By Elsa Ohlen

Pfizer announced early Monday that it would discontinue the development of an experimental drug for weight management after one patient fell ill.

The drug is similar to treatments by Eli Lilly and Novo Nordisk. Investors had hoped that it could eventually rival blockbuster drugs Zepbound and Wegovy.

One participant in the Phase 3 clinical trial of danuglipron, a so-called oral glucagon-like peptide-1 (GLP-1) receptor agonist, experienced a potential drug-induced liver injury which resolved after discontinuation of the treatment, Pfizer said in a statement Monday.

"While we are disappointed to discontinue the development of danuglipron, we remain committed to evaluating and advancing promising programs in an effort to bring innovative new medicines to patients," Chief Scientific Officer Chris Boshoff said, noting that cardiovascular and metabolic diseases remain important areas of unmet medical need.

Even as Pfizer plans to continue developing other earlier obesity programs, investors will undoubtedly be disappointed. Pfizer declined to comment further on its obesity pipeline.

The stock, down 17% so far this year and down 64% from highs in Dec. 2021 amid the peak of the Covid-19 pandemic, could use a boost.

GLP-1 drugs work by controlling blood sugar levels and appetite. So far, there are no weight-loss medication approved in pill form, which is another reason why investors had been hopeful about Pfizer's danuglipron.

An oral weight-loss drug would likely benefit from higher demand from consumers compared with injectables. It would also make distribution and storing of these drugs easier as, unlike injectables, pills don't require cold storage.

Write to Elsa Ohlen at elsa.ohlen@barrons.com

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April 14, 2025 06:45 ET (10:45 GMT)

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