Finally, Pfizer (NYSE:PFE) is making a major move towards the lucrative global weight loss market. The healthcare giant is advancing the development of a once-daily weight loss pill, and this could make it a winner in a market currently dominated by Novo Nordisk’s (NYSE:NVO) Ozempic and Eli Lilly’s (NYSE:LLY) Zepbound.
Pfizer’s Weight Loss Pill
Pfizer’s move comes after it saw promising results from an ongoing pharmacokinetic study. The company’s once-daily treatment, called danuglipron, showed no liver enzyme elevations in over 1,400 trial subjects. Now, Pfizer plans to conduct dose optimization studies to determine a preferred formulation for the drug in H2 2024.
While danuglipron demonstrated good efficacy in a twice-daily formulation, Pfizer sees a higher potential for the drug in the obesity market as a once-daily formulation. The company’s obesity pipeline includes three clinical as well as multiple pre-clinical candidates.
Importantly, the oral nature of the drug could tip the scales in Pfizer’s favor, as the current blockbuster obesity treatments from Novo and Eli Lilly are in the form of injections. According to Bloomberg, the obesity market is expected to balloon to $130 billion by 2030. Pfizer hopes to capture nearly a third of this lucrative pie.
PFE’s Market Entry Could be Tricky
Still, Pfizer’s entry into the obesity market is likely to happen amid stiff competition. Novo Nordisk is planning another production plant in the U.S. amid persistent drug shortages. The company has also secured a key approval in China for its weight loss medication. Additionally, other competitors will have arrived on the scene by the time Pfizer’s pill hits the market.
What Is the Target Price for PFE Stock?
With today’s price gains, Pfizer’s share price is now up by nearly 9% over the past three months. Overall, the Street has a Moderate Buy consensus rating on Pfizer, alongside an average PFE price target of $33.67.
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