Shares of the Danish biotech company Zealand Pharma (OTC:ZLDPF) had crashed nearly 23%, as of 12:10 p.m. ET today, after a late-stage study of one of its new weight-loss drugs showed disappointing results.<\/p>\n
The drug being tested, Servodutide, is a GLP-1 dual-receptor agonist used to treat obesity and associated conditions.<\/p>\n
The late-stage study showed that a high percentage of participants dropped out due to adverse effects.<\/p>\n
This is good news for companies like Eli Lilly and Novo Nordisk, who currently dominate the GLP-1 space<\/a>. Here\u2019s why.<\/p>\n Image source: Getty Images.<\/p>\n What the study showed <\/p>\n On the positive front, the phase III trial of Servodutide showed that over 84% of participants in the 76-week study achieved at least a 30% relative reduction in liver fat.<\/p>\n Furthermore, participants showed sustained weight loss of up to 16.6%.<\/p>\n However, 19% of participants dropped out due to gastrointestinal side effects, including nausea, vomiting, diarrhea, and constipation.<\/p>\n Over 40% of people in the study reported vomiting, according to analysts from Barclays.<\/p>\n \u201cOverall, we view the safety\/tolerability as disappointing for [Zealand], despite data confirming some interesting body-composition\/liver signals,\u201d Barclays analyst Yihan Li wrote in a research note today.<\/p>\n \u201cA 19% treatment discontinuation rate due to… adverse events… is not a rounding error, and nausea, vomiting, diarrhea, and constipation incidence at the levels reported here sit well above what we consider commercially viable against [rival drugs] tirzepatide and semaglutide,\u201d Citigroup analysts wrote in a research note, according to CNBC.<\/p>\n Why it\u2019s good news for Eli Lilly and Novo Nordisk <\/p>\n The simple answer is that Zealand\u2019s study shows that both dominant players likely still have a significant lead in the space and can retain market share<\/a>.<\/p>\n In fact, shares of Eli Lilly, which now has a market cap of over $1 trillion, traded roughly 2.5% higher as of this writing due to company-specific news.<\/p>\n At the American Diabetes Association meeting in New Orleans, Eli Lilly presented data from two trials of its new weight-loss drug, Retatrutide.<\/p>\n Unlike Eli Lilly\u2019s first two generations of GLPs, Retatrutide is a weekly low-dose, 4 mg GLP-1 injection that is a triple-receptor agonist attempting to suppress one\u2019s appetite, improve metabolism, and burn fat.<\/p>\n Only about 4% of participants in the Retatrutide studies dropped out. Participants also achieved an average weight loss of roughly 19%, similar to Eli Lilly\u2019s older GLP, Zepbound.<\/p>\n Analysts were broadly positive on the new data and said they could see Eli Lilly extending its lead in the obesity space.<\/p>\n Zealand\u2019s struggles are certainly good news for both Eli Lilly and Novo Nordisk, as less competition reduces pricing pressure.<\/p>\n However, the two companies have seen their stocks move in opposite directions over the past year, with Eli Lilly\u2019s surging and Novo Nordisk\u2019s plunging.<\/p>\n Novo Nordisk has been dealing with increasing competition, and its recent pipeline of weight-loss drugs has not impressed the market.<\/p>\n Meanwhile, Eli Lilly has rocketed higher over the past year, driven by a more diversified pipeline and success with new GLP-1 receptors.<\/p>\n The recent success with Retatrutide is yet another reason to make Eli Lilly the stock to own in the GLP space.<\/p>\n Should you buy stock in Zealand Pharma A\/s right now? <\/p>\n Before you buy stock in\u00a0Zealand Pharma A\/s, consider this:<\/p>\n The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/a>\u00a0for investors to buy now\u2026 and\u00a0Zealand Pharma A\/s\u00a0wasn\u2019t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.<\/p>\n Consider when\u00a0Netflix\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $443,191!*\u00a0Or\u00a0when\u00a0Nvidia\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $1,258,838!*<\/p>\n That performance is why people listen. With a track record of\u00a0beating the S&P 500 by nearly 5x,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of June 8, 2026. <\/p>\n Citigroup is an advertising partner of Motley Fool Money. Bram Berkowitz<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool recommends Barclays Plc and Novo Nordisk. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"Person](\"https:\/\/www.europesays.com\/dk\/wp-content\/uploads\/2026\/06\/4c0930b54ec22d118dbd049ce91faf46.jpeg\")
Person working at desk with multiple monitors. <\/p>\n