Photo Credit: Getty Images
Pharmaceutical giant Pfizer announced plans to advance a reworked, once-a-day version of its weight-loss pill danuglipron into clinical trials later this year. This move follows the company's decision to discontinue the twice-daily version of the drug late last year due to high dropout rates in midstage trials caused by side effects such as nausea and vomiting.
The new danuglipron pill is part of the second generation of weight-loss medications under development by several companies, including Eli Lilly and Novo Nordisk, aimed at providing patients with more convenient alternatives to injectable treatments. Analysts predict the weight-loss drug market, currently led by Novo Nordisk's Wegovy and Eli Lilly's Zepbound, could exceed $150 billion in annual sales by the early 2030s.
While Pfizer has not specified an exact timeline for the drug's development, the company plans to assess multiple doses of the reformulated pill in the second half of this year before moving it into clinical trials. Pfizer had previously abandoned another daily weight-loss drug, lotiglipron, due to safety concerns after some patients experienced elevated liver enzyme levels.
JP Morgan analyst Chris Schott noted that Eli Lilly's experimental weight-loss pill has a significant head start over Pfizer's new formulation. He expressed concerns about the potential side effects of Pfizer's drug, stating he sees "a limited role for the asset absent more clarity on the tolerability profile of the new formulation."
Despite these challenges, Pfizer reported that early study results supported the feasibility of once-daily dosing for danuglipron, with no liver enzyme elevations observed in over 1,400 healthy adult volunteers. GLP-1s, the class of drugs to which danuglipron belongs, were initially developed for type 2 diabetes treatment and work by mimicking the GLP-1 hormone to regulate blood sugar, slow digestion, and suppress appetite.
Other companies, including Amgen and Viking Therapeutics, are also developing next-generation weight-loss drugs, highlighting the competitive nature of this rapidly growing market.
Pfizer's shares saw a 2.8% rise to $29.14 in premarket trading following the announcement. However, the company's stock has significantly declined since reaching $61 in December 2021, largely due to a steep drop in sales of its COVID-19 products and concerns about its drug development pipeline, including lotiglipron.
This announcement comes amid broader changes at Pfizer, including the recent news that chief scientific officer Mikael Dolsten will step down after more than 15 years with the company. With the sharp decline in COVID-19 vaccine and pill sales, CEO Albert Bourla faces increasing pressure to drive growth through new drug developments.
