Zealand Pharma A/S
OTC:ZLDPF
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Intrinsic Value
The intrinsic value of one ZLDPF stock under the Base Case scenario is 47.0361 USD. Compared to the current market price of 114.3625 USD, Zealand Pharma A/S is Overvalued by 59%.
The Intrinsic Value is calculated as the average of DCF and Relative values:
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Zealand Pharma A/S
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Fundamental Analysis
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Zealand Pharma A/S is a dynamic biotechnology company based in Denmark, on a mission to create innovative peptide-based therapeutics that address unmet medical needs, particularly in the fields of diabetes, obesity, and gastrointestinal disorders. Founded in 1999, Zealand's commitment to research excellence has positioned it at the forefront of peptide drug discovery and development. Its proprietary pipeline includes promising candidates such as dasiglucagon, an ultra-rapid treatment for diabetes, and ezotic for obesity management, illustrating the company's focus on high-impact therapeutic solutions that aim to improve the quality of life for patients worldwide. As an investor, understandin...
Zealand Pharma A/S is a dynamic biotechnology company based in Denmark, on a mission to create innovative peptide-based therapeutics that address unmet medical needs, particularly in the fields of diabetes, obesity, and gastrointestinal disorders. Founded in 1999, Zealand's commitment to research excellence has positioned it at the forefront of peptide drug discovery and development. Its proprietary pipeline includes promising candidates such as dasiglucagon, an ultra-rapid treatment for diabetes, and ezotic for obesity management, illustrating the company's focus on high-impact therapeutic solutions that aim to improve the quality of life for patients worldwide. As an investor, understanding Zealand's strategic partnerships and collaborations with major pharmaceutical organizations underscores its ability to leverage expertise and resources, thereby accelerating the development of its product offerings.
With a strong foundation built on scientific innovation, Zealand Pharma has garnered significant attention from the investment community, reflecting its robust growth potential. The company’s publicly traded status on NASDAQ Copenhagen allows investors to participate in its journey as it aims for regulatory approvals and commercialization of its lead candidates. Zealand's agile approach to the ever-evolving landscape of biotechnology, combined with a commitment to sustainable practices, positions it as a forward-thinking player in the industry. Thus, for investors, Zealand Pharma presents a compelling opportunity within the healthcare sector, where advancements in biopharma are increasingly critical in addressing global health challenges.
Zealand Pharma A/S is a biotechnology company focused on the development of peptide-based therapeutics. Their core business segments typically include:
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Diabetes and Metabolism: This segment focuses on developing treatments for diabetes and related metabolic disorders. Zealand Pharma has a range of products that aim to manage blood sugar levels and improve overall metabolic health.
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Gastrointestinal Disorders: Zealand is involved in creating therapies for various gastrointestinal diseases, which can include conditions like irritable bowel syndrome and other digestive disorders.
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Rare Diseases: The company also targets rare conditions that often lack effective treatments. This segment reflects their commitment to addressing unmet medical needs in specific patient populations.
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Partnerships and Collaborations: Zealand Pharma often engages in collaborations with larger pharmaceutical companies, leveraging their expertise in drug design and development to bring new therapies to market. This segment contributes to their revenue through partnerships and licensing agreements.
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Research and Development (R&D): R&D is a critical aspect of their operations, focusing on the innovation of new peptide-based drugs and improving existing products.
In summary, Zealand Pharma A/S operates in the biopharmaceutical space with a focus on diabetes, metabolic diseases, gastrointestinal disorders, and rare diseases while maintaining a robust pipeline of potential new therapies through ongoing research and strategic partnerships.
Zealand Pharma A/S possesses several unique competitive advantages that help it stand out in the biopharmaceutical industry:
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Specialization in Peptide Therapeutics: Zealand Pharma specializes in the development of peptide-based drugs, which allows the company to leverage its expertise in this niche area. The unique properties of peptides can lead to more effective and targeted therapies compared to traditional small-molecule drugs.
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Strong Pipeline of Innovative Products: The company has a robust pipeline, including novel therapeutics for various indications such as diabetes, obesity, and gastrointestinal disorders. This pipeline is a result of significant investment in research and development, which enhances its ability to compete.
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Collaborative Partnerships: Zealand Pharma has formed strategic collaborations with larger pharmaceutical companies, which can provide not only funding but also access to broader markets and distribution channels. These partnerships enhance their research capabilities and speed up the development processes.
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Experienced Management Team: The leadership team brings a wealth of experience in drug development, commercialization, and capital markets. This expertise can help navigate regulatory pathways more effectively, reduce time to market, and manage investor relations efficiently.
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Focus on Unmet Medical Needs: Zealand's focus on addressing significant unmet medical needs positions it well in the marketplace. Treatments for chronic conditions, which are on the rise globally, reflect a growing demand that Zealand aims to fulfill.
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Strong Intellectual Property Portfolio: The company's robust patent strategy protects its discoveries and innovations, providing a competitive edge by safeguarding its technologies and products against imitation from rivals.
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Scalable Business Model: Zealand Pharma's model can be scaled effectively through its partnerships and collaborations, allowing for flexibility in navigating market changes and maximizing growth opportunities.
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Commitment to Sustainability: In an era where corporate responsibility is increasingly scrutinized, Zealand Pharma’s commitment to sustainable practices can enhance its brand reputation, attracting customers and investors who value corporate ethics.
By capitalizing on these advantages, Zealand Pharma A/S can enhance its competitive position in the market and work towards sustainable growth in the biopharmaceutical sector.
