Pfizer ( PFE.N ), which discontinued a twice-daily version of its weight loss drug danuglipron late last year, said on Thursday it will begin clinical trials of a modified once-daily version of the drug later this year.
The new drug is part of a second generation of diet pills being developed by Novo Nordisk ( NOVOb.CO ) and Eli Lilly ( LLY.N ) to give patients a more convenient option than injections.
In the early 1930s, some analysts predicted that the weight-loss drug market — currently led by Eli Lilly’s Zepbound and Novo Nordisk’s Wego — would generate sales of nearly $150 billion a year.
The pharmaceutical company did not specify the exact schedule for the development of the drug. Before moving the medication into clinical trials, it intends to assess the reformulated medication in different doses during the second half of this year.
After withdrawing a twice-daily version of danuglipron due to high rates of side effects, including nausea and vomiting, Pfizer said last year it was focusing on developing a new drug.
Another daily weight-loss drug, called lotigliprone, has already been withdrawn due to safety concerns, as some patients had elevated levels of liver enzymes.
Eli Lilly’s experimental diet pill has a significant time-to-market advantage over Pfizer, according to JP Morgan analyst Chris Schott, who expressed concern about the drug’s negative effects in a research note.
He said he expected “a limited role for the asset without much clarity on the tolerability profile of the new formulation.”
Pfizer shares rose 2.8% to $29.14 in premarket trade.
With investor concerns about the company’s pipeline, which includes lotigliprone, and a sharp decline in sales of its COVID drugs, the stock, which closed at $28.35 on Wednesday, has lost more than half its value since a peak of $61 in December 2021.
More than 1,400 healthy adult volunteers showed no elevated liver enzymes, according to Pfizer’s announcement Thursday of the results of a preliminary study that supported once-daily dosing.
GLP-1s mimic the GLP-1 hormone’s ability to control blood sugar, prevent digestion, and reduce hunger. They were first created to treat type 2 diabetes.
