Zealand Pharma skyrockets 32% after guaranteeing weight-loss drug outcomes

Obesity product competition is a 'win-win' for companies and society, Novo Nordisk CEO says

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Vials relocation along a conveyor at the Novo Nordisk A/S production centers in Hillerod, Denmark, on Monday, June 12,2023 The success of Novo’s bestsellers Ozempic and Wegovy, drugs that assist individuals lose substantial quantities of weight, has actually produced something of a gold rush in the pharma market with about 40 business establishing items that will magnify competition.Â

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Shares of Denmark’s Zealand Pharma soared greater, after the business published strong arise from a trial of a liver illness treatment that has actually been promoted as a prospective rival in the growing weight-loss drug market.

The Phase 2 trial of the survodutide drug revealed 83% of grownups saw favorable outcomes for a kind of liver swelling triggered by excess fat cells called “MASH,” the business stated in a statement on Monday.

The drug has “demonstrated efficacy” in individuals with weight problems and is presently going through 5 Phase -3 trials in a medical program for individuals who are obese or overweight. It has actually gotten fast-track classification from the U.S. Food and Drug Administration.

Analysts acquired the drug’s possible efficacity in weight problems research study following the current test outcomes, which showed the security of the leading dose utilized because trial.

Shares of Zealand Pharma swelled by 32% by 11: 15 a.m. London time, amidst interest for the business’s capacity in the extremely profitable weight problems market that moved fellow Danish drugmaker Novo Nordisk to end up being Europe’s most important company on its advancement of Ozempic andWegovy Several other companies, consisting of Eli Lilly, Roche and AstraZeneca, likewise look for to complete in the sector.

“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,” Michael Novod, head of bank Nordea’s health care equity research study group, stated in a Monday note, hailing the current Zealand Pharma results as an “unequivocal win for survodutide.” Â

“Importantly, the [Phase 2] MASH trial likewise informs us that the 6mg dosage is safe, which is the leading dosage utilized in the continuous [Phase 3] weight problems trial too,” he included.

Analysts at Jefferies examined that Zeal Pharma’s “position as a key player in next wave of obesity therapeutics is underappreciated,” keeping in mind the significance of the German co-inventor Boehringer Ingelheim‘s statement that the drug will advance as “quickly as possible” with treatment on liver illness and associated conditions.

Pharmaceutical company Boehringer Ingelheim is moneying and running scientific advancement of survodutide.

How soaring demand for Ozempic and Wegovy have led to Novo Nordisk's meteoric rise