Pfizer's Bold Step in the Obesity Drug Market

Pfizer released trial data on a new obesity drug, raising concerns about tolerability. Despite a stock drop, the company aims for approval by 2028. The drug, promising substantial weight loss, faces challenges with side effects. Pfizer's recent strong earnings signal its strategic investments in weight-loss treatments.

Pfizer's latest trial data on an obesity drug from its $10 billion Metsera acquisition raises concerns about patient tolerability. Despite the announcement, Pfizer's shares dropped over 3%. The drug, a monthly injection, promises sustained weight loss, targeting a 2028 approval in the burgeoning weight-loss market.

Alongside robust fourth-quarter earnings surpassing Wall Street expectations, Pfizer announced plans to advance over 20 clinical trials in obesity treatments, potentially mitigating competition for older drugs losing patent protection. CEO Albert Bourla highlighted the strategy's foundation in targeting groundbreaking medicines within a potential $150 billion market.

While the drug shows promise, concerns linger over side effects leading to patient discontinuation. In trials, 10% dropped out due to adverse effects, raising questions about future dropout rates with higher doses. Despite this, Pfizer is optimistic, leveraging its Metsera acquisition to carve a niche in the lucrative weight-loss drug sector.

(With inputs from agencies.)