Investing.com – Shares in Danish biotech Zealand Pharma (NASDAQ:) rose on Friday after announcing positive results from an early-stage trial of its weight-loss drug candidate.
At 10:00 ET (14:00 GMT), Zealand Pharma shares were trading more than 17% higher at DKK758, after doubling this year.
Zealand Pharma said late on Thursday that a course of 16 weekly high doses of long-acting amylin analogue petrelintide reduced body weight in the study by an average of 8.6%. A placebo drug led to a 1.7% decrease in body weight.
One in 48 study participants withdrew due to negative effects.
Petrelintide was “assessed as safe and well tolerated at all dose levels,” and the results provided “robust support” for its potential as an alternative to GLP-1 receptor agonist-based therapies for weight management, Zealand Pharma said in a news release.
“16-week amylin weight loss of 8.6% reaches the top end of the 7%-9% bar, indicating a potential of ≥15% in longer studies,” Jefferies analysts said in a note.
“Additionally, a high percentage of men at 80% and a low BMI at baseline may indicate that weight loss could improve further. Importantly, tolerability is impressive despite one discontinuation in our view, supporting a potential role for amylin as a more acceptable alternative to GLP-1,” the bank added.
Jefferies expects peak sales of $10 billion with a 50% probability for a net present value of DKK 235/share.
It maintains a buy rating, with a price target of DKK790.
Analysts at BTIG were also impressed, saying the “data further reinforces petrelintide’s best-in-class potential as an amylin analogue in obesity.”
Zeeland has outperformed to date, BTIG said, “and we see additional room for upside through several data catalysts later in 2024. The company’s obesity pipeline includes best-in-class incretins and an amylin analogue that we believe that could arise. as a preferred next-generation treatment option.”
BTIG also maintained a buy rating, with a price target of DKK840.
