COPENHAGEN - Zealand Pharma A/S (NASDAQ:ZEAL) has released topline results from its DREAM trial, evaluating the effects of its investigational drug dapiglutide in individuals with obesity. The 12-week study showed an average weight loss of up to 4.3% with low doses of the dual GLP-1/GLP-2 receptor agonist, compared to 2.2% for the placebo group.
Participants in the trial, which did not include lifestyle interventions like diet or exercise, were administered either 4 mg or 6 mg doses of dapiglutide or a placebo. The weight loss observed at these dosages aligns with outcomes from similar therapies, according to David Kendall, MD, Chief Medical Officer of Zealand Pharma.
The company highlighted the drug's tolerability, with the most common side effects being gastrointestinal in nature, such as reduced appetite and nausea. Importantly, these adverse events were less frequent than those reported in studies of other incretin-based therapies and did not lead to any treatment discontinuations.
Zealand Pharma is also conducting a Phase 1b trial to assess higher doses of dapiglutide, with results expected later in the year. This follows previous phase 1 findings where dapiglutide demonstrated dose-dependent weight loss and delayed gastric emptying in healthy volunteers.
Dapiglutide is designed not only to promote weight loss but also to improve intestinal barrier function, potentially addressing comorbidities associated with obesity-induced low-grade inflammation.
The company, which specializes in peptide-based medicines, plans to present detailed findings on cardiovascular risk and inflammatory markers from the DREAM trial at an upcoming scientific meeting.
This announcement is based on a press release statement from Zealand Pharma. The company continues to explore the therapeutic potential of dapiglutide, with more comprehensive results anticipated in the second half of 2024.
InvestingPro Insights
As Zealand Pharma A/S (NASDAQ:ZEAL) advances its clinical trials for dapiglutide, the company's financial health and market performance are critical for investors monitoring its progress. According to the latest data from InvestingPro, Zealand Pharma holds a market capitalization of $5.46 billion USD. Despite the challenges often faced by biotech companies in bringing new drugs to market, Zealand Pharma has shown remarkable revenue growth, with an increase of 222.76% for the last twelve months as of Q1 2024. This growth is a testament to the company's potential and the market's response to its innovative therapies.
However, the financial metrics also reveal areas of concern. The company's P/E ratio stands at -48.68, and it has adjusted to -60.73 in the last twelve months as of Q1 2024, indicating that investors may have reservations about the company's current profitability relative to its share price. Additionally, the gross profit margin is reported at -101.22%, underscoring the costs associated with research and development that exceed the revenue at this stage. These figures reflect the inherent risks of investing in biotech firms that are in the process of developing new drugs.
For investors looking to make informed decisions about Zealand Pharma, there are additional InvestingPro Tips available. For instance, understanding the company's fair value can provide insights into whether the current stock price reflects its long-term potential. InvestingPro's fair value estimate stands at $53.24 USD, which differs from analyst targets. Investors can access a wealth of additional tips by subscribing to InvestingPro, and by using the coupon code PRONEWS24, they can enjoy a 10% discount on a yearly or biyearly Pro and Pro+ subscription. There are currently 17 additional tips listed in InvestingPro that can further guide investment decisions regarding Zealand Pharma.
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