BofA rates Zealand Pharma 'buy' as amylin could offer alternative obesity play
** BofA Global Research initiates Zealand Pharma ZELA.CO with "buy" and PT of DKK 1,100, highlighting the Danish biotech firm's pipeline drug Petrelintide as an alternative obesity play
** Zealand Pharma's shares rise 4.5%
** It calls Petrelintide, an amylin analog in a phase 1 trial, a "GLP1 without the vomiting" as it could offer much better tolerability and competitive weight loss results
** "Even though amylin is a novel mechanism in obesity, we are confident in the potential differentiation given strong data to date across the class," BofA says
** It is also bullish on Petrelintide vs Novo Nordisk's NOVOb.CO Cagrilitide and other competing amylins in early development
** BofA sees Petrelintide peak sales at $8 bln, with 30% penetration in the GLP1-intolerant or failure market, but says it will likely be much lower at 2% in the frontline market
** Out 11 analysts that cover Zealand Pharma, eight rate it "strong buy"/"buy", two "hold" and one "strong sell"
Reporting by Marta Frąckowiak
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