Zealand Plunge Pulls Roche Lower After Obesity Shot Disappoints

An experimental obesity shot from Roche Holding AG and Zealand Pharma A/S failed to meet industry expectations in a study, casting doubt on their prospects of competing in the fast-growing market and sending their shares lower.

The duo said the petrelintide shot delivered 10.7% weight loss after 42 weeks of treatment, well short of results for existing treatments from Eli Lilly & Co. and Novo Nordisk A/S. Even though the drug showed side effects so mild that they were similar to placebo, that disappointed investors looking at weight-loss percentages as their main comparison.