health
March 6, 2026
Zealand's stock falls 35% after disappointing drug result. Its CEO tells CNBC people need to focus less on the 'weight loss Olympics'
Zealand and Roche are jointly developing the drug petrelintide which in a mid-stage study led to a worse-than-expected 10.7% weight-loss over 42 weeks.
TL;DR
- Zealand Pharma's stock fell over 35% following mid-stage trial results for its drug petrelintide, which showed a 10.7% average weight reduction over 42 weeks, below analyst expectations.
- CEO Adam Steensberg criticized the market's focus on high rates of weight loss, referring to it as the 'weight loss Olympics,' and emphasized the importance of patient tolerability and long-term use.
- Petrelintide is an amylin analog, distinct from the GLP-1/GIP hormones targeted by current market leaders Novo Nordisk and Eli Lilly, and the trial indicated no gastrointestinal adverse events or discontinuations.
- Analysts suggest petrelintide shows potential for efficacy and tolerability, though possibly as a second-best option to treatments like Lilly's amylin drug.
- The lucrative weight-loss drug market is estimated to reach $150 billion by 2030, with challenges including high costs and side effects leading to patient discontinuation of existing medications.
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