On Monday, Zealand Pharma A/S (NASDAQ:ZEAL:DC) (OTC: ZLDPF) saw its price target increased to DKK 1,100 from DKK 1,050, while maintaining a Buy rating, according to a recent report by BTIG. The adjustment follows promising early results from the company's obesity treatment, dapiglutide.
Patients who were treated with dapiglutide for 13 weeks experienced an average weight loss of 6.2%, compared to a 2.1% mean weight gain in placebo recipients. This 8.3% placebo-corrected weight loss result is viewed positively, especially when compared to tirzepatide's 7.2% weight loss at the same 13-week mark in the SURMOUNT-1 trial.
The study's demographics revealed a significant gender skew, with 85% of the participants being male, which contrasts with the 33% male participation in the SURMOUNT-1 trial. Additionally, the median body mass index (BMI) of the subjects in the study was 30kg/m2, lower than the 38kg/m2 median BMI in SURMOUNT-1. The firm suggests that with more females and a higher median BMI in future studies, dapiglutide could demonstrate even greater efficacy.
The management of Zealand Pharma has indicated that dapiglutide's tolerability profile aligns with that of other incretin-based therapies. The most commonly reported adverse events (AEs) were gastrointestinal-related, which led to only two discontinuations in the study. Other AEs included a low rate of injection site reactions, all of which were mild.
Looking ahead, an additional cohort has been included to explore higher doses of dapiglutide up to 26mg over 28 weeks, with results expected in the first half of 2025. A Phase 2b trial in obesity with dapiglutide is also set to begin in the first half of 2025, with plans to assess its effects on select obesity-related comorbidities.
Following these developments, BTIG has increased the probability of success for dapiglutide in obesity treatments to 75% from the previous 60%, leading to the raised price target for Zealand Pharma.
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