Zealand Pharma's Survodutide Meets Key Targets in Phase 3 Trial but Sees 19% Discontinuation Rate Due to GI Side Effects
The Danish drugmaker's stock fell sharply after late-stage data showed 19% of patients discontinued survodutide due to gastrointestinal side effects, compared with 2.9% on placebo.
Shares of Zealand Pharma fell as much as 26% on Monday after the company released new data from a late-stage study of its experimental weight-loss drug survodutide. The shares were last seen down 24% and have now declined nearly 50% year-to-date. The Danish drugmaker said survodutide met its key targets in the study.
9% of patients on placebo. More than 40% of patients reported vomiting. Barclays analysts said safety and tolerability remain the key issue.
They noted that the high discontinuation rate and vomiting incidence might limit survodutide's commercial potential as a treatment for obesity or fatty liver disease. Citi analysts wrote that a 19% treatment discontinuation rate due to side effects is not a rounding error.
They added that the levels of nausea, vomiting, diarrhea, and constipation sit well above what they consider commercially viable against rival drugs tirzepatide and semaglutide.
The full survodutide data came about three months after Zealand stock suffered its worst day on record. That earlier trial involved another of the company's experimental anti-obesity drugs that produced lower-than-expected weight loss statistics.
