Zealand Pharma (ZEAL) Q2 2024 earnings summary

Executive summary

• Achieved strong H1 2024 with significant R&D progress in obesity and rare disease pipelines, highlighted by positive clinical data for petrelintide and dapiglutide, and a major DKK 7 billion equity raise to accelerate development.

• Survodutide, partnered with Boehringer Ingelheim, showed strong Phase II results in MASH, type 2 diabetes, and obesity, and is advancing to Phase III.

• Regulatory milestones expected in H2 2024 for dasiglucagon (CHI) and glepaglutide (SBS-IF), with FDA PDUFA dates set for October and December 2024.

• Zegalogue® (dasiglucagon) received EU approval for severe hypoglycemia in diabetes.

• Addition of Eric Cox as Chief Commercial Officer to strengthen commercial capabilities.

Financial highlights

• H1 2024 revenue was DKK 49.2 million, mainly from license agreements with Novo Nordisk.

• Operating expenses reached DKK 559 million, with 72% allocated to R&D, primarily for obesity and rare disease assets.

• Net loss for H1 2024 was DKK 521.4 million, compared to DKK 513.1 million in H1 2023.

• Cash, cash equivalents, and marketable securities totaled DKK 9.7 billion as of June 30, 2024, reflecting the equity raise and EIB loan.

• Gross profit improved to DKK 35.1 million from DKK 24.0 million year-over-year.

Outlook and guidance

• Updated 2024 net operating expense guidance to DKK 1.25–1.35 billion, up from DKK 1.1–1.2 billion, reflecting increased investment in obesity assets.

• Revenue guidance remains unspecified due to uncertainty in timing and size of milestone payments.

• Well-funded to progress pipeline, with cash runway extended beyond 2027, not including potential partnership milestones.

• Phase 2b trial for petrelintide in obesity to start in H2 2024; higher-dose dapiglutide data expected H2 2024 and H1 2025.

• Focus remains on entering partnerships to maximize long-term value creation.