Zealand Pharma expands capital with new shares

Published 20/03/2025, 17:06
Zealand Pharma expands capital with new shares

COPENHAGEN - Zealand Pharma A/S (NASDAQ:ZEAL), a Danish biotechnology firm with a market capitalization of $5.8 billion, has announced a nominal increase to its share capital following the exercise of employee warrants. The capital boost involves the addition of 27,425 new shares, each with a nominal value of DKK 1, resulting from warrant programs aimed at incentivizing the company’s workforce. According to InvestingPro analysis, the company maintains a FAIR financial health score, suggesting stable operational fundamentals.

The exercised warrants were part of two distinct programs, with prices set at DKK 224.40 per share for 7,917 shares and DKK 90.70 per share for 19,508 shares, leading to total proceeds of DKK 3,545,950.40. These new shares are slated to be traded on Nasdaq Copenhagen once officially registered with the Danish Business Authority.

Upon completion of the capital increase, Zealand Pharma’s share capital will stand at DKK 71,051,296, divided into the same number of shares and votes. The new shares will entitle holders to dividends and other shareholder rights from the time of their warrant exercise notice. With a current ratio of 21.14, InvestingPro data indicates the company maintains exceptional liquidity strength, positioning it well for future growth.

This move is part of Zealand Pharma’s broader strategy to drive growth and development within the biotech industry. The company, known for its focus on peptide-based medicines, has a portfolio that includes marketed products and several late-stage development candidates. InvestingPro forecasts suggest strong potential ahead, with revenue expected to grow by 29.4% in FY2025. Discover more detailed insights and growth metrics with InvestingPro’s comprehensive research reports, available for over 1,400 US-listed companies.

The new shares will be issued in accordance with the company’s Articles of Association, which can be accessed on the Zealand Pharma website. This capital increase is based on a press release statement from the company, providing a factual update on Zealand Pharma’s share capital status and its ongoing incentives for employee investment in the company’s growth.

In other recent news, Zealand Pharma A/S has reported its full-year 2024 revenue at DKK 63 million, with substantial investments in research and development, particularly in obesity treatments. The company ended the year with a strong cash position of DKK 9 billion, highlighting its financial stability. Zealand Pharma’s strategic focus is on developing innovative obesity treatments, with three significant assets currently in development. The company has provided guidance for 2025, anticipating operating expenses between DKK 2.0 billion and DKK 2.5 billion, as it continues to invest in obesity and inflammation research.

In addition, William Blair has initiated coverage on Zealand Pharma with a Market Perform rating, acknowledging the potential of its lead drug candidate, petrelintide, in the obesity market. The firm noted the drug’s unique mechanism of action and potential advantages over existing treatments. Zealand Pharma’s collaboration with Boehringer Ingelheim on survodutide for obesity is expected to offer a more immediate revenue source. These developments underscore Zealand Pharma’s commitment to advancing its portfolio in the obesity treatment market, which is becoming increasingly competitive.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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