- Positive mid-stage trial results for obesity drug
- Patients lost ten pounds in 16 weeks
- Big market opportunity
Shares in Pfizer (PFE:NYSE) gained over 5% in US trading last night after the company revealed a full-peer review of mid-stage clinical trial results for its obesity drug danuglipro.
Pfizer’s drug was tested on 441 adults with type-two diabetes who received either the drug or placebo. The study found that patients taking a 120-milligram dose led to an average weight loss of 4.6 kilograms (ten pounds) after 16 weeks.
Pfizer’s danuglipron works by suppressing appetite and was originally developed for treating type-two diabetes.
TAKING ON THE MARKET LEADER
The results demonstrate the drug could offer similar benefits to Danish group Novo Nordisk’s (NOVO-B:CPH) injected diabetes drug Ozempic and weight management drug Wegovy.
Ozempic was approved in 2017 for diabetes while Wegovy was approved in 2021 for weight loss.
In recent years, well known celebrities and social influencers have popularised using obesity drugs to manage weight gain. Reportedly, Elon Musk has used obesity drugs to shed unwanted weight.
A late-stage trial of Wegovy saw patients lose around 33 pounds over a 68-week period taking a small dose of 2.4 milligrams.
Pfizer is also developing an oral equivalent called lotiglipron which would appeal to patients who don’t want to take injections. Novo Nordisk said an oral version of its drug helped patients lose up to 17.4% of their body weight over 68 weeks.
A BIG BUT CROWDED MARKET
Last year Novo Nordisk’s Ozempic sales reached $8.5 billion and this year the drug is expected to generate sales of over $12 billion according to Factset estimates.
Analysts believe the US market for obesity drugs could be worth around $100 billion in annual sales in the medium term. Other drug firms in the race to grab a piece of this growing market include Eli Lilly (LLY:NYSE), Amgen (ANGM:NASDAQ) and Viking Therapeutics (VKTX:NASDAQ)
