Pfizer Abandons Its Leading Weight Loss Candidate. Should You Sell the Stock?

Core Insights - The weight loss therapy market is rapidly growing, with leading drugs like Wegovy and Zepbound gaining significant sales traction [1] - Pfizer has faced multiple setbacks in its attempts to enter the weight loss market, particularly with its candidates danuglipron and lotiglipron [2][3][5] Group 1: Pfizer's Weight Loss Drug Development - Pfizer discontinued lotiglipron after phase 1 studies due to potential liver issues [3] - The danuglipron program faced challenges, with a twice-daily version showing efficacy but high side effects, leading to its abandonment [4] - Pfizer scrapped the danuglipron project entirely after a phase 2 study indicated liver injury in a patient, marking a significant setback [5] Group 2: Future Prospects and Other Opportunities - Despite setbacks in the weight loss market, Pfizer is not exiting this area and will pursue other therapeutic options [6] - Pfizer's oncology market prospects are more promising, bolstered by the acquisition of Seagen for $43 billion, enhancing its cancer treatment capabilities [7][8] - Pfizer reported a 7% year-over-year revenue increase to $63.6 billion and a 69% rise in adjusted earnings per share to $3.11 [9] Group 3: Investment Considerations - Pfizer's strong financial performance and deep pipeline make it an attractive option for investors, despite recent challenges in the weight loss sector [10] - The stock offers a forward yield of 7.8%, with a 54% increase in dividends over the past decade, appealing to dividend-seeking investors [9]