Move Aside Ozempic, WeGovy: Denmark's New Drug Just Showed Positive Results For Weightloss

Danish biotech company Zealand Pharma A/S (OTC:ZLDPF) has announced encouraging topline results from a Phase 1b multiple ascending dose (MAD) trial of its weight management drug, petrelintide. The trial results were released on Thursday and comes at a time when the weightloss drug market is experiencing domination of another Danish pharmaceutical company Novo Nordisk (NYSE:NVO) (OTC:NONOF) which produces Ozempic and WeGovy.

What Happened: As per the official press release, the 16-week trial aimed to evaluate the safety, tolerability, and clinical effects of petrelintide. The drug, designed for weight management, demonstrated “significant and clinically meaningful reductions in body weight with a very favorable tolerability profile,” stated David Kendall, MD, Chief Medical Officer of Zealand Pharma.

The study involved 48 participants, predominantly male, who received 16 weekly doses of either petrelintide or a placebo. The average body weight decreased by 8.6% among participants who completed treatment with high dose petrelintide, compared to a 1.7% decrease in the placebo group.

Petrelintide was well received, with no serious or severe adverse events reported. Zealand Pharma plans to initiate a Phase 2b clinical trial of petrelintide later in 2024.

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Why It Matters: The global market for weight-loss drugs is projected to reach a staggering $150 billion by the early 2030s, a significant leap from the previous forecast of $100 billion. This surge is attributed to the growing availability of weight-loss medications from companies like Novo Nordisk and Eli Lilly and Co (NYSE:LLY).

Novo Nordisk, the maker of Ozempic, is reportedly set to overtake Denmark's iconic toymaker, Lego A/S, as the nation's most valuable brand, thanks to the surging popularity of its weight-loss drugs on a global scale.

Price Action: Following the news, Zealand stocks closed about 10% higher at $100 on the OTC, according to Benzinga Pro.

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Image via Midjourney

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari