Novo Nordisk AS and Eli Lilly face a new competitor, will the "weight loss drug" track soon have three strong players?

Weight loss drugs have become popular worldwide, attracting numerous pharmaceutical companies to enter the market. Following Novo Nordisk AS and Eli Lilly, "the rising star of weight loss drugs" Zealand Pharma shines.

The stock price of biotechnology company Zealand Pharma has skyrocketed over 100% in the past year, as investors are optimistic about its potential in anti-obesity drugs.

Zealand has partnered with German pharmaceutical company Boehringer Ingelheim to develop a weight loss drug called Survodutide, which is a GLP-1 receptor agonist similar to Novo Nordisk AS's Wegovy.

Previously released global multicenter Phase II trial data showed that the weight loss after 46 weeks could reach 19%. In addition, there are reports that in Phase III trials, the weight loss could be close to 20% to 25%.

Currently, the drug is still in the late-stage experimental phase. Zealand stated that in the future, they hope to collaborate with other groups to treat obesity instead of selling to large companies. Zealand expects to receive approximately 10% in royalty fees from the potential sales of this weight loss drug.

In addition to GLP-1 agonist drugs, Zealand is also developing Amylin therapy. Similar to weight loss drugs, Amylin can slow gastric emptying and promote satiety, achieving similar weight loss effects.

What is worth noting is that Amylin can also reduce the side effects associated with GLP-1, such as vomiting, nausea, and constipation. An analyst who follows this industry stated that Zealand's Amylin therapy is one of the "most advanced therapies" under development.

Zealand CEO Adam Steensberg pointed out:

Within a year, 20% to 30% of GLP-1 users may drop out due to these side effects. Even if your patients have a good experience, one drug cannot fit everyone.

In the past year, with the booming demand for miracle weight loss drugs, many countries have experienced shortages, and players of all sizes are rushing into the weight loss drug race.

Goldman Sachs analysts predict that with more products coming to market in the coming years, the annual sales of the global anti-obesity drug market could increase to around $100 billion by 2030, compared to only $6 billion in annual sales earlier this year.

Steensberg pointed out that in the rapidly growing anti-obesity drug market dominated by Novo Nordisk AS and Eli Lilly, other pharmaceutical companies can still "win" this competition.

Although Novo Nordisk AS and Eli Lilly are in a leading position, I believe that other companies still have room to develop weight loss products. There are 220 diseases that may be related to obesity, and there will be a need for a greater variety of drug options in the future.