Danish biotech Zealand Pharma is concentrating on the “subsequent technology” of weight reduction medication as opponents pile right into a market dominated by heavyweights Novo Nordisk and Eli Lilly.
CEO Adam Steensberg advised CNBC Thursday that early-stage trials of its experimental weight problems injection level to higher-quality weight reduction — with diminished muscle loss and fewer unintended effects — versus conventional GLP-1 remedies. The corporate is now scouting for a worldwide pharma agency to accomplice with, he added.
“Our focus is de facto what’s wanted within the 2030s, and it is actually about establishing, you’ll be able to say, the next-generation molecules that aren’t primarily based on GLP-1s,” Steensberg mentioned.
Final month, Zealand Pharma introduced constructive top-line outcomes from a part 1b trial of its weight-loss drug, a GLP-1/GLP-2 receptor twin agonist known 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 reputation for his or her weight reduction results.
Nonetheless, Steensberg mentioned it is the corporate’s separate weight problems drug candidate, Petrelintide, a long-acting amylin analog, which might set it other than the competitors, providing another for customers who can not tolerate GLP-1s.
“That is what we name our crown jewel. That is the one the place we now have the best expectations,” Steensberg mentioned.
“We now have a really robust feeling that this might develop into a foundational remedy sooner or later – one thing that gives the load loss that sufferers are on the lookout 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 completely different human experiences,” Steensberg mentioned, evaluating GLP-1s with amylin analogs. “When you work on satiety, will probably be a extra nice expertise. So when you get into it, you’ll be able to 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 known as CagriSema.
In June, Zealand Pharma additionally introduced constructive 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 assist” for the drug’s potential as an alternative choice to GLP-1s. Following the biotech agency’s first-half leads to August, Steensberg upped the ante, saying amylin analogs have the potential to develop into “the long run spine remedy for weight administration.”
“If we will develop a molecule that’s giving sufferers the load loss they’re on the lookout for with a really benign tolerability profile, and we will additionally present danger discount in terms of cardiovascular well being, I believe we now have all the explanations to consider it might develop into a first-line remedy,” Steensberg advised CNBC within the interview Thursday.
Looking for a worldwide pharma accomplice
Zealand Pharma, which was based nearly three many years 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. Up to now this 12 months, its share value is up greater than 110%.
Competitors within the sector is fierce, nevertheless, with Novo Nordisk and Eli Lilly nonetheless dominating the market as their so-called miracle medication develop into important to customers throughout the globe.
A number of drug regulators, together with within 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 issues stay across the medication’ different attainable unintended effects, resembling muscle loss and suicidal ideas, and U.S. authorities have pushed again towards the excessive prices of the remedies.
Syringes from weight reduction medication “Wegovy,” “Ozempic” and “Mounjaro.”
Image Alliance | Getty Pictures
However, urge for food for the remedies continues to balloon, with analysts estimating that the sector could possibly be price as much as $200 billion by 2030.
Emily Area, head of European prescribed drugs analysis at Barclays, mentioned the load loss market was prone to develop extra “fragmented” over time as pharmaceutical firms goal completely different segments, noting that remedies to counter muscle loss could possibly be a great way to “differentiate.”
Nonetheless, she famous that an organization of Zealand Pharma’s dimension and scope would wrestle to take action alone.
“It is not one thing Zealand might 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,” Area mentioned over the telephone.
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 elevate earlier this 12 months, the corporate would wish a accomplice.
“We now have a transparent ambition to proceed into the subsequent part of our life as a partnering firm,” Steensberg mentioned. “We now have to have quite a bit to supply and I believe it is a very enticing alternative to accomplice 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.