Pharmaceutical and biotechnology giant Pfizer (NYSE:PFE) suffered a setback as it announced that it was halting the Phase 3 study of its weight loss drug candidate, danuglipron. The company also announced topline data from the Phase 2b clinical trial of danuglipron (PF-06882961) in adults with obesity and without type 2 diabetes.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The study showed that patients dosed twice a day with danuglipron indicated “statistically significant reductions from baseline in body weight for all doses,” and the study “met its primary endpoint.”
The company stated that the most common adverse events were mild and gastrointestinal. Still, high discontinuation rates of over 50% were seen across all doses compared to around 40% with placebo.
Mikael Dolsten, MD., PhD., Chief Scientific Officer & President, Pfizer R&D, commented, “We believe an improved once-daily formulation of danuglipron could play an important role in the obesity treatment paradigm, and we will focus our efforts on gathering the data to understand its potential profile.”
As a result, the company will focus on a once-a-day formulation of danuglipron, with pharmacokinetic data anticipated in the first half of next year.
Pfizer is Getting Sued By Texas
Meanwhile, in another setback for the company, Texas Attorney General Ken Paxton has sued Pfizer, accusing the company of misrepresenting the efficacy of its COVID-19 vaccine. Paxton has filed a complaint in a Lubbock County state court and has alleged that Pfizer misled people about its COVID-19 vaccine’s 95% efficacy.
The Attorney General has claimed that Pfizer’s efficacy claim was based on only two months of clinical trial data. Instead, according to Paxton, the vaccine was just 0.85% effective based on “absolute risk reduction.”
The complaint states, “Pfizer intentionally misrepresented the efficacy of its COVID-19 vaccine and censored persons who threatened to disseminate the truth in order to facilitate fast adoption of the product and expand its commercial opportunity.”
Paxton’s lawsuit seeks to prevent false claims, end the silencing of “truthful speech” about its vaccine, and impose over $10 million in fines for violating a Texas law about deceptive marketing.
In response, Pfizer has denied any wrongdoing and has stated that its vaccine efficacy claims have been “accurate and science-based.” Last month, Paxton had accused Pfizer of selling low-quality ADHD drugs.
Is Pfizer a Buy, Hold, or Sell?
Analysts remain cautiously optimistic about PFE stock with a Moderate Buy consensus rating based on five Buys and eight Holds. As PFE stock has slid by more than 35% year-to-date, the average PFE price target of $39.91 implies an upside potential of 31% at current levels.
