Zealand Pharma (ZEAL) Q4 2024 earnings summary

Executive summary

• 2024 marked a transformational year with significant clinical progress in the obesity pipeline, notably with petrelintide, dapiglutide, and survodutide, and advancement of rare disease and inflammation programs.

• The company expanded investments in mid-to-late-stage obesity assets and early-stage peptide therapeutics for inflammation, aiming to become a key player in the obesity market.

• Major milestones included initiation of large phase II-B trials for petrelintide and dapiglutide, and survodutide's entry into phase III for MASH and obesity.

• Launched a dedicated sustainability strategy, increased employee engagement, and achieved 30% organizational growth.

Financial highlights

• 2024 revenue was DKK 63 million, mainly from a license and development agreement for Zegalogue and Novo Nordisk.

• Net operating expenses reached DKK 1,327 million, with R&D expenses accounting for 69% of total expenses.

• Net financial items showed a gain of DKK 189 million, mainly from interest income.

• Net result for the period was a loss of DKK 1,079 million, compared to a loss of DKK 704 million in 2023.

• Cash and equivalents stood at DKK 9 billion at year-end, up DKK 7.4 billion from the start of the year, bolstered by capital raises and EIB loan facility.

Outlook and guidance

• 2025 operating expenses are expected to rise to DKK 2.0–2.5 billion, reflecting increased investment in obesity trials and early-stage research.

• Three large phase II-B trials for obesity assets are planned to be underway by year-end 2025, with multiple clinical milestones and regulatory submissions expected.

• Continued focus on sustainability, with formal commitment to Science Based Targets initiative in 2025.

• Revenue anticipated from existing and new license and partnership agreements.