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Investing.com -- Wells Fargo (NYSE:WFC) has initiated coverage of Zealand Pharma (NASDAQ:ZEAL) with an Overweight rating and a DKK 650 price target, seeing the Danish biotech as poised to become “a key obesity player” thanks to its differentiated pipeline targeting the rapidly expanding weight loss market.
Shares in Zealand Pharma jumped 4.6% in European trading Thursday.
The analysts highlight Zealand’s two lead assets—petrelintide and survodutide—as central to this view. Both drugs are expected to deliver key data in the first half of 2026, which could unlock what Wells Fargo estimates as a combined peak sales opportunity exceeding $4 billion.
“ZEAL has developed 2 approved drugs in the cardiometabolic space and is poised to become a much bigger player with a diverse pipeline of obesity targets,” analyst Cerena Chen said in a note.
Petrelintide, an amylin analog developed with Roche, is designed to offer strong efficacy with improved tolerability versus GLP-1 drugs.
“Amylins induce weight loss through a distinct yet overlapping mechanism to GLP-1s that appears to cause less GI AEs (gastrointestinal adverse events),” Chen said, adding that petrelintide has shown “remarkably low levels of vomiting and diarrhea.”
A successful readout in the first half of 2026 (1H26) could bring visibility into a $7.7 billion peak sales opportunity as a monotherapy or combo agent, with $3.7 billion accruing to Zealand after profit-sharing, the analysts noted.
Meanwhile, survodutide, a GLP-1/glucagon dual agonist licensed to Boehringer Ingelheim, is being positioned for use in both obesity and metabolic-associated steatohepatitis (MASH).
It has shown strong efficacy on the fibrosis endpoint, though Wells Fargo notes tolerability may limit its use.
“That said, we see a $2.9B peak sales opportunity that could drive a meaningful $300M peak royalty to ZEAL, and survo could be the 3rd drug to market in obesity (data 1H26),” the analysts added.
Wells Fargo views the recent underperformance in Zealand shares—down 48% year-to-date—as a potential entry point.
The Roche partnership, they argue, “reduces capital risk and lends big pharma backing,” positioning Zealand for a significant re-rating ahead of its 2026 data catalysts.