Report
Jacob Mekhael

Zealand Pharma Initiation: Shifting pounds into profit

Zealand is a Danish biotech with a broad pipeline in obesity and rare disease. Petrelintide (amylin analog) could become a monotherapy challenger to GLP-1 drugs based on its efficacy and tolerability in phase 1b, and phase 2b results in 2026 could set petrelintide up to capture a significant share of the $140b obesity market as the go to option for GLP-1 intolerant patients, weight loss maintenance and beyond. In addition, survodutide (GLP-1/glucagon analog) is already out-licenced to BI with ongoing phase 3 trials in obesity with and without T2D, and has shown a strong anti-fibrotic effect in MASH. With a differentiated obesity pipeline and 2 rare disease products nearing FDA approval, we see significant upside to the current valuation and initiate coverage with a DKK 980 TP and BUY rating.
Underlying
Zealand Pharma A/S

Zealand Pharma is a biotechnology company. Co. is engaged in the discovery development and commercialization of peptide-based medicines. Co.'s pipeline comprises two implementation areas: Cardio-metabolic diseases and Other indications. The Cardio-metabolic diseases area includes medicines for diabetes and obesity treatment, such as Lyxumia (Lixisenatide), Lyxumia/Lantus, ZP2929 and Danegaptide. The Other indications area are ZP1848, Elsiglutide and ZP1480 (ABT-719) drugs for inflammatory bowel disease, chemotherapy-induced diarrhea and acute kidney injury treatment.

Provider
KBC Securities
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Analysts
Jacob Mekhael

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