Zealand Pharma We think sell off is overdone, jury is still out on eloralintide

Following the release of phase 1 MAD results for eloralintide (Lilly, no coverage) showing 11.3% weight loss at 12 weeks, Zealand's stock has declined -18% over the last 5 days. While the results look competitive vs. Zealand's petrelintide at first glance, key details on dosing and GI side effects per treatment arm remain undisclosed. We note that, given their similar activity on both amylin and calcitonin receptors, cagrilintide's long term 68 week data de-risks petrelintide's development. This cannot be extrapolated to eloralintide due to being a selective amylin receptor agonist. With preclinical data pointing to a weight loss plateau with selective amylin agonists, we think the jury is still out on eloralintide, and more follow up is needed. As such, we view the recent sell-off as overdone, and reiterate our DKK 1,120 TP and Buy rating.