July 14, 2024

PFE Stock Slides After Latest Setback for Weight-Loss Drug

2 min read
PFE Stock Slides After Latest Setback for Weight-Loss Drug
PFE Stock Slides After Latest Setback for Weight-Loss Drug

Pfizer, the pharmaceutical giant, recently announced that it will not be advancing the development of a twice-daily oral weight-loss drug due to high rates of adverse effects. The drug, named danuglipron, showed statistically significant changes in body weight during clinical trials. However, it also caused nausea and vomiting in up to 73% of patients, making it unfit for further development.

This news had a negative impact on Pfizer’s stock, as it fell by 5% during Friday trading. The company had high hopes for danuglipron, but the severe side effects proved to be a major setback. As a result, Pfizer has decided to shift its focus to developing a once-daily version of the drug. Initial data for this new formulation is expected to be available in the first half of next year.

Interestingly, this is not the first weight-loss drug that Pfizer has had to halt development on. The company previously dropped another once-daily weight-loss drug, called lotiglipron, due to potential liver side effects. It seems that Pfizer is facing significant challenges in its efforts to compete with other pharmaceutical giants, such as Novo Nordisk’s Ozempic and Eli Lilly’s Mounjaro, in the weight-loss drug market.

To further compound Pfizer’s struggles, the company’s stock has declined by over 40% this year. In contrast, Novo Nordisk and Eli Lilly have seen significant gains in their stocks. In fact, Eli Lilly’s weight-loss drug recently outperformed Novo Nordisk’s in a head-to-head study, further highlighting Pfizer’s struggles in this competitive market.

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In conclusion, Pfizer’s announcement that it will not advance the development of its twice-daily oral weight-loss drug due to adverse effects has had a negative impact on the company’s stock. Despite the setbacks, Pfizer remains determined to compete with its rivals in the weight-loss drug market and is now focusing on developing a once-daily version of the drug. Only time will tell if Pfizer can overcome these obstacles and find success in this highly competitive industry.

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