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Pfizer Inc.’s logo was captured in this photograph taken on May 1, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights
Pfizer (PFE.N) has announced that it will not proceed with a twice-daily version of the oral weight-loss drug danuglipron after an earlier trial showed high rates of side effects, including nausea and vomiting, leading to most patients dropping out. The decision to halt late-stage studies of the twice-daily version is a setback for Pfizer’s plans to capitalize on the lucrative weight-loss drug market, which analysts estimate to be worth $100 billion by the end of the decade.
While Pfizer is continuing to develop a once-daily version of the weight-loss pill, the results of the danuglipron trial have been disappointing, with weight-loss rates below expectations. Analyst Louise Chen of Cantor Fitzgerald expressed disappointment in the outcomes and the significant side effects observed during the trial. Pfizer’s stock fell 4.8% to $29.33 in premarket trading following the announcement.
The drug, danuglipron, belongs to the same class of diabetes and obesity treatments as other drugs such as Novo Nordisk’s Wegovy and Ozempic, and Eli Lilly’s Mounjaro and Zepbound. Currently, approved treatments in this class are administered via injections, although companies like Novo Nordisk and Eli Lilly are also exploring oral versions of these drugs.
Pfizer will now focus on developing a once-daily, modified release version of danuglipron and is gathering data to understand its potential profile. The company expects to receive data on the new version’s interaction with the body in the first half of next year.
Despite the mild side effects observed in the twice-daily version study, the trial saw high rates of these events, leading to discontinuation rates of over 50%, with up to 73% of patients reporting nausea, up to 47% vomiting and up to 25% diarrhea. Pfizer noted that there were no new safety concerns observed in the study.
There is uncertainty about whether a new version of the drug can overcome the side-effect profile, as high vomiting rates may have contributed to the overall weight loss observed. Pfizer has high hopes for danuglipron, with CEO Albert Bourla stating that an obesity pill could eventually become a $10-billion-a-year product for the company.
Pfizer shares have declined by more than 40% this year due to a decrease in sales of its COVID-19 products and concerns about potential competition for some of its top-selling drugs. In October, the company announced a $3.5 billion cost-cutting program to address these challenges, but has yet to provide specific details about the planned cuts.
(Reporting by Manas Mishra in Bengaluru and Michael Erman in New York; Editing by Shinjini Ganguli and Anil D’Silva)
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