Zealand Pharma's Petrelintide Shows Promise in Weight Loss Study, Shares Surge

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Zealand Pharma's Petrelintide Shows Promise in Weight Loss Study, Shares Surge

Team FS

21/Jun/2024

Key Points:

1: Zealand Pharma's shares rise nearly 23% after positive results from petrelintide weight loss drug study.

2: Petrelintide demonstrated up to 8.6% average body weight reduction, compared to 1.7% with placebo.

3: Analysts highlight potential for petrelintide as a safer alternative to GLP-1 receptor agonists like Ozempic.

Zealand Pharma saw its stock surge nearly 23% following encouraging results from an early-stage study of its experimental weight loss drug, petrelintide. The study revealed that a 16-week course of high doses of the long-acting amylin analog led to an average reduction in body weight of up to 8.6%, significantly outperforming the 1.7% reduction observed with the placebo.

The company reported that petrelintide was well tolerated across all dosage levels, with only one participant out of 48 withdrawing from the study due to adverse effects. These results provide robust support for petrelintide's potential as an alternative to GLP-1 receptor agonist-based therapies, commonly used for weight management.

GLP-1 receptor agonists like Ozempic, produced by Novo Nordisk, have gained popularity not only for treating diabetes but also for their weight-loss effects. Zealand Pharma aims to position petrelintide as a competitive option, offering comparable weight loss efficacy with potentially better patient tolerance.

David Kendall, Zealand Pharma's chief medical officer, emphasized that the study reinforces the drug's safety profile and its potential to deliver weight loss results similar to GLP-1 receptor agonists while enhancing patient experience.

Encouraged by these findings, Zealand Pharma plans to advance petrelintide into a Phase 2 mid-stage clinical trial to further evaluate its effectiveness and safety in a larger patient cohort.

Analysts from Jefferies noted in a recent report that the initial study results suggest petrelintide "ticks all the boxes" for a viable alternative to existing treatments. They highlighted the drug's potential to offer comparable weight loss benefits to GLP-1 receptor agonists with improved tolerability.

In addition to petrelintide, Zealand Pharma is also conducting trials for another weight loss drug, survodutide, in collaboration with Boehringer Ingelheim. Positive Phase 2 trial results for survodutide earlier this year contributed to previous gains in Zealand Pharma's stock price.

The surge in Zealand Pharma's shares reflects growing investor optimism around the potential of petrelintide and the broader competitive landscape in the obesity treatment market. As pharmaceutical companies intensify efforts to develop effective and well-tolerated weight loss therapies, Zealand Pharma's advancements in petrelintide mark a significant milestone in its pursuit of addressing global health challenges related to overweight and obesity.

This article provides a comprehensive overview of Zealand Pharma's recent developments, offering insights into its innovative approaches in pharmaceutical research and its impact on the stock market and healthcare industry trends.

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Zealand Pharma's Petrelintide Shows Promise in Weight Loss Study, Shares Surge

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