Zealand Pharma Outlines Ambitious 5-Year Obesity Drug Strategy Amidst Growing Competition
Celsopupo | Istock | Getty Images
Zealand Pharma on Thursday outlined an ambitious five-year strategy for it’s anti-obesity portfolio Thursday, spotlighting how growing competition from smaller players is tightening the race for market leaders novo Nordisk and Eli Lilly as more of these medicines near market entry.
The new strategy, “Metabolic Frontier 2030,” comes as Zealand shares have dropped 29% year to date as investors are betting the market will fragment, with fewer singular winners than they were 18 months ago at the peak of the weight loss drug frenzy.
Ahead of its Capital Markets Day on Thursday, the Danish drugmaker said it now targets five drug launches, at least 10 clinical pipeline programs and industry-leading cycle times by 2030.
The strategy will combine strategic partnerships, accelerated drug growth, and expanded research capabilities to build the world’s most valuable metabolic health pipeline, Zealand Pharma said in a statement.
One of Zealand’s most promising drugs under development is petrelintide which targets the pancreatic amylin hormone – different from the GLP-1 gut hormone targeted by Novo’s Wegovy and Lilly’s Zepbound. The drug, developed in partnership with Roche, has shown more moderate side effects than current injectables in early-stage clinical trials.
Mid-stage data on petrelintide are due early next year, while data on its dual GLP-1 agonist called survodutide will read out throughout 2026.
Fewer standout winners
Novo Nordisk and Eli Lilly currently dominate the market for weight loss drugs and have a head-start on their competition, having developed the onyl Food and Drug
novo Nordozyme and Viking Therapeutics: Beyond the GLP-1 Hype
The remarkable success of Novo Nordisk and Eli Lilly in the weight-loss drug market is undeniable. But investors focusing solely on these giants might be missing opportunities.Analysts are starting to point to companies like Novo Nordozyme and Viking Therapeutics as potential future players.
Novo Nordisk’s Wegovy and Lilly’s Mounjaro have dominated headlines, driving significant stock gains for both companies. However, morningstar analyst Karen Andersen believes the market is undervaluing innovation happening outside of these two leaders. She predicts Lilly’s market share, while ample, will eventually stabilize as Novo Nordisk and other competitors introduce new, next-generation drugs.
Andersen specifically notes that the market isn’t fully appreciating the potential of these upcoming drugs. This suggests there’s room for growth and profit in companies developing alternative therapies, like Novo Nordozyme and Viking Therapeutics. Investors should consider these companies as potential beneficiaries of the expanding weight-loss market, even as the current leaders maintain a strong position.