Zealand Pharma's Shares Soar 3.8% as CEO Signals Potential Partnership for Weight Loss Breakthrough

In an impressive turnaround, shares of Zealand Pharma (CSE: ZELA) surged by 3.8% to DKK 943.50 on Tuesday, effectively reversing the previous day's downturn. This rebound comes after the company's CEO hinted at seeking a strategic partnership with a major pharmaceutical player for its promising weight loss drug.

Market analysts from Jefferies have underscored that the potential of Zealand Pharma’s amylin pipeline, coupled with the prospects of prosperous partnerships, largely drives this uptrend. Despite strong performance throughout the year, the upcoming data releases concerning both Zealand Pharma's own amylin development and that of rival companies are anticipated to keep investors engaged and optimistic. Jefferies also pointed out that the scheduled MSCI Standard promotion effective August 30 would likely further bolster the stock's standing in the market.

Progress in Zealand Pharma's amylin program has been notable, especially following favorable Phase Ib trial results for petrelintide, its long-acting amylin candidate. The results indicate substantial weight loss could be achieved, prompting plans for a Phase IIb study slated for later this year. Analysts are enthusiastic about the amylin's prospects, not only as a standalone obesity treatment but also in synergy with other therapies.

Jefferies projects a peak sales target of $10 billion for the amylin treatment, estimating a 60% probability, which translates to a net present value of approximately c.DKK 365 per share, assuming a partnership emerges after the Phase IIb trial results in 2026. Consequently, the firm maintains a "buy" recommendation on the stock.