Health-care companies experienced a mixed performance in the stock market following a significant setback for one player in the competition to develop an effective weight-loss pill.
Pfizer’s Weight-Loss Drug Fails to Advance
Pfizer, a prominent pharmaceutical company, saw its shares plummet after announcing that it would not proceed with a Phase 3 trial for a twice-daily formulation of their weight-loss drug. This decision came in response to the high occurrence of side effects reported by patients in a previous study. As a result, Pfizer’s stock dropped to pre-pandemic levels, despite the successful launch of their blockbuster Covid-19 vaccine during this challenging period.
Implications for Viking Therapeutics
Although Pfizer’s setback dealt a blow to their obesity pill plans, it could potentially benefit other companies in the sector. In particular, Viking Therapeutics stands out as one of the few remaining companies with promising oral GLP-1 drug candidates. Analysts at brokerage Truist view this development favorably for Viking Therapeutics.
Mixed Results for Competitors
The impact of Pfizer’s news also extended to other players in the obesity-drug market. Shares of Novo Nordisk and Eli Lilly, two prominent makers of weight-loss drugs, retreated from their recent gains.
Leave a Reply