Zealand Pharma A/S ((DK:ZEAL)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Zealand Pharma’s recent earnings call conveyed a predominantly positive sentiment, emphasizing the company’s strong partnerships, solid financial footing, and promising advancements in their obesity management programs. Despite facing challenges such as manufacturing delays and exchange rate losses, these issues are overshadowed by strategic developments and the company’s financial strength.
Strong Partnership with Roche
Zealand Pharma’s collaboration with Roche is progressing well, particularly in the petrelintide program. The partnership has led to significant manufacturing investments in a high-volume, high-throughput facility in the U.S., alongside a robust clinical development plan, underscoring the strategic importance of this alliance.
Robust Financial Position
The company reported impressive revenue figures of DKK 9.1 billion for the first half of 2025, primarily due to an upfront payment from Roche. This has bolstered Zealand Pharma’s cash position to DKK 16.6 billion, providing a strong foundation for future investments and obligations.
Advancement in Weight Management Programs
Zealand Pharma is making significant strides in its obesity management pipeline, with promising Phase II data anticipated for petrelintide and Phase III data for survodutide. These developments highlight the company’s commitment to addressing obesity with innovative solutions.
Strategic Leadership Appointments
To drive innovation and regulatory strategies, Zealand Pharma has strengthened its leadership team with key appointments, including a new Chief Scientific Officer and Chief Development Officer. These appointments are expected to enhance the company’s strategic direction.
Potential in MASH Treatment
Survodutide is showing promising results in improving liver fibrosis in MASH patients, with Boehringer Ingelheim’s robust Phase III program underway. This development could position Zealand Pharma as a key player in the MASH treatment landscape.
Manufacturing Delays for Rare Disease Program
The company faces delays in its rare disease program due to a third-party manufacturing facility for dasiglucagon in congenital hyperinsulinism not yet receiving a classification upgrade, affecting product availability.
Exchange Rate Losses
Zealand Pharma reported net financial items amounting to a negative DKK 157 million, primarily due to exchange rate adjustments related to USD deposits. This financial impact highlights the challenges of currency fluctuations.
Forward-Looking Guidance
Looking ahead, Zealand Pharma provided detailed guidance on its key obesity programs, petrelintide and survodutide. The company expects Phase II data for petrelintide by the end of 2025 and plans to initiate a Phase III program in the second half of 2026. The petrelintide program, in partnership with Roche, will also see the initiation of Phase II trials for a combination product in the first half of 2026. Zealand Pharma confirmed its financial guidance on net operating expenses between DKK 2 billion and DKK 2.5 billion for the fiscal year.
In conclusion, Zealand Pharma’s earnings call highlighted a positive outlook, driven by strong partnerships, financial robustness, and promising advancements in obesity management. While challenges exist, the company’s strategic developments and leadership appointments position it well for future growth.