** Shares in Zealand Pharma ZELA.CO drop 24.1% after the Danish biotech presented late-stage study results of its experimental obesity drug survodutide licensed to Boehringer Ingelheim on Friday

** Its Phase III data showed "high frequency of [gastrointestinal] events and notable discontinuations" which "will likely disappoint," Jefferies says

** J.P. Morgan notes the reported weight loss of 13% on a treatment regimen basis is below marketed competitors, with Novo Nordisk's NOVOb.CO Wegovy at around 15% and Eli Lilly's LLY.N Zepbound at about 20%

** JPM says rigid trial dosing likely influenced side effects but even after adjustments and compared to competitors, it sees tolerability as "disappointing"

** Jefferies adds that there are "encouraging" indicators of direct liver benefits and likely earlier titration amendments, but Zealand's value inflection point won't come before 2027

** The stocks is at the bottom of the STOXX 600 .STOXX index