Zealand Pharma (OTCPK:ZLDP.Y) FY Conference Transcript

Zealand Pharma Conference Call Summary Company Overview - Company: Zealand Pharma - Industry: Biotech, focusing on metabolic health and obesity treatment Core Points and Arguments - Zealand Pharma launched its Metabolic Frontier 2030 strategy, aiming to tackle the obesity pandemic and its related diseases, marking a pivotal year in the company's history [2][3] - The company aims to become a leading biotech in metabolic health, with ambitions to launch significant new medicines, including Survodutide (in partnership with Boehringer Ingelheim) and Petrelintide (in partnership with Roche) [3][4] - Zealand has a competitive advantage due to its 25 years of experience in metabolic health and peptides, combined with proprietary data that can enhance AI and machine learning capabilities in drug development [5][6] - The company has a strong financial position with over DKK 2.5 billion in cash and near-term milestones exceeding $1.2 billion, allowing it to fund its journey towards profitability [6] Pipeline and Clinical Development - Zealand expects multiple clinical data readouts in the coming year, including Petrelintide phase 2 data and Survodutide phase 3 studies [7][8] - The company anticipates launching five new products over the next five years, targeting obesity and rare diseases like congenital hyperinsulinism and short bowel syndrome [10] - Petrelintide aims to provide a weight loss of 15%-20%, which aligns with patient expectations and offers a more tolerable weight loss experience compared to existing therapies [20][21] Market Dynamics and Challenges - The obesity pandemic is described as a significant healthcare challenge, with over 5 million deaths attributed to obesity, highlighting the urgency for effective treatments [11] - Current GLP-1 therapies have a low adherence rate, with only 2%-4% of the U.S. population on treatment, primarily due to side effects and cost [12][15] - Zealand emphasizes the need for innovative solutions that not only promote weight loss but also ensure long-term adherence to treatment [15][16] Partnerships and Collaborations - Zealand's partnership with Roche for Petrelintide is characterized as a strong collaboration, with a 50/50 profit share and Roche handling manufacturing investments [22][23] - The partnership with Boehringer Ingelheim focuses on Survodutide, which is expected to lead in the GLP-1 space and has the potential to address conditions like MASH (metabolic dysfunction-associated steatotic liver disease) [24][25] Research and Development Investment - Zealand plans to invest DKK 5 billion in research over the next five years, significantly increasing its commitment to building a valuable metabolic health pipeline [29] - The company is exploring additional partnerships to enhance its pipeline and aims to develop 10 clinical candidates within the next five years [30] Future Outlook - Zealand Pharma is positioned for a transformational year with significant clinical data readouts and a focus on addressing the obesity crisis through innovative therapies [30] - The company is committed to developing alternatives to GLP-1s, emphasizing the importance of patient experience and adherence in chronic disease management [50][52] Additional Insights - Zealand acknowledges the need for a shift in how obesity treatments are perceived, moving from a focus on weight loss numbers to the overall patient experience and long-term health benefits [31][32] - The company is also considering the development of a once-monthly Amylin therapy and oral small molecules, indicating a commitment to expanding treatment options in the obesity market [51][52]