Zealand Pharma A/S, like many companies in the biotechnology and pharmaceutical sectors, faces several risks and challenges that could impact its operations and growth prospects. Here are some of the key risks and challenges:
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Regulatory Risks: The pharmaceutical industry is heavily regulated. Zealand Pharma must navigate complex regulatory environments in different countries. Delays in regulatory approval, changes in regulations, or non-compliance can adversely affect their product launches and market access.
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Clinical Trial Risks: The success of Zealand Pharma's product candidates relies on the outcomes of clinical trials. Failure to demonstrate efficacy or safety in these trials can lead to significant financial losses and damage the company's reputation.
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Market Competition: The pharmaceutical market is highly competitive, with numerous companies, including large multinationals and smaller biotech firms, vying for market share. The entry of new competitors or the launch of alternative therapies can impact Zealand Pharma's market position.
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Financing and Funding Challenges: Biotech companies often require substantial capital to fund research and development. Securing funding through investments or partnerships can be challenging, particularly in a shifting economic environment.
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Intellectual Property Risks: Protecting intellectual property (IP) is crucial for establishing a competitive edge. Zealand Pharma must navigate potential patent challenges, infringement claims from competitors, and the risk of its patents being invalidated.
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Market Adoption and Commercialization: The successful commercialization of new therapies depends on market acceptance and physician adoption. Factors such as pricing, reimbursement policies, and competition can affect sales volumes.
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Supply Chain and Manufacturing Challenges: Global supply chain disruptions, which can be caused by geopolitical issues, pandemics, or other crises, may impact the availability of raw materials and the production process.
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Economic Factors: Changes in economic conditions, such as inflation, interest rates, and healthcare budget constraints, can affect funding availability and market demand for new therapies.
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Public Perception and Ethical Concerns: The biotech and pharmaceutical industries face scrutiny regarding pricing, access to medications, and ethical considerations in research. Negative publicity can harm the company's reputation and sales.
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Talent Acquisition and Retention: The biotech sector is highly competitive for skilled professionals. Attracting and retaining top talent in research, development, and commercialization can be a challenge.
In summary, Zealand Pharma A/S must navigate a complex landscape of regulatory hurdles, clinical trial uncertainties, competitive pressures, and economic volatility while maintaining effective operations and commercial strategies to succeed in the near future.
Revenue & Expenses Breakdown
Zealand Pharma A/S
Balance Sheet Decomposition
Zealand Pharma A/S
Current Assets | 9.1B |
Cash & Short-Term Investments | 8.9B |
Receivables | 214.1m |
Other Current Assets | 803k |
Non-Current Assets | 1B |
Long-Term Investments | 837m |
PP&E | 146.3m |
Intangibles | 12m |
Other Non-Current Assets | 12.6m |
Current Liabilities | 257.2m |
Accounts Payable | 227.3m |
Other Current Liabilities | 29.9m |
Non-Current Liabilities | 502.4m |
Long-Term Debt | 360.1m |
Other Non-Current Liabilities | 142.2m |
Earnings Waterfall
Zealand Pharma A/S
Revenue
|
368m
DKK
|
Cost of Revenue
|
-33.3m
DKK
|
Gross Profit
|
334.7m
DKK
|
Operating Expenses
|
-1.1B
DKK
|
Operating Income
|
-731.7m
DKK
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Other Expenses
|
19.7m
DKK
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Net Income
|
-712m
DKK
|
Free Cash Flow Analysis
Zealand Pharma A/S
DKK | |
Free Cash Flow | DKK |
Zealand Pharma showcased robust performance in the first half of 2024. The company reported a revenue of DKK 49 million, mainly from their agreement with Novo Nordisk. A successful equity raise of DKK 7 billion strengthened their financial position, allowing them to update their expense guidance to DKK 1.25-1.35 billion. Zealand presented positive trial results for petrelintide, targeting obesity and rare diseases, and highlighted ongoing regulatory advancements. Future investments will expand their obesity-related studies and support pre-commercial activities for key assets like dasiglucagon and glepaglutide.
What is Earnings Call?
ZLDPF Profitability Score
Profitability Due Diligence
Zealand Pharma A/S's profitability score is 37/100. The higher the profitability score, the more profitable the company is.
Score
Zealand Pharma A/S's profitability score is 37/100. The higher the profitability score, the more profitable the company is.
ZLDPF Solvency Score
Solvency Due Diligence
Zealand Pharma A/S's solvency score is 75/100. The higher the solvency score, the more solvent the company is.
Score
Zealand Pharma A/S's solvency score is 75/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ZLDPF Price Targets Summary
Zealand Pharma A/S
According to Wall Street analysts, the average 1-year price target for ZLDPF is 154.3936 USD with a low forecast of 120.5559 USD and a high forecast of 173.2692 USD.
Dividends
Current shareholder yield for ZLDPF is .
Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?
Profile
Country
Industry
Market Cap
Dividend Yield
Description
Zealand Pharma A/S is a biotechnology company, which engages in the discovery, design and development of peptide based medicines. The firm's pipeline comprises two implementation areas: Cardio-metabolic diseases and Other indications. The Cardio-metabolic diseases area includes medicines for diabetes and obesity treatment, such as Lyxumia (Lixisenatide), Lyxumia/Lantus, ZP2929 and Danegaptide. The Other indications area offers ZP1848, Elsiglutide and ZP1480 (ABT-719) drugs for inflammatory bowel disease, chemotherapy-induced diarrhea and acute kidney injury treatment. Furthermore, the Company collaborates with a number of partners, such as Sanofi, Helsinn, Boehringer Ingelheim, Abbvie and Eli Lilly.
Officers
The intrinsic value of one ZLDPF stock under the Base Case scenario is 47.0361 USD.
Compared to the current market price of 114.3625 USD, Zealand Pharma A/S is Overvalued by 59%.