Danish Zealand's new drug trial results are positive, with better tolerance than GLP-1, potentially opening up a billion-dollar market!

GLP-1 class weight loss drug "formidable opponent" has arrived, and Amylin class drugs have emerged.

Danish pharmaceutical company Zealand Pharma announced positive trial results for its weight loss injection Petrelintide, triggering a strong market response. European stocks soared by 20% on Friday, reaching a historical high of 775 Danish kroner at one point. Overnight, Zealand's US stock market surged by 10%.

Petrelintide belongs to the long-acting Amylin class of drugs, which have shown promising prospects in weight loss and stabilizing blood sugar. Zealand Pharma's success may position it as a strong competitor to GLP-1 drugs. Currently, Novo Nordisk and Eli Lilly have become the world's highest market value pharmaceutical companies with their popular GLP-1 drugs.

Jefferies analysts pointed out:

In addition to the effects of GLP-1, Amylin can also bring additional cardiovascular effects and may achieve higher quality weight loss by maintaining lean body weight. Based on these advantages, sales of this drug are predicted to reach as high as $10 billion.

The analysis indicates that Petrelintide not only achieves good weight loss effects but also has fewer side effects compared to GLP-1 drugs.

Jefferies analysts stated that despite 79% of the trial population being male (usually resulting in poorer weight loss effects with drugs) and with a lower median/mean baseline body mass index (BMI) (29kg/m²), significant weight loss effects were still achieved. This suggests that higher weight loss effects may be achieved when testing in a more balanced population.

Furthermore, compared to GLP-1 drugs, Amylin drugs demonstrate good tolerability. In the initial stages of treatment, they may cause milder gastrointestinal discomfort. During the weight maintenance phase, Amylin may help maintain weight by inducing a sense of fullness rather than food aversion caused by GLP-1 therapy, which could be crucial for long-term use and achieving higher quality, more sustainable weight loss effects.

A previous article pointed out that results from Zealand's Phase 1B MAD trial showed that participants receiving high-dose Petrelintide treatment experienced an average weight loss of 8.6%, while the placebo group only had a weight loss of 1.7%.

Zealand Pharma's Chief Medical Officer, Dr. David Kendall, stated:

These results further confirm the good tolerability of petrelintide and its potential to become an important alternative choice for GLP-1 class obesity management therapy.

The data paves the way for Petrelintide to quickly enter Phase 2b clinical trials, further demonstrating that this long-acting Amylin analog has comparable weight loss effects to GLP-1 receptor agonists and can provide a better patient experience. We look forward to initiating Phase 2b clinical trials of Petrelintide in the second half of 2024.