What's Next for Pfizer After the Company Pulls Its Weight Loss Drug?

Core Insights - The anti-obesity drug market is projected to reach at least $100 billion by 2030, attracting significant interest from healthcare companies [1] - Pfizer has decided to halt the development of danuglipron, a daily GLP-1 weight-loss drug, due to concerns over elevated liver enzymes in trial participants [2][3] - Pfizer's current pipeline includes over 110 clinical trials, but only one other drug for chronic weight management, PF-07976016, is in phase 2 development [4] Company Strategy - Pfizer has a history of acquisitions to enhance growth prospects, exemplified by its $43 billion acquisition of Seagen in 2023 [5] - The current market conditions may allow Pfizer to acquire a promising GLP-1 drug at a lower cost, potentially enhancing its portfolio [6] - With over $20.5 billion in cash and short-term investments, Pfizer is well-positioned to pursue acquisitions [7] Stock Performance - Pfizer's stock has declined 17% since the beginning of January, making it relatively cheap with a yield of 7.8%, compared to the S&P 500 average of 1.5% [8] - The stock trades at 16 times its trailing earnings, which is considered attractive for a leading healthcare company [9] - Despite the setback with danuglipron, Pfizer remains a strong player in the healthcare sector with potential for long-term growth [10]