Zeiland Pharma shares plunged 30% after Phase 2 trial results for its obesity drug petrelintide showed weaker-than-expected weight loss. The Danish biotech’s ZUPREME-1 trial reported a 10.7% reduction in body weight at week 42, falling short of analysts’ hopes for 12-15% loss. JPMorgan analyst Sophia Graeff Buhl Nielsen noted the data “falls slightly short of expectations,” though she acknowledged potential for improved outcomes in Phase 3 if trial adjustments favor female participants, who showed stronger results.

The trial’s lack of differentiation between dose groups—with weight loss ranging 10.2-10.7%—suggests limited benefits from higher doses, per JPMorgan. Jefferies analyst Lucy Codrington called the efficacy “disappointing” but highlighted petrelintide’s placebo-like tolerability, with minimal gastrointestinal side effects. She compared its potential to Wegovy but cautioned it remains a “second-best” option to Eli Lilly’s elora.

While the stock is expected to remain under pressure short-term, Codrington warned against writing off the drug entirely, emphasizing its safety profile and unresolved Phase 3 potential. Detailed findings will be presented at a scientific conference later this year, leaving room for future optimism.

Market implications include heightened scrutiny of petrelintide’s competitiveness and questions about Zeilanda’s ability to justify its valuation amid intensifying obesity drug rivalry.