BofA keeps Neutral on Pfizer after danuglipron failure as core thesis unchanged

BofA analyst Tim Anderson notes Pfizer (PFE) announced danuglipron, an oral GLP-1 obesity, is being discontinued, following a case of liver injury seen in the phase 1 study. The firm points out that it has argued that this program has received almost too much attention – not because obesity isn’t important, but because this was only phase 1 data. Without danuglipron, Pfizer’s obesity pipeline now consists of a GIP receptor antagonist in phase 2 and a phase 1 oral GLP-1 in T2D with Nxera Pharma. If the company is committed to obesity, a possible next step could be business development, BofA argues. The firm reiterates a Neutral rating for Pfizer as it believes core thesis remains unchanged.