📰 Pfizer Drops Promising Weight-Loss Pill – What It Means for the Market
After a liver problem in a trial participant, Pfizer has stopped developing its once-daily weight-loss pill, danuglipron, leaving more room for competitors in the growing obesity drug market.
On Monday, Pfizer PFE 0.00%↑ announced that it is halting the development of its once-daily oral weight-loss pill, danuglipron. This decision follows a clinical trial incident in which one patient showed signs of liver injury, possibly caused by the drug. Although the patient’s liver enzyme levels returned to normal quickly after stopping the medication and showed no symptoms, Pfizer is not taking any chances.
Danuglipron, a GLP-1 agonist, was positioned as a more convenient alternative to injectable treatments like Novo Nordisk’s Wegovy or Eli Lilly’s Zepbound. Despite earlier promising results, this version also had tolerability issues, just like the twice-daily version that was shelved back in 2023.
What does this mean for the market?
The GLP-1 market is expected to exceed $150 billion over the next decade, with a sizable share going to oral versions of the drugs, offering patients a pill instead of a weekly shot. With Pfizer stepping back (at least for now), other players have room to reposition themselves and possibly take a stronger lead.
Novo Nordisk – The big winner
Already the market leader, Novo Nordisk has Rybelsus (currently the only approved oral GLP-1 for diabetes) and blockbuster injectables like Ozempic and Wegovy. With Pfizer out of the pill race, Novo’s dominance in the oral space strengthens significantly. And although Rybelsus is officially for type 2 diabetes, many use it off-label for weight loss.Eli Lilly – All eyes on Orforglipron
Eli Lilly is in the advanced stages of developing its own oral GLP-1 drug, orforglipron. Expectations are high, with Phase 3 results just around the corner. Pfizer’s withdrawal raises the stakes: if Lilly delivers on both safety and efficacy, it could capture a large chunk of the $50 billion oral GLP-1 market.Viking Therapeutics – Quiet contender, rising fast
Viking may be a smaller player, but its GLP-1/GIP dual agonist pill (VK2735) has caught serious attention. With Pfizer bowing out, Viking now stands out as an agile and innovative competitor, provided the clinical data holds up.
What’s next for Pfizer?
Pfizer insists it’s not walking away from the obesity space. The company is continuing to develop other experimental treatments, including an oral GIPR inhibitor, a different hormonal target altogether. But one thing’s clear: danuglipron, in any form, is done.
The move is as much about strategy as it is about science. With COVID-related revenue drying up, Pfizer has been under pressure to find new growth drivers. Obesity was supposed to be one of them, but danuglipron proved to be more of a liability than a breakthrough.
Or… a comeback through the back door?
Behind the scenes, there’s already speculation: will Pfizer try to build something new from scratch, or will they look externally for a faster solution? A potential acquisition of Viking Therapeutics would make a lot of sense strategically. Pfizer has the capital. Viking has the promising science. And the obesity drug window is wide open right now, not five years from now.
Discontinuing danuglipron is a tough blow for Pfizer, but a clear opportunity for others. The decision reshapes the competitive landscape, especially in the segment where convenience (pills over injections) is becoming a key factor for patients and providers alike. The race for the "slim pill" is far from over, but the playing field has definitely shifted. And don’t be surprised if Pfizer re-enters the game, this time through the front door of Viking.
Source: CNBC, Reuters
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