Key takeaways:
- Pfizer has halted the development of its experimental once-daily weight loss pill danuglipron after a patient experienced a potential drug-induced liver injury in a clinical trial.
- The announcement adds to Pfizer’s setbacks in its bid to enter the lucrative obesity drug market, which is expected to grow to over $100 billion by the early 2030s.
- Rivals Novo Nordisk and Eli Lilly, with their blockbuster GLP-1 weight loss drugs Wegovy and Zepbound respectively, stand to benefit from Pfizer’s decision.
Detailed Analysis
Pharmaceutical giant Pfizer Inc. has discontinued the development of its experimental once-daily weight loss pill danuglipron after a patient experienced a potential drug-induced liver injury during a clinical trial. The patient’s liver enzymes, which often indicate damage to liver cells, recovered rapidly after they stopped taking the pill, according to the company.
Pfizer’s decision to scrap danuglipron comes after a review of the drug’s clinical data and recent feedback from regulators. The company stated that it remains committed to advancing promising programs to bring innovative new medicines to patients, but the latest setback highlights the challenges it faces in the rapidly evolving weight loss drug market.
The announcement is a significant blow to Pfizer’s ambitions to compete in the booming obesity treatment space, which analysts have forecast could be worth more than $100 billion by the start of the next decade 1. Rival drugmakers Novo Nordisk and Eli Lilly have already established dominance in this market with their respective GLP-1 drugs, Ozempic (semaglutide) and Mounjaro (tirzepatide), which are approved for both diabetes and weight loss.
In 2024, Novo Nordisk’s Wegovy (semaglutide) raked in over $3 billion in sales, while Eli Lilly’s Zepbound (tirzepatide) reached nearly $5 billion in revenue within its first year of approval. Pfizer, on the other hand, has struggled to keep up, with danuglipron being its most advanced weight loss candidate.
The discontinuation of danuglipron is not Pfizer’s first setback in the obesity drug market. In December 2023, the company halted the development of a twice-daily version of the same drug due to tolerability issues, with most patients dropping out of a mid-stage trial due to side effects such as nausea and vomiting 2.
While Pfizer remains optimistic about its other early-stage obesity drug candidates, including a GIPR blocker and another once-daily oral GLP-1, the company faces an uphill battle to catch up with its more agile rivals, Novo Nordisk and Eli Lilly. Shares of Pfizer were relatively flat in pre-market trading on the news, while Novo Nordisk and Eli Lilly saw their stocks rise 3.
Conclusion
Pfizer’s decision to discontinue the development of its once-daily weight loss pill danuglipron represents a significant setback for the pharmaceutical giant in its efforts to enter the lucrative obesity drug market. The news is a boon for rivals Novo Nordisk and Eli Lilly, whose respective weight loss drugs, Wegovy and Zepbound, continue to dominate the market.
While Pfizer remains committed to advancing its other obesity drug candidates, the company faces an uphill battle to catch up with its more established competitors. As the weight loss drug market continues to grow, investors will be closely watching Pfizer’s progress and the potential impact on the company’s financial performance and stock price.
References
1 Alex Ralph (Apr 14, 2025). “Pfizer halts development of pill for $100bn weight-loss market”. The Times. Retrieved Apr 14, 2025.
2 Simon Freeman (Dec 1, 2023). “Pfizer’s feeling sick after abandoning weight-loss drug trial”. The Times. Retrieved Apr 14, 2025.
3 Colin Kellaher (Apr 14, 2025). “Pfizer Shares Slip After Company Scraps Weight-Loss Pill”. Morningstar. Retrieved Apr 14, 2025.
4 J. Edward Moreno (Apr 14, 2025). “Novo Nordisk, Eli Lilly rise after Pfizer scraps obesity pill”. Sherwood News. Retrieved Apr 14, 2025.
5 cnbc_official (Apr 14, 2025). “Pfizer scraps daily weight loss pill after liver injury in one patient”. Reddit. Retrieved Apr 14, 2025.
6 AJMC Staff (Jul 12, 2024). “What We’re Reading: Pfizer Plans Daily Weight Loss Pill; Toxic Metals in Tampons; Telehealth in PFS”. The American Journal of Managed Care. Retrieved Apr 14, 2025.
