Pfizer (PFE.N) plans to initiate clinical trials later this year for a reworked, once-a-day version of its weight-loss pill, danuglipron. This follows the company’s decision to discontinue a twice-daily version of the drug last year due to high dropout rates in its mid-stage trial caused by side effects like nausea and vomiting.
This new formulation is part of the second generation of weight-loss pills being developed by companies such as Eli Lilly (LLY.N) and Novo Nordisk (NOVOb.CO), which aim to offer a more convenient alternative to injectable treatments. The weight-loss drug market, currently led by Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, is projected by some analysts to exceed $150 billion in annual sales by the early 2030s.
Pfizer has not specified an exact timeline for the development of the new danuglipron formulation. However, the company plans to test multiple doses of the reformulated drug in the second half of this year before progressing to clinical trials.
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Last year, Pfizer abandoned another daily weight-loss drug, lotiglipron, due to safety concerns after it was found to raise liver enzyme levels in some patients. Despite these setbacks, Pfizer reports early study results indicating that the new once-daily danuglipron formulation did not cause liver enzyme elevations in over 1,400 healthy adult volunteers.
JP Morgan analyst Chris Schott noted that Eli Lilly’s experimental weight-loss pill has a significant time-to-market advantage over Pfizer’s. He expressed concerns about the side effects of the new danuglipron formulation, suggesting a limited role for the drug without more clarity on its tolerability profile.
Shares of Pfizer rose 2.8% to $29.14 in premarket trading on Thursday, following the news. However, Pfizer’s shares have significantly dropped from their peak of $61 in December 2021 due to a steep decline in sales of its COVID products and investor concerns over its drug pipeline, including the scrapped lotiglipron.
Pfizer’s CEO, Albert Bourla, faces pressure to drive growth through newer drugs as sales of the company’s COVID-19 vaccine and pill have plummeted from their pandemic peak. On Tuesday, Pfizer announced that chief scientific officer Mikael Dolsten would step down after more than 15 years with the company.
GLP-1s, initially developed for type 2 diabetes, work by mimicking the action of the GLP-1 hormone to regulate blood sugar, slow digestion, and suppress appetite. Other companies working on next-generation weight-loss drugs include Amgen (AMGN.O) and Viking Therapeutics (VKTX.O).
