Survodutide Trial Results Send Zealand Pharma Stock Plummeting

Zealand Pharma's stock dropped by as much as 12% on Thursday after new trial results for its obesity drug survodutide were released.

The Phase III SYNCHRONIZE-2 trial tested survodutide in adults with obesity or overweight who also have type 2 diabetes. Patients taking survodutide lost up to 13.1% of their body weight on average, compared to just 3.1% for those on a placebo.

However, investors were focused on the side effects, which included nausea, vomiting, diarrhea, and constipation in 18% of patients taking survodutide. Only 1.2% of the placebo group dropped out due to gastrointestinal side effects.