Pfizer shares plunge after setbacks in obesity drug trial
Last updated: 11:05 01 Dec 2023 EST, First published: 10:31 01 Dec 2023 EST
Shares in Pfizer Inc (NYSE:PFE) plunged 6% after its highly touted weight loss pill Danuglipron showed significant side effects, stopping people from using it.
Pfizer will now focus on a once-daily formulation of the pill after the mid-stage study on a twice-daily version showed that while it had a significant effect on weight reduction, side effects forced many participants to stop taking it.
Study participants achieved a weight reduction of as much as 13% over 32 weeks, Pfizer said, but high gastrointestinal side effects such as nausea and vomiting were reported.
It said the twice-daily formulation would not progress to late-stage trials.
Analysts had warned there were likely challenges for the drug.
Weight loss injections have boosted the fortunes of companies such as Denmark’s Novo Nordisk after huge demand for its weight-loss vaccine Ozempic/Wegovy while AstraZeneca recently ventured into the obesity industry with a tie-up with Chinese biotech, Eccogene.
Drugmakers like Pfizer are looking to create a weight-loss drug that can be taken in a pill form rather than an injection, betting patients will prefer that.
Data on Pfizer’s once-daily oral pill is expected in the first half of 2024.
Shares in Novo Nordisk fell 1.2% while AstraZeneca retreated from earlier highs but held in positive territory.
