(comments from analysts at the end)

Danish pharmaceutical company Zealand Pharma and Swiss firm Roche have announced positive results from a Phase 2 study of the obesity drug petrelintide. In the trial, which included 493 participants, an average weight loss of up to 10.7 percent was achieved after 42 weeks, compared to 1.7 percent for placebo.

The treatment also demonstrated tolerability comparable to placebo, with no cases of vomiting at the most effective dose.

The company now plans to move forward with Phase 3 studies later this year.

“Petrelintide has the potential to redefine weight management. Its placebo-like tolerability exceeds our expectations, and combined with double-digit weight loss, it sets a new standard. The key to unlocking value in the obesity market and delivering improved health outcomes is a treatment that patients can stick with. These results bring us closer to the goal of providing people with obesity treatments that fit the lives they actually want to live.”

Genentech and Roche entered into an agreement regarding petrelintide with Zealand Pharma in 2025.

Nordea has downgraded its recommendation for Zealand Pharma to hold (from buy) after the results came in below expectations.

“Although the tolerability profile looks strong, we believe the results raise questions about how petrelintide differentiates itself from GLP-1, making the stock's outlook uncertain,” the bank writes. The target value is 270 Danish kroner.

Zealand Pharma's share price plunged by around 30 percent in early trading on the Copenhagen Stock Exchange. Jefferies notes that the stock is already pricing in peak sales of less than USD 1.5 billion, compared to the investment bank's estimate of USD 6 billion.

Furthermore, it is highlighted that the drug will now likely be seen as the second-best alternative to Eli Lilly's eloralintide.

Jefferies maintains a buy rating on Zealand Pharma with a price target of 630 Danish kroner, representing a 71 percent upside.