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Zealand Pharma AS (ZLDPF) Q4 2024 Earnings Call Highlights: Strong Cash Position and Obesity ...

In This Article:

  • Revenue: DKK63 million for the full year 2024, primarily from the license and development agreement with Novo Nordisk for Zegalogue.

  • Net Operating Expenses: DKK1.33 billion, within the guidance range of DKK1.25 billion to DKK1.35 billion.

  • R&D Expenses: DKK920 million, representing 69% of operating expenses, driven by clinical advancement of obesity assets.

  • Selling and Marketing Expenses: DKK88 million, mainly for pre-commercial activities for rare disease assets.

  • Net Financial Items: Net gain of DKK189 million, compared to a net loss of DKK137 million in 2023, due to interest income from marketable securities.

  • Cash Position: DKK9 billion as of December 31, 2024, an increase of DKK7.4 billion from the start of the year.

  • 2025 Operating Expenses Guidance: Expected to be between DKK2.0 billion and DKK2.5 billion, to support mid-stage obesity pipeline and early-stage research efforts.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Zealand Pharma AS (ZLDPF) reported significant clinical advancements in their obesity pipeline, particularly with petrelintide and survodutide.

  • The company has a strong cash position of DKK9 billion, which is DKK7.4 billion higher than the previous year, enabling further investment in R&D.

  • Enrollment for the ZUPREME-1 Phase 2b trial with petrelintide has been faster than anticipated, indicating strong interest and progress.

  • Zealand Pharma AS (ZLDPF) is committed to advancing its rare disease programs, including congenital hyperinsulinism and short bowel syndrome.

  • The company has launched a dedicated sustainability strategy, focusing on responsible operations and reducing greenhouse gas emissions.

Negative Points

  • GLP-1-based therapies, a focus area for Zealand Pharma AS (ZLDPF), are associated with gastrointestinal adverse events, leading to high discontinuation rates.

  • The company received a complete response letter from the US FDA for glepaglutide, requiring an additional Phase 3 trial for approval.

  • Operating expenses are expected to significantly increase in 2025, ranging from DKK2.0 billion to DKK2.5 billion, due to expanded R&D efforts.

  • There is uncertainty regarding the timing of partnerships for petrelintide, with no specific guidance provided.

  • The company faces challenges in the competitive obesity market, with the need for differentiation in their treatment options.

Q & A Highlights

Q: Can you confirm if more data is needed for petrelintide partnerships, and how important is it to retain co-promotion rights in the US and/or Europe? A: Adam Steensberg, CEO, stated that they are not waiting for additional data for petrelintide partnerships. The focus is on finding a large pharma partner with a shared vision for petrelintide as a foundational therapy. Co-development and co-commercialization with profit share are important, rather than just a licensing agreement.