Zealand Pharma expands weight loss drug investment

Zealand Pharma is poised to boost investments in its weight loss drug candidates following a capital increase in June. The firm now anticipates 2024 operating costs to be between 1.25 and 1.35 billion Danish kroner, raised from the earlier estimate of 1.1 to 1.2 billion. CEO Adam Steensberg notes that backed by a robust financial position, they are significantly investing in their obesity candidates to advance development and seeking partnership opportunities. Despite not having a marketable product yet, they experienced a substantial quarterly progress with a promising candidate, Petrelintid, showing average weight loss of 8.6% in patients over 16 weeks, compared to a 1.7% loss in those given a placebo. The company’s stock surged 18.6% the day after this research was announced. Zealand Pharma plans further investment in the development and research of Petrelintid. In the first half of 2024, the company recorded a loss of 521 million Danish kroner.