Zealand Pharma (ZEAL) Q1 2025 earnings summary

Executive summary

• Entered a transformative partnership with Roche for petrelintide, including 50/50 profit sharing in the US and Europe, co-development of a new combination product, and a total deal value up to USD 5.3 billion with significant upfront and milestone payments.

• Strengthened organizational capabilities and leadership with key hires in obesity research, drug discovery, and expanded functions across research, development, medical affairs, and commercial roles.

• Positioned as a key player in obesity with a differentiated mid- to late-stage pipeline and advancing rare disease programs.

• Well-funded with no need to raise additional capital before reaching profitability.

Financial highlights

• Q1 2025 revenue was DKK 8.1 million, mainly from a Novo Nordisk agreement, down from DKK 15.1 million in Q1 2024.

• Research and development expenses reached DKK 290 million, accounting for 74% of Q1 2025 operating expenses.

• Cash and marketable securities totaled DKK 8.5 billion as of March 31, 2025, expected to rise to DKK 17.7–18 billion after Roche upfront payment in Q2 2025.

• Net financial items of DKK 70 million, mainly from interest income.

• Net operating expenses (excluding Roche transaction costs) rose to DKK 393 million, with a net loss of DKK 313.8 million in Q1 2025.

Outlook and guidance

• 2025 net operating expenses guided at DKK 2–2.5 billion, excluding DKK 200 million in Roche transaction-related costs.

• No need to raise additional capital projected; financial strength expected to support path to profitability.

• Key catalysts in the next 12 months include Roche collaboration initiation, phase 1b dapiglutide results, and phase 2/3 obesity trial readouts in 2026.