BUZZ-JPM sees Zealand Pharma's share underperformance as buying opportunity

Reuters12-20
BUZZ-JPM sees Zealand Pharma's share underperformance as buying opportunity

** J.P.Morgan sees Zealand Pharma's ZELA.CO share price drop on Friday, triggered by disappointing Novo's NOVOb.CO CagriSema obesity drug trial results, as a buying opportunity

** The brokerage still sees potential in Zealand's obesity drug petrelintide in 2025, and rate the stock "overweight"

** Commenting on CagriSema results, it notes that while combo (amylin + semaglutide) was below expectations, the amylin mono headline data met expectations and showed good tolerability

** This bodes well for petrelintide, Zealand's investigational long-acting amylin analog, which showed stronger efficacy in Phase I, JPM says

** Zealand's CEO told Reuters that Cagrisema results support the company's monotherapy approach

** JPM forecasts $10 billion peak potential for petrelintide, assuming it takes 1/3 market share of GLP-1 intolerant patients

** It sees a good chance of Zealand partnering petrelintide by the end of 2025

** Zealand Pharma shares are down 15% at 0200 pm GMT, on track for worst day since March 2020

(Reporting by Vera Dvorakova)

((vera.dvorakova@thomsonreuters.com))

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