As rivals rush into a market dominated by heavyweights, Danish biotech company Zealand Pharma is eyeing the “next generation” of weight-loss drugs Novo Nordisk and Eli Lilly and Company.
Early trials of its experimental obesity injection show greater weight loss, less muscle loss and fewer side effects than traditional GLP-1 treatments, CEO Adam Steensberg told CNBC on Thursday. He added that the company is currently looking for a global pharmaceutical company to collaborate.
“Our focus is really on what’s needed in the 2030s, so to speak, and it’s really about building the next generation of molecules that are not based on GLP-1,” Steensberg said.
Last month, Zealand Pharma announced positive top line results From a Phase 1b trial of its weight loss drug Dapiglutide, a dual GLP-1/GLP-2 receptor agonist. That puts the company head-to-head with major obesity companies Novo Nordisk and Eli Lilly, whose GLP-1 drugs Wegovy and Zepbound are popular for their weight-loss effects, respectively.
However, Steensberg said the company’s separate obesity candidate, Petrelintide, a long-acting amylin analog, could differentiate it from the competition and provide an alternative for users who cannot tolerate GLP-1.
“This is what we call the crown jewel. This is what we have the highest expectations for,” Stinesburg said.
“We have a very strong feeling that this could become a foundational therapy in the future – both to achieve the weight loss that patients are looking for but also to be better tolerated,” he added.
New Zealand Pharmaceuticals.
Amylin analogs are an emerging form of weight loss treatment. They work by mimicking the hormones secreted by the pancreas along with insulin to increase feelings of satiety. This is different from GLP-1 agonists, which mimic the incretin hormone produced in the gut to suppress appetite and regulate blood sugar.
“These are two very different human experiences,” Steensberg said, comparing GLP-1 to amylin analogs. “If you work on feeling full, it’s going to be a more pleasurable experience. So once you get into it, you can stick with treatment long-term.”
Novo Nordisk is also testing its own treatment, combining the GLP-1 ingredient Semaglutide with the amylin analog Cagrilintide to create a drug candidate called CagriSema.
In June, Zealand Pharma also announced positive results from a Phase 1b trial of Petrelintide, which showed that a course of 16 weekly injections resulted in an average weight loss of up to 8.6%.
The company said at the time that the study results showed “strong support” for the drug’s potential as a GLP-1 replacement. After the biotech company reported first-half results in August, Sternsberg upped the ante, saying amylin analogs have the potential to become “the mainstay of weight management in the future.”
“If we can develop a molecule that gives patients the weight loss they want and has a very benign tolerability profile, and we also reduce the risk in terms of cardiovascular health, I think we have good reason to believe that It could become a first-line therapy,” Sternsberg told CNBC in an interview Thursday.
Seeking global pharmaceutical partners
Zealand Pharma, which was founded nearly three decades ago to specialize in peptide drugs, has been gaining momentum in recent months as it moves further into obesity treatments. Its shares have risen more than 110% so far this year.
However, competition in the industry is fierce, with Novo Nordisk and Eli Lilly still dominating the market as they so-called Miracle drugs have become vital to consumers around the world.
Several drug regulatory agencies, including the United States and the European Union, have now expanded the use of GLP-1 drug labels to treat obesity-related comorbidities and other conditions. Meanwhile, concerns remain about other possible side effects of the drugs, such as muscle loss and suicidal thoughts, and U.S. authorities have pushed back against the high cost of treatment.
Still, demand for treatments continues to grow, and analysts estimate the industry could be worth as much as $200 billion by 2030.
Emily Field, head of European pharmaceuticals research at Barclays, said the weight loss market is likely to become more “fragmented” over time as pharmaceutical companies target different segments, noting that treatments to combat muscle loss may be Great way to “differentiate”.
However, she noted that it would be difficult for a company of Sealand Pharmaceuticals’ size and scope to do this alone.
“There’s no way New Zealand could even imagine making something like this themselves. A lot of people who have it still have it but wonder if it’s going to be bought,” Field said by phone.
Sternsberg on Thursday ruled out speculation about an acquisition, saying it was “definitely not part of our plans.” But he pointed out that even with a massive $1 billion raise funds Earlier this year, the company needed a partner.
“We have a clear goal to continue as partners into the next phase of our lives,” Sternsberg said. “We have a lot to offer, and I think it’s a very attractive opportunity for a large pharmaceutical company to partner with Sealand right now.”
Partnership discussions are ongoing and could continue into the first half of next year, he added.
Petrelintide and Dapiglutide will now enter Phase 2 trials in overweight and obese patients in late 2024 and first half of 2025, respectively.
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