiated approach to weight management, focusing on the quality rather than just quantity of weight loss, could position it favorably in the competitive obesity treatment landscape.
As the Chief Scientific Officer emphasized during the earnings call, "We believe that time has come now to focus on the quality of the weight loss and not just the quantity," highlighting Gubra’s strategic direction and potential competitive advantage in the rapidly evolving obesity treatment market.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.