HCA Red Flag: Zealand Pharma earns BDKK 3.9, but still burns cash (AI)
HC Andersen Capital
Summary
- Zealand Pharma reported a pre-tax profit of DKK 4,006 million for Q2 2026, surpassing expectations due to lower operating expenses of DKK 632 million, which were 20% below analyst estimates.
- Despite the profit, the company experienced a negative cash flow from operations of DKK 266 million, as significant receivables remain pending until the start of Phase 3 trials for petrelintide.
- Zealand Pharma maintained its full-year guidance of DKK 4.5 billion in revenue and DKK 2.7 to 3.3 billion in operating expenses, with a significant increase in costs anticipated in the second half of the year.
- The company converted a royalty interest in rusfertide into approximately DKK 640 million in cash, which was not included in the half-year financial report.
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Automatic translation: Originally published in undefined 13/08/2026, 05:19 GMT. Give feedback here.
Red Flag · First reading of the financial report · AI-generated content
Zealand Pharma (ZEAL) · Q2 2026 · August 13
Shares +7% in 3 months, +18% in the last month, 40% below the LTM peak
Overall assessment
Slightly negative assessment
Positive assessmentBalancedNegative assessment
Expect a weak opening: the pre-tax profit of DKK 4,006 million exceeded the expected DKK 3,782 million solely because Zealand Pharma spent DKK 632 million vs. DKK 789 million on petrelintide trials that have not yet started. The guidance was maintained, and a royalty sale adds approximately DKK 640 million.
Red flags in the financial report
The result was due to lower costs, not higher revenues
Costs 632 · Est. DKK 789 million
Operating expenses of DKK 632 million were 20% below the DKK 789 million analysts had expected, and foreign exchange gains on dollar receivables contributed an additional DKK 136 million in the quarter. Revenue itself landed just below expectations, DKK 4,491 million vs. DKK 4,529 million.
Phase 3 with petrelintide still has no start date
Announced: H2 2026, unchanged since February
In every financial report since February, Zealand Pharma has promised the final and largest trials for petrelintide, the company's most important obesity drug, in H2 2026, still without a date or design. The combination trial with Roche for enicepatide, now named ZYNERGY, has been moved from H1 to H2.
The profit is on paper and comes with a bill
Cash flow from operations -266 MDKK · Profit 3,524 MDKK
The milestone of DKK 3,671 million remains as a receivable until the trials begin and Roche can be invoiced, resulting in a negative cash flow from operations of DKK 266 million for the half-year, vs. a profit of DKK 3,524 million. The same trigger will release DKK 794 million that Zealand Pharma owes Roche, and approximately DKK 1.4 billion more will be due by 2027.
Green flags in the financial report
The result was well above expectations
Actual 4,006 · Est. 3,782 MDKK
Zealand Pharma earned DKK 4,006 million before tax in the quarter vs. the DKK 3,782 million analysts expected, corresponding to DKK 55.68 per share. A tax of only DKK 89 million left a net profit of DKK 3,917 million and raised equity to DKK 18.0 billion.
Both full-year guidances were maintained
Revenue DKK 4.5 billion · Costs DKK 2.7 to 3.3 billion
Zealand Pharma reiterated its full-year guidance of DKK 4.5 billion in collaboration sales and DKK 2.7 to 3.3 billion in operating expenses. Maintaining the cost range after only DKK 1,204 million in the first half-year requires a significant ramp-up in the second half, which is exactly what a Phase 3 start would look like.
A royalty outside the core business was converted into cash
New: approx. 640 MDKK
On August 12, Zealand Pharma agreed to sell its economic interest in rusfertide, a drug the company does not develop itself, to Royalty Pharma for approximately DKK 640 million. The funds are not included in the half-year financial report and are received without issuing a single new share.
Disclaimer: This is an HCA AI-generated research comment based solely on the company's published financial report. The comment does not constitute investment advice and should not be the sole basis for investment decisions. Investing in shares involves a risk of loss. Seek professional advice. /HC Andersen Capital, 07.19, 08.13.2026