Zealand Pharma (ZEAL) Q3 2024 earnings summary

Executive summary

• Achieved significant clinical progress in obesity and rare disease programs, with petrelintide and dapiglutide showing strong early-stage results and advancing to Phase 2b trials; survodutide received FDA Breakthrough Therapy Designation and entered Phase 3 for MASH via Boehringer Ingelheim partnership.

• Rare disease assets dasiglucagon and glepaglutide are progressing toward key US regulatory milestones, with commercial preparations underway and launches targeted for 2025 pending approvals.

• Cash position significantly strengthened to DKK 9.2 billion as of September 30, 2024, following major equity raises and EIB loan disbursements, supporting ongoing R&D and commercial activities.

Financial highlights

• Revenue for the first nine months of 2024 was DKK 53.6 million, mainly from Novo Nordisk license agreements, down from DKK 319.6 million year-over-year.

• Operating expenses reached DKK 919 million, with 72% allocated to R&D, reflecting increased investment in obesity and rare disease pipelines.

• Net loss for the period was DKK 788 million, compared to a loss of DKK 439 million in the prior year.

• Net financial items were DKK 81 million, mainly from higher interest income due to increased liquidity.

• Cash, cash equivalents, and marketable securities totaled DKK 9.2 billion as of September 30, 2024.

Outlook and guidance

• 2024 net operating expenses are expected at DKK 1,250–1,350 million, unchanged from previous guidance.

• No revenue guidance provided due to uncertainty in timing and size of new agreements.

• Multiple Phase 2b and Phase 1b trials for petrelintide and dapiglutide, and regulatory milestones for dasiglucagon and glepaglutide, are expected in late 2024 and 2025.