Global drugmaker Pfizer (NYSE:PFE) has decided to discontinue the development of its experimental oral obesity drug, lotiglipron, for fear of liver hazards. Instead, Pfizer will put its full focus behind the development of its other oral obesity pill, branded danuglipron, which has proven to significantly reduce weight in Type 2 diabetic individuals during a 16-week trial period.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
During the midstage clinical studies of lotiglipron, it was found that taking the pill once a day for 16 weeks led to elevated levels of liver enzymes that could damage the liver. Danuglipron, however, showed no such symptoms and has successfully finished its phase two clinical trial. The phase three clinical trial for this drug is expected to be scheduled by the end of 2023.
Intensifying Competition in the Weight Loss Drug Category
The competition in this space is heating up as big pharma companies innovate and introduce better and more viable options to reduce weight. These weight loss drugs imitate a hormone called glucagon-like peptide-1 (GLP-1), which is found in the gut and is responsible for sending signals to the brain when the gut is full. Further, these drugs also help to keep type-2 diabetes under check.
The shortcoming of danuglipron is that the drug is to be taken twice a day and in a higher dosage of 120-milligram or 80-milligram, compared to Novo Nordisk’s (NYSE:NVO) weight loss injection Ozempic, whose dosage is only 1 milligram. Even so, since Pfizer has developed an oral tablet for the weight loss program, it still has an edge over Ozempic, as people do not like being pricked multiple times over a long period of time.
Having said that, Pfizer faces stiff competition from Eli Lilly’s (NYSE:LLY) experimental oral tablet, orforglipron, since it is to be taken only once daily. Pfizer is also working on a version of danuglipron that can be taken once a day instead of twice a day to offer more convenience and tolerability.
However, the one demerit of these weight loss drugs remains that once the consumer stops taking them, their weight leaps back to its original levels and sometimes even more. Only time will tell who has the last word in the race.
What is the Prediction for Pfizer Stock?
On TipRanks, the average Pfizer stock prediction of $47.62 implies the stock has room to grow roughly 29.1% from current levels over the next 12 months. Analysts have a cautiously optimistic view of PFE, with a Moderate Buy consensus rating based on six Buys and nine Hold ratings. Meanwhile, PFE stock has lost 26.6% so far this year.
