Can Pfizer carve out a share in the weight loss drug market? Trial data is the focus.
As revenue from COVID-19 products evaporates, $Pfizer (PFE.US)$ hopes to get a slice of the emerging weight loss market.
Analysts say the upcoming data on Pfizer's experimental weight loss drug, danuglipron, will be crucial for the company's competition with major players like $Novo-Nordisk A/S (NVO.US)$ and $Eli Lilly and Co (LLY.US)$ in the emerging weight loss market.
Analysts say the upcoming data on Pfizer's experimental weight loss drug, danuglipron, will be crucial for the company's competition with major players like $Novo-Nordisk A/S (NVO.US)$ and $Eli Lilly and Co (LLY.US)$ in the emerging weight loss market.
Investors are eagerly awaiting Pfizer's phase 2 trial data for the twice-daily oral medication in non-diabetic obese patients, which is expected to be announced by the end of this year. They hope to see the drug achieve a weight loss effect similar to Lilly's once-daily tablet. Investors are also eagerly awaiting data on the once-daily version of danuglipron, which is expected to be a more competitive version of the drug, to be announced early next year.
Pfizer sees a significant opportunity in this field and hopes to rebound from the sharp drop in demand for COVID-19 products, reversing the roughly 40% decrease in its stock price this year.
Pfizer CEO Albert Bourla stated in January that the market for GLP-1 (a class of drugs that mimic gut hormones to suppress appetite for obesity and diabetes) could eventually grow to $90 billion, and the company hopes to capture a $10 billion market share with its oral weight loss drug.
In June of this year, Pfizer abandoned the development of the once-daily experimental weight loss drug, lotiglipron, due to concerns about liver safety. Since then, investors have become more pessimistic about the company's potential in the weight loss drug industry. This has left Pfizer with only the option to develop the twice-daily danuglipron, which Wall Street is less excited about as it is less convenient than a once-daily medication.
Positive data from these trials could reignite enthusiasm for Pfizer, as it has done for Novo Nordisk and Lilly's stock prices this year.
Cantor Fitzgerald analyst Louise Chen stated, "If Pfizer's data is positive, then I think people might be able to look past all the threats from these COVID products."
Oral weight loss medications could benefit all three companies. Oral medications are generally easier to manufacture than injectables and are more convenient for doctors to prescribe and patients to take. As demand for medications soars, tablets could also help alleviate the supply shortages that have plagued many injectable drugs.
In June of this year, Pfizer abandoned the development of the once-daily experimental weight loss drug, lotiglipron, due to concerns about liver safety. Since then, investors have become more pessimistic about the company's potential in the weight loss drug industry. This has left Pfizer with only the option to develop the twice-daily danuglipron, which Wall Street is less excited about as it is less convenient than a once-daily medication.
Positive data from these trials could reignite enthusiasm for Pfizer, as it has done for Novo Nordisk and Lilly's stock prices this year.
Cantor Fitzgerald analyst Louise Chen stated, "If Pfizer's data is positive, then I think people might be able to look past all the threats from these COVID products."
Oral weight loss medications could benefit all three companies. Oral medications are generally easier to manufacture than injectables and are more convenient for doctors to prescribe and patients to take. As demand for medications soars, tablets could also help alleviate the supply shortages that have plagued many injectable drugs.
Key focus points:
Weight loss effect needs to reach 15%
Focus on the once-daily medication version
Weight loss effect needs to reach 15%
Focus on the once-daily medication version
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