Danish biotechnology research company Zealand Pharma (ZLDPF) saw its shares soar more than 35% in Copenhagen on Monday after following positive results from a trial of its liver disease treatment, signaling potential competition in the thriving weight loss drug sector.
The stock ended the session at a new closing high of DKK648.50.
In the Phase 2 trial of the survodutide drug, 83% of adults exhibited positive outcomes for a type of liver inflammation associated with excess fat cells, known as "MASH," the company disclosed.
The drug, which Zealand is developing with Boehringer Ingelheim, is currently undergoing five Phase 3 trials in a clinical program for overweight or obese individuals, has garnered fast-track designation from the U.S. Food and Drug Administration (FDA).
“Top-line results demonstrated an improvement in MASH, at all doses explored in the trial. Treatment with survodutide did not show unexpected safety or tolerability issues, including at the higher dose of 6.0 mg,” analysts at Nordea’s healthcare equity research team wrote in a Monday note.
“Importantly, the [Phase 2] MASH trial also tells us that the 6mg dose is safe, which is the top dose used in the ongoing [Phase 3] obesity trial too,” they added.
In a bid to challenge leading obesity drugmakers Novo Nordisk (CSE:NOVOb) (NOVO) and Eli Lilly (NYSE:LLY), Zealand and Boehringer in June 2023 released promising intermediate Phase II trial results. However, the final and most critical stage of testing awaited clearance.
Carinne Brouillon, head of Boehringer's human pharma unit, said she hopes the companies can launch the drug by 2027 or 2028, subject to positive outcomes in late-stage trials.