Pfizer’s stock took a hit on Friday following the company’s announcement that it will not be advancing with a Phase 3 trial of its weight loss candidate.
In a news release issued on Friday, Pfizer stated that its GLP-1RA candidate, danuglipron, will not be progressing into a Phase 3 trial due to the high rates of common adverse effects, such as nausea and vomiting.
Mikael Dolsten, president of Pfizer research and development, expressed optimism about the potential of an improved once-daily formulation of danuglipron in the treatment of obesity. He emphasized Pfizer’s dedication to gathering data to better understand its profile.
This development comes at a time when pharmaceutical giants Eli Lilly and Novo Nordisk have experienced significant stock surges this year. This is largely attributed to the success of their drugs, Mounjaro and Ozempic, which have demonstrated effectiveness in reducing weight.
Pfizer’s shares experienced a decline of 3.9% in premarket trading on Friday, reaching $29.30. Year to date, the stock has fallen by 41%.