Danish biotech Zealand Pharma is focusing on the “subsequent era” of weight reduction medicine as opponents pile right into a market dominated by heavyweights Novo Nordisk and Eli Lilly.
CEO Adam Steensberg informed CNBC Thursday that early-stage trials of its experimental weight problems injection level to higher-quality weight reduction — with diminished muscle loss and fewer unwanted side effects — versus conventional GLP-1 remedies. The corporate is now scouting for a worldwide pharma agency to companion with, he added.
“Our focus is admittedly what’s wanted within the 2030s, and it is actually about establishing, you possibly can say, the next-generation molecules that aren’t primarily based on GLP-1s,” Steensberg mentioned.
Final month, Zealand Pharma introduced optimistic top-line outcomes from a part 1b trial of its weight-loss drug, a GLP-1/GLP-2 receptor twin agonist referred to as Dapiglutide. It places the corporate head-to-head with main weight problems gamers Novo Nordisk and Eli Lilly, whose GLP-1s Wegovy and Zepbound, respectively, have exploded in recognition for his or her weight reduction results.
Nevertheless, Steensberg mentioned it is the corporate’s separate weight problems drug candidate, Petrelintide, a long-acting amylin analog, which may set it aside from the competitors, providing an alternate for customers who can’t tolerate GLP-1s.
“That is what we name our crown jewel. That is the one the place we have now the very best expectations,” Steensberg mentioned.
“We have now a really robust feeling that this might turn into a foundational remedy sooner or later – one thing that gives the load loss that sufferers are searching for however with the potential for a greater tolerability profile,” he added.
Zealand Pharma.
Amylin analogs are a nascent type of weight reduction therapy. They work by mimicking a hormone that’s co-secreted with insulin within the pancreas to extend satiety. This differs from GLP-1 agonists, which mimic incretin hormones produced within the intestine to suppress urge for food and regulate blood sugar.
“It is two very totally different human experiences,” Steensberg mentioned, evaluating GLP-1s with amylin analogs. “In the event you work on satiety, it is going to be a extra nice expertise. So when you get into it, you possibly can keep long-term [on the] therapy.”
Novo Nordisk can be experimenting with its personal model of the therapy, combining the GLP-1 part Semaglutide with amylin analog Cagrilintide in a candidate referred to as CagriSema.
In June, Zealand Pharma additionally introduced optimistic outcomes from a part 1b trial of Petrelintide, which confirmed {that a} course of 16 weekly injections diminished physique weight by as much as 8.6% on common.
The corporate mentioned on the time that the findings confirmed “strong help” for the drug’s potential as a substitute for GLP-1s. Following the biotech agency’s first-half ends in August, Steensberg upped the ante, saying amylin analogs have the potential to turn into “the long run spine remedy for weight administration.”
“If we will develop a molecule that’s giving sufferers the load loss they’re searching for with a really benign tolerability profile, and we will additionally present threat discount relating to cardiovascular well being, I feel we have now all the explanations to consider it may turn into a first-line remedy,” Steensberg informed CNBC within the interview Thursday.
Searching for a worldwide pharma companion
Zealand Pharma, which was based virtually three a long time in the past with a concentrate on peptide-based medicines, has ridden a rising tide over latest months because it has ventured additional into weight problems remedies. To this point this 12 months, its share worth is up greater than 110%.
Competitors within the sector is fierce, nonetheless, with Novo Nordisk and Eli Lilly nonetheless dominating the market as their so-called miracle medicine turn into important to shoppers throughout the globe.
A number of drug regulators, together with in the U.S. and European Union, have now expanded GLP-1 drug labels to be used in treating obesity-related comorbidities and different sicknesses. It comes as considerations stay across the medicine’ different doable unwanted side effects, akin to muscle loss and suicidal ideas, and U.S. authorities have pushed again in opposition to the excessive prices of the remedies.
Nonetheless, urge for food for the remedies continues to balloon, with analysts estimating that the sector may very well be value as much as $200 billion by 2030.
Emily Subject, head of European prescription drugs analysis at Barclays, mentioned the load loss market was prone to develop extra “fragmented” over time as pharmaceutical corporations goal totally different segments, noting that remedies to counter muscle loss may very well be a great way to “differentiate.”
Nevertheless, she famous that an organization of Zealand Pharma’s dimension and scope would battle to take action alone.
“It isn’t one thing Zealand may even take into consideration, manufacturing themselves. Lots of people who’ve owned it nonetheless personal it, however are questioning if it should get purchased or not,” Subject mentioned over the cellphone.
Steensberg on Thursday dominated out rising hypothesis round a takeover, saying it is “positively not a part of our plans.” However he famous that even with a major $1 billion capital increase earlier this 12 months, the corporate would wish a companion.
“We have now a transparent ambition to proceed into the subsequent part of our life as a partnering firm,” Steensberg mentioned. “We have now to have so much to supply and I feel it is a very engaging alternative to companion with Zealand proper now for a big pharma firm.”
He added that partnership discussions are underway and prone to proceed into the primary half of subsequent 12 months.
Petrelintide and Dapiglutide will now progress to part 2 trials on obese and overweight sufferers in late 2024 and the primary half of 2025, respectively.
