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Investing.com -- Barclays (LON:BARC) has initiated coverage on Galderma Group AG (SIX:GALD) and Zealand Pharma (NASDAQ:ZEAL) with Overweight ratings, citing distinct growth drivers and long-term value potential in both European pharmaceutical companies.
For Galderma, the analysts point to the strong commercial launch of Nemluvio, its recently approved therapy for prurigo nodularis (PN) and atopic dermatitis (AD).
Barclays highlights early signs of success in PN, estimating peak sales at $2.6 billion, well ahead of the company’s own guidance.
“Physician enthusiasm and strong initial prescription data (IQVIA) underpin our confidence in the drug’s blockbuster potential,” the team led by Yihan Li said. In AD, uptake may depend on conversion among Dupixent-experienced patients, with further validation still needed.
Galderma’s injectable aesthetics business is seen as a second major pillar of growth, with geographic expansion into markets such as China and India helping to offset possible softness in the U.S.
The analysts also highlight the pipeline potential of Relfydess, a next-generation neuromodulator currently undergoing U.S. regulatory re-filing.
While acknowledging risks tied to macro conditions and competition in skincare, Barclays believes Galderma’s unique positioning across therapeutic, aesthetic, and consumer segments justifies a premium valuation.
The firm’s CHF 133 price target implies nearly 9% upside from current levels.
Barclays also initiated Zealand Pharma with an Overweight rating and DKK 560 price target, pointing to a compelling valuation after a sharp year-to-date decline.
While near-term catalysts are limited, analysts see upside supported by petrelintide, Zealand’s long-acting amylin analogue developed with Roche. The candidate is currently in Phase 2 trials and is viewed as competitive in the growing obesity market.
“We believe petre’s improved tolerability and flexible treatment combinations could position it well to capture meaningful market share,” the analysts wrote.
The note also highlights a broad pipeline including survodutide and dapiglutide, with several late-stage data readouts expected in 2026.
Despite market volatility and rising competition in obesity therapies, Barclays believes that “ZEAL’s story is intact with long-term upside.”
“Shares may be range-bound in 2H25 given relatively sparse catalysts, but current levels offer an attractive entry point,” the analysts note.