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Pfizer (NYSE:PFE) shares hit a brand new 52-week low on Friday after saying that its twice-daily oral weight reduction candidate danuglipron won’t attain late-stage growth as a Section 2 readout flagged its security issues.
Nonetheless, the corporate has not given up its hopes within the weight reduction area after its first weight problems candidate, lotiglipron, met an analogous destiny in June after sufferers in its early-stage trials witnessed a rise in sure liver enzymes.
The New York-based pharma large intends to review danuglipron, a GLP-1 receptor agonist just like lotiglipron, as a once-daily formulation (QD), anticipating early information in H1 2024.
The announcement has buoyed biotechs with oral weight reduction candidates in growth, similar to Viking Therapeutics (NASDAQ:VKTX) and Construction Therapeutics (NASDAQ:GPCR).
Eli Lilly (LLY) and Novo Nordisk (NVO) (OTCPK:NONOF), the makers of FDA-approved weight reduction medicine and builders of oral GLP-1 agonists, are buying and selling flat. Amgen (AMGN), Rhythm Prescription drugs (NASDAQ:RYTM), Altimmune (ALT) and AstraZeneca (AZN) additionally function out there.
Regardless of the setback, JPMorgan analyst Chris Schott remained Impartial-rated on Pfizer (PFE), citing a considerably restricted draw back to shares with earnings anticipated to stay within the mid-$3 vary via the last decade, setting a flooring to the valuation.
Citing tolerability issues, the analyst with a $34 per share goal on PFE questions if Section 3 trials or a once-daily formulation will yield optimistic outcomes.
Financial institution of America analyst Geoff Meacham issued related remarks. “Whereas we do not count on weight problems will probably be a zero-sum sport, we expect tolerability points will stay an overhang on danuglipron and additional delay Pfizer’s entry into the therapy paradigm, behind Lilly and Novo however probably Amgen as nicely,” Meacham, with a Impartial ranking and a $38 per share goal, wrote.
Barclays analyst Carter Gould wrote that Pfizer (PFE) should search for exterior property to fill its void within the weight reduction area, even when “the QD formulation might preserve some hope alive.” Gould has an Equal Weight ranking and a $34 worth goal on PFE.
With the twice-daily research halted and once-daily information unlikely till H1 2024, “we expect PFE has fallen additional behind friends,” UBS analyst Trung Huynh wrote, including that danuglipron as an oral weight reduction remedy “has floor to make up.” Huynh reaffirms his Impartial ranking and 12-month worth goal of $34.