Pfizer's Newly Acquired Drug Shows Weight Loss Of Just Around 13%, Stock Drops

Core Insights - Pfizer Inc. reported positive topline data from a mid-stage study for its weight loss drug PF'3944 and exceeded fourth-quarter earnings expectations [1][6] Weight Loss Data - The Phase 2b VESPER-3 study showed a mean placebo-adjusted weight loss of up to 12.3% at week 28 for adults with obesity or overweight [2] - At week 28, Arms 1 and 3 achieved 10% and 12.3% placebo-adjusted weight loss, respectively, indicating robust weight loss without a plateau [3] - PF'3944 maintained a favorable safety profile, with mostly mild or moderate gastrointestinal adverse events reported [4] Clinical Development - Pfizer plans to initiate ten Phase 3 trials for PF'3944 in 2026, as part of a broader clinical development program with over 20 studies planned or ongoing [5] Fourth Quarter Earnings Snapshot - Adjusted earnings for Q4 2025 were 66 cents, up from 63 cents year-over-year, surpassing the consensus estimate of 57 cents [6] - Q4 sales decreased by 1% year-over-year to $17.56 billion, exceeding the consensus of $16.96 billion, reflecting a 3% operational decline [6] Revenue Drivers - The operational decline was mainly due to reduced COVID-19 product revenues, partially offset by increases in sales of Abrysvo, oncology biosimilars, and other products [7] - Comirnaty sales fell 35% to $2.27 billion, while Paxlovid sales dropped 70% to $218 million due to lower COVID-19 infections [8] Core Drugs Performance - Sales of the heart drug Vyndaqel family increased by 7% to $1.69 billion, while cancer drug Ibrance sales decreased by 5% to $1.04 billion [9] - Blood thinner Eliquis revenues rose by 8% to approximately $2.02 billion, and Prevnar sales also increased by 8% to $1.71 billion [10] Outlook - Pfizer reaffirmed its fiscal 2026 adjusted earnings guidance of $2.80-$3.00 per share, compared to the consensus of $2.97 [11] - The company expects approximately $5 billion in revenues from COVID-19 products and anticipates a negative revenue impact of about $1.5 billion due to loss of exclusivity for certain products [12] Stock Performance - Pfizer's stock was down 5.10% at $25.30 during the premarket session [13]