Shares of Zealand Pharma dropped after new late-stage trial results for its experimental obesity drug, survodutide, highlighted tolerability issues despite promising efficacy in weight loss and blood sugar control.
Zealand Pharma shares fell sharply on Thursday after new late-stage data on survodutide, its experimental obesity treatment, appeared to reassure investors on efficacy less than it did on tolerability. According to CoinCentral’s report on the company’s Phase III SYNCHRONIZE-2 trial, the stock dropped by as much as 12% after the results were released.
The trial tested survodutide in adults living with obesity or overweight and type 2 diabetes, and the headline figures were strong: patients on the drug lost up to 13.1% of their body weight over 76 weeks, versus 3.1% for placebo. Nearly 80% of treated patients achieved at least 5% weight loss, and the drug also cut HbA1c, a standard measure of blood sugar control, by as much as 1.21 percentage points from a starting level of 7.4%. The study met both of its main goals, according to the report and the results shared by Zealand.
But the market’s focus quickly shifted to side effects and withdrawals. CoinCentral said 18% of patients taking survodutide stopped treatment because of gastrointestinal problems, including nausea, vomiting, diarrhoea and constipation, compared with 1.2% in the placebo group. The company said most cases were mild to moderate, with many of the dropouts occurring during dose escalation, when patients were moved up to higher doses.
Survodutide is a dual-action drug that works on both glucagon and GLP-1 receptors, a mechanism intended to support weight loss while improving blood sugar control and potentially benefiting liver health. Zealand licences the drug to Boehringer Ingelheim, which is responsible for global development and potential commercialisation. The programme remains experimental and has not yet been approved by regulators.
The wider development effort is still progressing. According to the materials cited by CoinCentral, Boehringer is running another Phase III study, SYNCHRONIZE-T2D, focused on glucose control in type 2 diabetes, while cardiovascular outcomes data from SYNCHRONIZE-CVOT are expected later this year. Earlier related studies have also pointed to potential metabolic benefits: a smaller trial, SYNCHRONIZE-1, reported reductions in visceral and liver fat in people without type 2 diabetes, and a separate Phase 3 programme in metabolic dysfunction-associated steatotic liver disease found gastrointestinal adverse events remained common and sometimes led to treatment discontinuation.
Disclaimer: This content is for informational purposes only and is not intended to be a substitute for professional medical judgment, advice, diagnosis, or treatment.
