health
What this biotech's volatile stock price tells you about the weight loss market right now
While the market's enthusiasm for one of Zealand's experimental drugs has cooled, investors are shifting focus to amylin-based medicines as a growth driver
TL;DR
- Zealand Pharma's shares dropped significantly due to high dropout rates for its weight loss drug survodutide, with 19% of patients ending treatment.
- Despite survodutide's tolerability issues, it achieved its primary target of 16.6% average weight loss.
- Investors are now focusing on Zealand's amylin-based drug, petrelintide, as a potential future success, although it also faced early efficacy concerns.
- Analysts have slashed survodutide's peak sales forecasts but maintain a positive outlook on petrelintide, highlighting the potential of amylin drugs for better tolerability.
- Petrelintide is expected to initiate late-stage trials in the second half of the year and faces competition from companies like Eli Lilly.