Biotech
Monday, November 13th, 2023 5:57 pm EDT
Key Points
- Pfizer’s Entry into the Weight Loss Drug Market: Pfizer is strategically venturing into the weight loss drug market to counterbalance the decline in demand for its Covid-related products and recover from a significant 40% drop in its share price in the current year. The pharmaceutical company is focusing on its experimental obesity pill, danuglipron, as a key player in this market. This move is in response to the success of major competitors, Eli Lilly and Novo Nordisk, who have been leading the industry with their weekly obesity and diabetes injections like Wegovy, Ozempic, and Mounjaro.
- Investor Anticipation of Trial Data and Market Dynamics: Investors are closely awaiting Pfizer’s release of phase two trial data on its twice-daily pill, targeting obese patients without diabetes, by the end of the year. The effectiveness of this drug, particularly in terms of weight loss, is crucial for Pfizer to establish itself as a strong competitor against industry leaders like Eli Lilly. Pfizer’s CEO, Albert Bourla, envisions a substantial opportunity in the GLP-1 market (obesity and diabetes drugs), estimating a potential market growth to $90 billion, of which Pfizer aims to capture $10 billion with its oral treatment.
- Challenges and Potential of Danuglipron: Pfizer faces challenges in gaining investor confidence, especially since the company abandoned its once-daily pill due to elevated liver enzymes in users. The remaining option, the twice-daily danuglipron, is perceived as less convenient, leading to concerns among investors. Analysts emphasize that the upcoming trial data needs to demonstrate competitive efficacy, with a weight loss percentage comparable to Eli Lilly’s once-a-day pill, orforglipron, which achieved up to 14.7% weight loss in phase two trials. While the potential of danuglipron in treating obesity has been observed in midstage trials with diabetic patients, investors are still eager to see data on a once-daily version, as physicians generally prefer this dosing regimen over twice-daily drugs.
Pfizer is entering the weight loss drug market, aiming to rebound from diminishing demand for its Covid products and reverse a roughly 40% share price drop in 2023. The company’s experimental obesity pill, danuglipron, is under scrutiny, with upcoming phase two trial data anticipated by the end of the year. Pfizer’s foray into this market is a response to the success of Eli Lilly and Novo Nordisk, major players that sparked a gold rush in the weight loss drug industry with their weekly obesity and diabetes injections.
Investors are keen to assess the efficacy of Pfizer’s twice-daily pill, especially in comparison to Eli Lilly’s once-a-day pill, with expectations of at least a 14% to 15% weight loss. Pfizer views the weight loss drug segment as a major opportunity, with CEO Albert Bourla stating that the market for GLP-1s (obesity and diabetes drugs) could eventually reach $90 billion, and Pfizer aims to capture $10 billion of that with an oral treatment.
Pfizer’s optimism, however, has been tempered by the abandonment of its experimental once-daily pill in June due to elevated liver enzymes in users. This setback has left Pfizer with the twice-daily danuglipron, seen as less exciting to investors due to its reduced convenience compared to a once-daily treatment. The success of the upcoming trials is crucial for Pfizer’s prospects in the weight loss drug industry, with encouraging results potentially boosting the company’s stock and offsetting concerns related to its Covid-related challenges.
The article emphasizes the importance of Pfizer’s upcoming phase two trial data, which will provide insights into the efficacy of danuglipron over a longer period. Analysts are looking for weight reduction percentages comparable to Eli Lilly’s pill, setting a bar of at least 14% to 15%. Additionally, the potential success of a once-daily version is critical, as physicians generally prefer such formulations, and concerns about gastrointestinal side effects associated with the twice-daily pill could be alleviated.
Pfizer’s strategic move into the weight loss drug market reflects the evolving landscape of pharmaceuticals, with a focus on oral treatments that are easier to manufacture and more convenient for both doctors and patients. The article concludes by raising questions about whether Pfizer’s once-daily version will be ready for a phase three trial in 2024, a key step toward potential FDA approval, with Pfizer expressing confidence that this milestone is “within our reach” in the coming year.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/13/pfizer-enters-weight-loss-drug-market-with-novo-nordisk-eli-lilly.html
