Pfizer Inc. has decided to discontinue development of its experimental obesity pill, danuglipron, following a case of potential drug-induced liver injury in a clinical trial participant, which is a serious setback in the company’s efforts to rival popular weight-loss treatments from Novo Nordisk and Eli Lilly.
Pfizer announced that the once-daily pill, which had been under close scrutiny from investors, would not proceed to late-stage trials. Instead, the pharmaceutical giant will redirect resources toward other early-stage obesity drug candidates.
Tapping into the booming obesity market has been a key part of Pfizer’s strategy to recover from declining COVID-related revenues. The global market for weight-loss treatments is projected to hit $130 billion by the end of the decade.
However, Pfizer has struggled to keep pace. Eli Lilly’s Zepbound, a weekly injection, quickly generated close to $5 billion in annual sales after its 2023 launch, and the company is also advancing its own oral obesity treatment. Other players like AstraZeneca and Structure Therapeutics are also pushing forward with oral alternatives.
Pfizer had already abandoned a twice-daily version of danuglipron due to high rates of nausea and vomiting that led many of the 1,400 participants in a mid-stage trial to discontinue treatment. Prior to that, the company shelved another obesity pill after observing troubling liver-related side effects during trials.
The decision puts further pressure on Pfizer CEO Albert Bourla, who has consistently promoted the company’s drug pipeline as a key growth engine. With several major drugs set to lose patent protection by 2030—costing the company an estimated $15 billion in revenue—the failure to deliver a blockbuster obesity treatment is a significant blow.
Despite multiple multi-billion dollar acquisitions aimed at bolstering its portfolio, Pfizer’s internal R&D efforts have yet to deliver major successes. The company’s stock has dropped over 60% since peaking during the pandemic in 2021.
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