Zealand Pharma Stock Slides After Jefferies Downgrade on Survodutide Concerns

Shares of Zealand Pharma fell 2.0% on Tuesday after analysts at Jefferies downgraded the stock, citing a lack of significant near-term catalysts and persistent concerns over the clinical data for its key obesity drug candidate, survodutide.

Jefferies Cites Lack of Catalysts

In a note to clients, Jefferies downgraded Zealand Pharma to Hold from a previous Buy rating. The firm also significantly reduced its price target on the stock to DKK 320 from DKK 505, a cut of approximately 37%.

The downgrade was driven by two primary factors:

• A perceived absence of major value-driving events for the company in the second half of 2026.
• A reduced probability of success for survodutide, which was lowered to 40% from 60%.

Survodutide Under Scrutiny

Ad

Survodutide, a glucagon/GLP-1 dual agonist being co-developed with Boehringer Ingelheim, has faced increasing analyst scrutiny. The concerns stem from Phase III data presented in June at the American Diabetes Association meeting, which raised questions about the drug's tolerability profile.

Jefferies' action follows a similar move last month by Wolfe Research, which also removed its Outperform rating. Analysts have highlighted a placebo-adjusted patient discontinuation rate for survodutide that was notably higher than those observed in trials for rival therapies from market leaders Novo Nordisk and Eli Lilly.

Market Outlook

With no company-specific news or earnings released Tuesday, the Jefferies downgrade was the clear driver of the stock's decline. The move adds to a broader risk-off sentiment in the market, with Copenhagen's OMXC25 index and major U.S. indexes also trading lower.

Multiple investment banks, including Jefferies and UBS, have suggested that a significant positive inflection point for Zealand Pharma's stock is unlikely before 2027. This shifts the near-term focus to the company's pipeline, particularly petrelintide, an amylin analog being advanced into Phase 3 trials with Roche.