Af­ter fail­ing bad­ly on the new com­mer­cial­iza­tion front, Zealand slash­es US staff, sends off CEO and piv­ots back to R&D

Af­ter dash­ing in­vestors’ hopes last fall on the earn­ing po­ten­tial of the re­cent­ly FDA-ap­proved di­a­betes treat­ment Ze­ga­logue, Zealand Phar­ma is rad­i­cal­ly chang­ing up its game plan.

The Dan­ish biotech, which has seen its share price $ZEAL slide by about 50% over the past year, is gut­ting its US op­er­a­tions, look­ing for some strate­gic part­ner­ships to man­age Ze­ga­logue and V-GO, its wear­able for blood sug­ar con­trol. The com­pa­ny is elim­i­nat­ing 90% of its US work­force in the next few months — with­out telling us the num­bers — with more lay­offs to come in Den­mark. More pacts are al­so planned for the pipeline prod­ucts.

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