Game Changer: Zealand Pharma’s Petrelintide and the Future of Obesity Treatment

Zealand Pharma’s shares experienced a significant surge on Friday, following the release of promising trial results for its experimental weight-loss drug, petrelintide. This development positions the Danish biotech company as a potential competitor to the widely popular GLP-1 drugs.

The stock, trading under the symbol ZEAL, saw an impressive jump of 20% to a record high of DKR775, reaching up to DKR824. This boost came after the company announced late Thursday that its Phase 1B study revealed patients using higher doses of petrelintide for 16 weeks experienced an average weight loss of 8.6%.

David Kendall, MD, chief medical officer of Zealand Pharma, expressed optimism about petrelintide’s potential. “These results support our conviction that petrelintide is very well tolerated and can potentially play an important role as an alternative to incretin-based therapies for the management of overweight and obesity,” Kendall stated.

Petrelintide is part of a group of long-acting amylin analogs, which have demonstrated promise in both weight loss and glucose stabilization. According to Kendall, the Phase 1B data will facilitate a swift transition to Phase 2B trials later this year. He emphasized that amylin analogs could deliver weight loss results comparable to GLP-1 receptor agonists, with potentially better patient experiences.

Zealand Pharma’s success with petrelintide could position it as a rival to major players in the GLP-1 market, such as Eli Lilly (LLY) and Novo Nordisk (NVO). These companies have seen substantial success with their GLP-1 treatments, which are among the most valued drugs globally.

Analysts at Jefferies, led by Lucy Codrington, noted that the study’s predominantly male population, who typically lose less weight on such drugs, and a relatively low baseline BMI of 29 kg/m2, suggest even greater potential for weight loss in a more diverse population. They highlighted the improved tolerability profile of GLP-like amylin analogs, which could be crucial for patients who cannot tolerate incretins.

In the weight-loss maintenance phase, amylin analogs might induce satiety rather than the food aversion often caused by GLP-1 therapies. This difference could be vital for long-term use, potentially leading to higher quality and more sustainable weight loss. Additionally, amylin analogs may offer cardiovascular benefits and help preserve lean mass, contributing to better overall weight loss quality.

Jefferies forecasts that Zealand Pharma’s petrelintide could achieve peak sales of $10 billion, underscoring the significant market potential if the drug continues to demonstrate its efficacy and safety in upcoming trials.

Key Takeaways:

1. Zealand Pharma’s Stock Surge: Zealand Pharma’s shares rose by 20% following positive trial results for its weight-loss drug, petrelintide.
2. Trial Success: The Phase 1B study showed an 8.6% body weight reduction over 16 weeks, indicating significant efficacy.
3. Competitive Potential: Petrelintide could rival GLP-1 drugs from Eli Lilly and Novo Nordisk, which dominate the weight-loss drug market.
4. Improved Tolerability: Analysts highlight petrelintide’s potential for fewer gastrointestinal issues and better long-term tolerability compared to GLP-1 therapies.
5. Market Outlook: Analysts predict petrelintide could achieve peak sales of $10 billion, given its promising results and future trial prospects.

Conclusion:

Zealand Pharma’s promising trial results for petrelintide mark a significant milestone for the company and the broader weight-loss drug market. With its potential to offer comparable weight loss to GLP-1 therapies but with improved patient experiences, petrelintide could become a major player in the industry. As the drug progresses to Phase 2B trials, the market will be watching closely to see if it can fulfill its promise and transform the landscape of weight management treatments.