Zealand Pharma valuation hinged on Lyxi/Lanti 'fixflex'

The recent European Medicine Agency advisory committee, CHMP, positive opinion for French drug major Sanofi’s diabetes drug candidate Lyxumia (lixisenatide; The Pharma Letter November 19), its expected US New Drug Application filing next month and the potential European Union approval in first-quarter 2013, create a likely hat trick of positive catalysts for Denmark’s Zealand Pharma (Nasdaq OMX: ZEAL), which discover the GLP-1 receptor agonist, say analysts at Edison Equity Research.

However, a focus on monotherapy overlooks the fact that Zealand’s prospects rely more heavily on the “Fixflex” Lyxumia/Lantus combination. This is falling behind Novo Nordisk’s competing pairing of Tresiba (insulin degludec) – itself newly launched as monontherapy – with Victoza (liraglutide). This, combined with the relative advantages of Tresiba over Lantus, may constrain its commercial potential, the analysts note.

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