As the market for novel weight-loss drugs expands, more pharmaceutical companies are entering the space to challenge industry giants Novo Nordisk and Eli Lilly. Danish pharmaceutical firm Zealand is developing a weight-loss drug that reportedly offers higher quality weight reduction with less muscle loss and fewer side effects compared to GLP-1-based treatments.
Zealand is working on two weight-loss drugs: Dapiglutide, a GLP-1/GLP-2 drug, and Petrelintide, an Amylin-based drug. Dapiglutide is similar to existing drugs such as Semaglutide from Novo Nordisk and Tirzepatide from Eli Lilly. However, CEO Adam Steensberg is more optimistic about Petrelintide, describing it as the "crown jewel." Early trial data reveals that Petrelintide can lead to an average weight loss of 8.6% for patients.
Unlike GLP-1 drugs, which mimic gut hormones to suppress appetite, Amylin-based Petrelintide enhances the feeling of fullness by mimicking hormones secreted with insulin in the pancreas. This approach promises a more pleasant weight-loss experience with fewer side effects.
Despite the effectiveness of Novo Nordisk's and Eli Lilly's drugs in weight management, they are associated with significant side effects, including muscle loss and increased suicidal thoughts. Clinical data show that 25% of the weight lost using Eli Lilly's drugs comes from lean body mass, including muscle, while Novo Nordisk's figure reaches 40%. Regeneron has also cautioned that unresolved muscle loss could outweigh the benefits of GLP-1 drugs and is working on alternative solutions.
The rising demand for weight-loss drugs is expected to push the industry's value to $200 billion by 2030. Analysts like Emily Field from Barclays highlight the potential for market fragmentation as companies focus on niche areas, such as combating muscle loss. However, Field notes Zealand's limited scale may hinder its independent efforts, prompting the company to seek partnerships with global pharmaceutical players.
