Zealand Pharma Shares Plunge 23% After 19% Survodutide Dropout Rate, Shifting Focus to Petrelintide
Updated
Updated · CNBC · Jun 19
Zealand Pharma Shares Plunge 23% After 19% Survodutide Dropout Rate, Shifting Focus to Petrelintide
1 articles · Updated · CNBC · Jun 19
Summary
A 19% discontinuation rate tied to side effects in Zealand Pharma's obesity drug survodutide triggered a 23% share drop earlier this month, even though the drug met its main goal with 16.6% average weight loss.
UBS cut its price target to 540 Danish kroner from 730 and slashed survodutide peak-sales estimates by nearly 80%, saying the tolerability profile could sharply limit obesity use.
Petrelintide is now carrying the obesity-growth story despite its own 36% stock-driven setback in March after sub-11% mid-stage efficacy, with late-stage trials due to start in the second half and diabetes data also pending.
ADA presentations sharpened investor focus on tolerability over headline weight loss, while Eli Lilly's retatrutide data raised the competitive bar and left survodutide increasingly viewed as a liver-disease asset.
Zealand shares have recovered part of the selloff but remain down 38% this year, and analysts including UBS and Jefferies see the next major inflection point more likely in 2027.