Pfizer Shares Slide After Termination of Obesity Drug Study

Key TakeAway

• Pfizer's stock experienced a decline of approximately 4% during the initial trading hours on Monday following the termination of the development of an oral remedy for obesity and diabetes.
• The pharmaceutical firm stated that this choice was reached due to patients exhibiting heightened liver enzyme levels.
• Pfizer affirmed its commitment to concentrate on an alternative medication for obesity and diabetes, slated for Phase 3 trials by late 2023.

Pfizer (PFE) stocks plunged by nearly 4% in early Monday trading following the discontinuation of the pharmaceutical company's development of an experimental treatment, lotiglipron, for obesity and diabetes. The decision came after patients who took the medication displayed increased levels of liver enzymes.

The company's choice was based on findings from a Phase 1 study and ongoing Phase 2 trials. Pfizer emphasized that none of the participants experienced liver failure, liver-related symptoms, or side effects requiring treatment.

Instead, Pfizer announced its intention to redirect its focus towards danuglipron, another oral medication for obesity and diabetes. In a Phase 2 trial, high-dose administration of danuglipron twice daily over 16 weeks resulted in weight reduction.

William Sessa, Pfizer's senior vice president and chief scientific officer of internal medicine, highlighted that if danuglipron proves effective and gains approval, it could have a distinct advantage over similar treatments. Pfizer expects to commence a Phase 3 trial for danuglipron by the end of this year.

Shares of Pfizer were hovering near their nadirs for the year following the downturn witnessed on Monday.