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Pfizer (PFE) Stock Down on Halting Development of Obesity Drug
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Pfizer (PFE - Free Report) announced its decision to discontinue the clinical development of an investigational oral once-daily GLP-1 receptor agonist (“GLP-1-RA”) drug, lotiglipron. The drug was being evaluated in clinical studies for treating obesity and type 2 diabetes mellitus (“T2DM”) in adults.
The decision is based on data from multiple phase I drug-drug-interaction studies and an ongoing phase II study wherein study participants treated with lotiglipron were shown to have elevated levels of liver enzymes.
Pfizer also stated that it will continue to advance the development of its other experimental GLP-1-RA oral drug, danuglipron, which is currently being evaluated in a phase II study in patients with obesity and T2DM. If the study is successful, management intends to advance the candidate to late-stage development by year-end.
Shares of Pfizer lost 3.7% on Jun 26, following the above announcement. In spite of the positive news regarding management’s progress with developing danuglipron, the drug requires a twice-daily oral administration. This puts Pfizer at a huge commercial disadvantage since rival Eli Lilly‘s (LLY - Free Report) obesity drugs only require once-daily oral administration. Management is currently working on developing a once-daily version of danuglipron.
Year to date, the stock has lost 28.0% against the industry’s 2.0% growth.
Image Source: Zacks Investment Research
This latest setback puts Pfizer behind Eli Lilly, which is evaluating several obesity pills in mid-stage and late-stage development. Last week, LLY announced the completion of its regulatory submission seeking label expansion for its dual GIP/GLP-1-RA drug tirzepatide to treat adults with obesity or overweight with weight-related comorbidities. A decision is expected by 2023-end. Tirzepatide, which is being marketed under the brand name Mounjaro, is currently approved for treating adults with T2DM.
Earlier this week, Lilly announced new data from a phase II study evaluating its investigational obesity drug retatrutide. The study achieved its primary endpoint of percent change in weight from baseline at 24 weeks. Data from the study showed that participants treated with retatrutide achieved a mean weight reduction up to 17.5%.
Currently, Novo Nordisk (NVO - Free Report) is a key player in the diabetes and obesity space.Novo Nordisk’s semaglutide was initially approved by the FDA in 2017 to treat type II diabetes and is being marketed under the trade name Ozempic. In 2021, Novo Nordisk received label expansion in the United States for semaglutide to treat obesity or overweight in adults. Following the label approval, semaglutide became the first drug to receive approval for chronic weight management in adults with general obesity or overweight since 2014. Novo Nordisk markets semaglutide for obesity indication under the brand name Wegovy.
Since its launch, sales of Wegovy have been gaining momentum. Wegovy sales were up 124% in first-quarter 2023 based on which Novo Nordisk also raised full-year 2023 sales outlook and profit expectations.
In the past 60 days, the estimate for Novartis’ 2023 and 2024 EPS have increased from $6.57 to $6.74 and $7.08 to $7.28, respectively. Shares of Novartis are up 9.7% in the year-to-date period.
Earnings of Novartis beat estimates in each of the last four quarters, witnessing an average earnings surprise of 5.15%.
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Pfizer (PFE) Stock Down on Halting Development of Obesity Drug
Pfizer (PFE - Free Report) announced its decision to discontinue the clinical development of an investigational oral once-daily GLP-1 receptor agonist (“GLP-1-RA”) drug, lotiglipron. The drug was being evaluated in clinical studies for treating obesity and type 2 diabetes mellitus (“T2DM”) in adults.
The decision is based on data from multiple phase I drug-drug-interaction studies and an ongoing phase II study wherein study participants treated with lotiglipron were shown to have elevated levels of liver enzymes.
Pfizer also stated that it will continue to advance the development of its other experimental GLP-1-RA oral drug, danuglipron, which is currently being evaluated in a phase II study in patients with obesity and T2DM. If the study is successful, management intends to advance the candidate to late-stage development by year-end.
Shares of Pfizer lost 3.7% on Jun 26, following the above announcement. In spite of the positive news regarding management’s progress with developing danuglipron, the drug requires a twice-daily oral administration. This puts Pfizer at a huge commercial disadvantage since rival Eli Lilly‘s (LLY - Free Report) obesity drugs only require once-daily oral administration. Management is currently working on developing a once-daily version of danuglipron.
Year to date, the stock has lost 28.0% against the industry’s 2.0% growth.
Image Source: Zacks Investment Research
This latest setback puts Pfizer behind Eli Lilly, which is evaluating several obesity pills in mid-stage and late-stage development. Last week, LLY announced the completion of its regulatory submission seeking label expansion for its dual GIP/GLP-1-RA drug tirzepatide to treat adults with obesity or overweight with weight-related comorbidities. A decision is expected by 2023-end. Tirzepatide, which is being marketed under the brand name Mounjaro, is currently approved for treating adults with T2DM.
Earlier this week, Lilly announced new data from a phase II study evaluating its investigational obesity drug retatrutide. The study achieved its primary endpoint of percent change in weight from baseline at 24 weeks. Data from the study showed that participants treated with retatrutide achieved a mean weight reduction up to 17.5%.
Currently, Novo Nordisk (NVO - Free Report) is a key player in the diabetes and obesity space.Novo Nordisk’s semaglutide was initially approved by the FDA in 2017 to treat type II diabetes and is being marketed under the trade name Ozempic. In 2021, Novo Nordisk received label expansion in the United States for semaglutide to treat obesity or overweight in adults. Following the label approval, semaglutide became the first drug to receive approval for chronic weight management in adults with general obesity or overweight since 2014. Novo Nordisk markets semaglutide for obesity indication under the brand name Wegovy.
Since its launch, sales of Wegovy have been gaining momentum. Wegovy sales were up 124% in first-quarter 2023 based on which Novo Nordisk also raised full-year 2023 sales outlook and profit expectations.
Pfizer Inc. Price
Pfizer Inc. price | Pfizer Inc. Quote
Zacks Rank & Stocks to Consider
Pfizer currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the overall healthcare sector is Novartis (NVS - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, the estimate for Novartis’ 2023 and 2024 EPS have increased from $6.57 to $6.74 and $7.08 to $7.28, respectively. Shares of Novartis are up 9.7% in the year-to-date period.
Earnings of Novartis beat estimates in each of the last four quarters, witnessing an average earnings surprise of 5.15%.