Zealand Pharma has revealed plans to issue millions of new shares to raise DKK 7 billion ($1 billion) with the objective of advancing its
obesity treatment candidates, following encouraging early-stage data disclosed last week. The Danish pharmaceutical company is set to issue 8,350,000 new ordinary shares at a price of DKK 843 ($120.71) per share, with the completion date expected to be June 28. These shares are scheduled for trading and listing on Nasdaq Copenhagen starting July 1.
This financial move comes in the wake of interim phase Ib data for Zealand's
amylin analog candidate,
petrelintide, which indicated significant weight reduction and good tolerability. Specifically, petrelintide exhibited a mean weight reduction of 8.6% from baseline, compared to a 1.7% reduction in patients on a placebo. Analysts at
Jefferies highlighted that the data suggests Zealand's potential for achieving weight loss results comparable to those of popular
GLP-1 medications from
Eli Lilly and
Novo Nordisk.
The capital raised from this public offering will be directed towards advancing Zealand's obesity programs into Phase IIb clinical trials and beyond. Additionally, the funds will support investments in the chemistry, manufacturing, and control activities for these obesity programs. Zealand also mentioned that its obesity candidates are planned for clinical development in related indications, although it did not elaborate further.
The company anticipates that the funding will facilitate the advancement of its clinical pipeline and help achieve several critical milestones. Zealand is focusing its resources on research and development (R&D) and is engaging in strategic partnerships aimed at future commercialization and co-development efforts.
In the preceding month, Zealand disclosed Phase I data for another obesity candidate, a
GLP-1/
GLP-2 asset named
dapiglutide. A low dose of this investigational drug showed a modest mean weight loss change of 2.9%, compared to 2.2% for patients receiving a placebo.
Zealand is not alone in targeting the profitable weight-loss market and seeking to raise funds. Earlier this month,
Structure Therapeutics, based in the Bay Area, announced a public offering worth $476 million following positive mid-stage results for its oral GLP-1 candidate.
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