Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Pharmaceutical giant Pfizer Inc. (NYSE: PFE) announced Thursday its decision to move forward with the development of a once-daily version of its weight loss pill, danuglipron, sparking a positive response from investors. The company’s stock rose 1.90% to $28.89 in early trading today.
Pfizer’s Weight Loss Pill Development
Pfizer’s decision to continue developing danuglipron comes after “encouraging” data from an ongoing early-stage trial. The company identified a formulation with the most favorable safety profile and bodily reactions, paving the way for additional early-stage trials in the second half of 2024. Results from these trials are expected in the first quarter of 2025.
Dr. Mikael Dolsten, Pfizer’s outgoing Chief Scientific Officer, expressed confidence in the drug’s potential, stating that the once-daily formulation could be competitive in the oral GLP-1 agonist space. This class of drugs, which includes Novo Nordisk’s popular Wegovy and Ozempic, has seen soaring demand for weight loss and diabetes treatment.
The advancement of danuglipron represents a significant turnaround for Pfizer, which discontinued the twice-daily version of the drug in December due to tolerability issues. Notably, no liver safety issues were observed in patients receiving the once-daily formulations, addressing a key concern that had previously hindered the company’s progress in this therapeutic area.
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Pfizer’s Moment in the GLP-1 Market
This development keeps Pfizer in contention for a share of the projected $100 billion GLP-1 market, maintaining competitive pressure on market leaders Novo Nordisk and Eli Lilly (NYSE: LLY). It also signals Pfizer’s strategy to focus on internal development rather than late-stage acquisitions, though the company may still consider licensing deals or acquiring earlier-stage weight loss drugs.
The news has implications for Pfizer’s financial outlook and stock performance. While the company’s stock is up 3.39% year-to-date, it has underperformed the S&P 500’s 18.14% gain. Pfizer’s market capitalization stands at $163.702 billion, with a forward P/E ratio of 12.30 and a dividend yield of 5.43%. However, the company reported negative earnings per share of $0.05 over the trailing twelve months, reflecting recent challenges.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.s
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