Zealand Pharma’s Earnings Call: Growth Amid Challenges

Zealand Pharma A/S ((DK:ZEAL)) has held its Q1 earnings call. Read on for the main highlights of the call.

Zealand Pharma’s recent earnings call presented a mixed sentiment, highlighting both optimism and challenges. The company is in a strong financial position and has formed a strategic partnership with Roche, which is expected to drive future growth and pipeline expansion. However, challenges such as geopolitical and market uncertainty and regulatory hurdles for Dasiglucagon were also acknowledged.

Strategic Partnership with Roche

Zealand Pharma has entered a transformative collaboration with Roche concerning petrelintide. This partnership includes co-development and co-commercialization rights, with a 50/50 profit-sharing agreement in the US and Europe. This collaboration is poised to significantly impact the company’s growth trajectory.

Strong Financial Position

The company has secured a robust financial footing, with cash, cash equivalents, and marketable securities totaling DKK 8.5 billion as of March 31, 2025. This capital is expected to support Zealand Pharma’s journey towards profitability.

Future Growth and Pipeline Expansion

Zealand Pharma is planning significant investments in its research pipeline, focusing on obesity and inflammation. The partnership with Roche is expected to bolster these efforts and drive future growth.

Successful Enrollment in ZUPREME-1 Trial

The company successfully completed enrollment for the Phase 2 ZUPREME-1 trial in March 2025, just three months after its initiation. This swift progress highlights the company’s commitment to advancing its clinical programs.

Phase 3 Program for Survodutide

Boehringer Ingelheim has completed enrollment in the Phase 3 synchronized cardiovascular outcomes trial for survodutide. This drug holds best-in-class potential for treating obesity and MASH, marking a significant milestone for Zealand Pharma.

Geopolitical and Market Uncertainty

Despite acknowledging challenges due to geopolitical and market uncertainty, Zealand Pharma believes it is well-positioned to navigate these issues, thanks to its strong financial standing and strategic partnerships.

Regulatory Challenges for Dasiglucagon

The resubmission of the NDA for Dasiglucagon in congenital hyperinsulinism is contingent on an inspection classification upgrade of the third-party manufacturer’s facility, posing a regulatory challenge for the company.

Real-World Persistence Challenges

Zealand Pharma has identified that real-world treatment persistence with current obesity therapies remains a challenge, with only about 2% of eligible patients on pharmacotherapy.

Forward-Looking Guidance

During the call, Zealand Pharma provided comprehensive guidance, anticipating a substantial boost in their cash position with an expected US$1.4 billion upfront payment from the Roche collaboration. This will bring their cash reserves to approximately DKK 18 billion. The company expects to leverage this financial strength to reach profitability without needing additional capital. They reaffirmed their financial guidance for 2025, projecting net operating expenses between DKK 2 billion and DKK 2.5 billion, excluding transaction costs related to the Roche deal. Major milestones in their clinical pipeline are expected in 2026.

In summary, Zealand Pharma’s earnings call reflected a positive outlook bolstered by a strong financial position and strategic partnerships, particularly with Roche. While challenges such as regulatory hurdles and market uncertainties exist, the company remains optimistic about its growth prospects and financial stability.