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May 7 (Reuters) - Danish drug developer Zealand Pharma ZELA.CO reported a smaller-than-expected first-quarter operating loss on Thursday, boosted by strong momentum in its obesity drug pipeline, and said it would launch a share buyback worth up to $200 million.

• Zealand's operating loss came in at 539 million Danish crowns ($85 million) in the quarter, compared with analysts' average forecast for a loss of 672.4 million crowns, according to data compiled by LSEG

• The company's cash position stood at 14.47 billion crowns at the end of March, down from 15.11 billion at end-2025

• The Danish drug developer also announced a share buyback of up to $200 million, citing a stronger outlook after positive obesity-drug developments

• It kept its 2026 guidance unchanged

• CEO Adam Steensberg said advancements during the quarter helped the company strengthen its long-term guidance, and that the company will keep investing heavily in its pipeline

• Zealand expects to receive milestone payments of $700 million from its Roche ROPC.S partnership in 2026, including $575 million linked to the initiation of Phase 3 trials with its obesity drug candidate petrelintide

• Petrelintide is Zealand's experimental once-weekly obesity drug, designed to compete with blockbuster weight-loss treatments such as Novo Nordisk's Wegovy

($1 = 6.3581 Danish crowns)