Pfizer in Freefall After Cancelling Weight Loss Pill

Another massive setback throws Pfizer stock to the wolves

BREAKING NEWS

It's just hit after hit for Pfizer as their much-anticipated trial data for their own Ozempic/ Mounjaro competitor blew up. Pfizer is canceling the drug thanks to a huge amount of side effects. 

WHAT HAPPENED

While Pfizer is well behind Novo Nordisk and Eli Lilly in the GLP wars, there was a lot of excitement behind their Danuglipron. Pfizer had formulated an Ozempic-like drug that could be taken in a much more convenient pill form. However, the clinical trials for the twice-a-day dose of this drug came back with a wide selection of mild side effects, most of them stemming from stomach discomfort. There was no way the FDA would approve even more clinical trials for a drug with this high a rate of negative side effects, so Pfizer was forced to pull the plug here. 

NOT DEAD YET

Of course, Pfizer isn't completely out of the race yet. They proactively also set up a trial for once-a-day Danuglipron, but this may not show enough efficacy to even compete with the GLP-1 pills that Lilly and Nordisk are getting to the market right now. Instead of securing a slice of a potentially $10 billion industry, Pfizer is falling further behind. 

WHY IT MATTERS

This is a fairly brutal result for Pfizer stock today, as the market was counting on at least some good news for the company after COVID revenue completely dried up this year. Pfizer is in the middle of a new development cycle and should be able to pull out of this, but with their hopes of getting into the Ozempic market basically destroyed, investors are having a hard time finding reasons to hang on to the stock. Pfizer opened down 4% and there's no sign of that action slowing. They're now down over 40% on the year.