Jefferies cuts Zealand Pharma on distance to key catalysts

Zealand Pharma A/S

14/07/2026 09:57

** Jefferies downgrades Danish biotech Zealand Pharma ZELA.CO to "hold" from "buy" due to an absence of "value-crystallising" catalysts during H2
** The broker notes reduces survodutide's probability success to 40% from 60% as liver disease trial readouts are now more crucial to de-risk the drug
** Survodutide, Zealand's injectable obesity drug, saw a quarter of patients quitting its trial whose results the biotech published in June
** "However, 2H readouts are unlikely to materially crystallise this value," Jefferies says, noting more important data is not expected until 2027-2028
** While long-term valuation remains attractive, the broker adds that "competitor newsflow will be tough to spin positively" and is unlikely to build investor confidence in Zealand's petrelintide programme
** Jefferies applies a 35% discount factor to the company's valuation to reflect risks associated with the lack of major catalysts over the next six to 12 months
** Nine out of 18 analysts rate the stock "strong buy"/"buy", eight "hold", one "sell" - LSEG data

 (Reporting by Vera Dvorakova)
 ((vera.dvorakova@thomsonreuters.com))