Zealand Pharma reports 11.6% weight loss in dapiglutide trial

COPENHAGEN - Zealand Pharma A/S (Nasdaq: ZEAL), a $4.2 billion biotech company currently trading near its 52-week low of $56.85, announced Wednesday that its GLP-1/GLP-2 receptor dual agonist dapiglutide achieved a mean body weight reduction of 11.6% after 28 weeks of treatment in a Phase 1b trial, compared to 0.2% in the placebo group. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.

The trial involved 30 participants who were predominantly male (93%) with a median baseline BMI of 28.8 kg/m² and median body weight of 91.9 kg. Participants received weekly doses of either dapiglutide escalated up to 26 mg or placebo without lifestyle modifications such as diet or exercise.

According to the company, the treatment was assessed as safe and well-tolerated with no severe or serious treatment-emergent adverse events reported. Most adverse events were mild, with gastrointestinal issues like nausea and vomiting being most common. Two participants withdrew due to adverse events, one related to gastrointestinal effects.

"We are very encouraged by the impressive weight loss with dapiglutide after 28 weeks that appears on par with the most efficacious once-weekly GLP-1 receptor agonist-based therapy on the market today," said David Kendall, Chief Medical Officer of Zealand Pharma, in the press release.

Dapiglutide is described as a potentially first-in-class peptide designed to leverage GLP-1 receptor agonist effects for weight loss while addressing comorbidities associated with low-grade inflammation through GLP-2 receptor activation.

This announcement follows earlier results from Part 1 of the same trial, which showed placebo-adjusted reductions in body weight of up to 8.3% after 13 weeks of treatment.

The company stated that detailed results from Part 1 of the trial will be presented at the American Diabetes Association’s 85th Scientific Sessions in Chicago on June 20, 2025. With analysts projecting revenue growth of 146.5% for fiscal year 2025 and maintaining a strong buy consensus, Zealand Pharma shows promising potential. Get deeper insights into Zealand Pharma’s financial health and growth prospects with a comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Zealand Pharma reported a revenue of 8 million DKK for Q1 2025, largely attributed to its Segalog license agreement with Novo Nordisk. The company anticipates a substantial $1.4 billion upfront payment from a collaboration with Roche in Q2 2025, which is expected to significantly bolster its cash position. Cantor Fitzgerald reaffirmed its Overweight rating on Zealand Pharma, suggesting a potential stock increase based on anticipated sales of petrelintide, a promising obesity treatment. The firm estimates the drug could achieve peak sales exceeding $5 billion, highlighting a positive outlook for Zealand Pharma’s growth prospects.

Conversely, Deutsche Bank adjusted its price target for Zealand Pharma, lowering it to DKK485 while maintaining a Hold rating. The bank noted that the company’s Q1 financial results were in line with expectations, and operating expenses for FY25 are projected to remain stable. Additionally, Zealand Pharma’s development updates included minor delays in dapiglutide and survodutide, though these are not expected to materially impact timelines. The company is also advancing with strategic collaborations and trials, aiming to strengthen its position in the competitive obesity treatment market. Despite challenges, Zealand Pharma remains optimistic about its future, underscored by its strategic initiatives and robust pipeline.

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