Monday, at the JP Morgan Healthcare Conference, Pfizer Inc (NYSE: PFE) CEO Albert Bourla expressed that the company is determined to move forward in the burgeoning obesity market despite setbacks involving a terminated weight-loss drug candidate due to severe side effects.
Major players like Eli Lilly And Co (NYSE: LLY) with Zepbound and Mounjaro and Novo Nordisk A/S's (NYSE: NVO) Wegovy already contribute significantly to this market.
These drugs, falling under the GLP-1 agonists category initially developed for type 2 diabetes, have displayed substantial revenue-generating capabilities. Novo's Ozempic, repurposed off-label for weight loss, is an example.
Citing analysts' projections, Reuters reports that the obesity drug sector could potentially surge to a $100 billion valuation by the decade's close.
While affirming Pfizer's ongoing pursuit of cost reduction and debt alleviation after acquiring Seagen for $43 billion, Bourla indicated reluctance to acquire a later-stage obesity treatment, citing potential multibillion-dollar costs.
However, he emphasized Pfizer's active exploration for licensing deals or earlier-stage weight-loss medications.
In December, Pfizer reported topline data from the Phase 2b trial of danuglipron (PF-06882961) in adults with obesity and without type 2 diabetes.
The company says the study met its primary endpoint, demonstrating a statistically significant change in body weight from baseline, but danuglipron was tied to "high rates" of mild gastrointestinal side effects, leading to more than half of the patients across all dose groups dropping out from the trial.
Subsequently, Pfizer revised its 2024 sales forecast, expecting a shortfall of up to $5 billion compared to Wall Street estimates, primarily due to COVID-related setbacks.
Additionally, Bourla addressed Pfizer's disappointment with the performance of its RSV vaccine Abrysvo, securing only about 35% of the U.S. market share, lagging behind GSK Plc's (NYSE: GSK) rival vaccine.
Price Action: PFE shares are up 0.61% at $29.76 during the premarket session on the last check Tuesday.