Zealand Pharma, Another Denish Pharmaceutical Company, Is Rising Up With Its Latest Breakthrough
The booming weight loss drug market has enabled many pharmaceutical companies to reap huge profits, and Zealand Pharma of Denmark is no exception. The company announced on Monday that a trial of its liver disease treatment showed promising results, prompting its shares to surge 36% on Monday.
Zealand Pharma and its research and development partner, Boehringer Ingelheim, stated in an announcement that Phase II trials of its drug, survodutide, showed positive results in 83% of adult subjects treated for Metabolic Associated Fatty Liver Disease (MASH). In comparison, the improvement rate for the comparable placebo group was only 18.2%.
The drug, survodutide, works similarly to other injectable weight loss drugs by mimicking the gut hormone GLP-1 (Glucagon-like peptide-1) to suppress appetite. However, the drug also imitates another gut hormone called glucagon.
It's been shown in trials that the drug demonstrates efficacy among obese subjects and is currently undergoing five Phase III clinical trials for overweight or obese subjects. The trial results indicate the drug is safe, even when used at the maximum dosage.
Carinne Brouillon, head of Boehringer Ingelheim's Human Pharmaceuticals division, expressed hope that the drug would launch in 2027 or 2028, depending on whether Phase III trial results are favorable.
Previously, several other weight loss drugs have previously caused manufacturer stock prices to soar, with Denmark's Novo Nordisk becoming Europe's highest-valued company due to the development of its weight loss drugs Ozempic and Wegovy.
Meanwhile, analysts began focusing on the potential effectiveness of such drugs in obesity treatment, with Zealand Pharma shares rising 36.45% in London on Monday. Several other companies, including Eli Lilly, Roche, and AstraZeneca, are also looking to compete in this space.
According to some analysts, Zealand Pharma's trial results showed a clear victory. The preliminary results demonstrate that various doses of survodutide used in the trial showed effectiveness in treating MASH, and there were no unexpected safety or tolerance issues observed in using survodutide for treatment, including the higher dose of 6.0 mg.
They added, Importantly, the [Phase 2] MASH trial also tells us that the 6mg dose is safe, which is the top dose used in the ongoing [Phase 3] obesity trial too.
MASH, previously known as Nonalcoholic Fatty Liver Disease (NAFLD), is caused by diet-related fat accumulation in the liver, leading to inflammation and potential cirrhosis. It's estimated that there are 115 million MASH patients globally, with some needing organ transplants.
Despite there being no current treatments available, several drug manufacturers have seen the treatment of MASH as an additional use for new obesity drugs. Novo Nordisk, the pioneer in weight loss drugs, is conducting Phase III trials for the treatment of MASH with the active ingredient semaglutide in its Wegovy weight loss injection.
Meanwhile, notably, Eli Lilly's weight loss drug, Mounjaro (also known as Zepbound), is being tested in Phase II trials for MASH with its active ingredient. This drug has a dual-action mechanism based on the hormones GLP-1 and GIP (Gastric Inhibitory Polypeptide), which not only promote insulin release to lower blood sugar levels but also impact appetite and energy consumption, aiding in weight management.