Markets might reward value investors who bet on Pfizer (PFE) as shares trade at one-year lows. After the firm ended its clinical development of lotiglipron, stock selling accelerated.
The oral drug aimed to treat obesity and Type 2 diabetes mellitus. Pfizer discontinued the program last week. It found an increase in liver enzyme transaminases. Fortunately, none of the study subjects developed liver-related symptoms or side effects.
Pfizer is cutting its losses early. The drug market for obesity is not covered by insurance or the big government. This hurts the revenue potential.
Danuglipron is an antagonist small-molecule GLP-1R. The company will continue this study. It is an oral weight loss drug candidate that might bring $100 billion in revenue. Still, the drug is in phase 2B. To move to phase 3, Pfizer must report minimal side effects such as vomiting.
Minimal Catalysts
Pfizer is currently seeking approval of acquiring Seagen (SGEN). The $43 billion purchase price for the cancer drug maker is not a catalyst. Furthermore, Pfizer lost the Covid vaccine and antiviral catalysts when the virus mutated. The market for the vaccine is for the highly vulnerable people. This hurts Pfizer’s revenue potential.
Pfizer’s downtrend might end. Investors may only speculate. Wait for stronger catalysts before buying PFE stock.
