Pfizer stock rises on positive results from weight loss drug study

Yahoo Finance's Rachelle Akuffo details a rise in Pfizer stock after the company announced positive results from the study of a new weight loss drug.

Video transcript

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AKIKO FUJITA: A full peer-reviewed study suggests an oral drug from Pfizer may work quicker for weight loss and as effective as Novo Nordisk's Ozempic injection. We have Yahoo Finance's Rachelle Akuffo here more on this clinical trial. And the results here providing a big pop for Pfizer stock today.

RACHELLE AKUFFO: And we know that these weight loss medications and treatments are all the rage. So as you mentioned, this full peer-reviewed study of the clinical trial of Pfizer's danuglipron, that treatment is out showing that the potential for a faster path to weight loss than the current treatments using diabetes drugs to treat obesity. Now, Pfizer stock rising as participants were able to lose about 10 pounds over the course of 16 weeks versus 9.9 pounds over the course of 30 weeks with Novo Nordisk's current treatment Ozempic a.k.a. Wegovy. Of course, a lot of people know that was used by Elon Musk, but know the different dosage levels as well. Another key difference is that danuglipron is an oral pill versus weekly injections with Ozempic because, obviously, that's something that can be off-putting for people.

Now, the phase II trial of danuglipron followed 411 adults with type 2 diabetes who either took the drug twice a day or a placebo. Now, both of these treatments, danuglipron and Ozempic, they mimic the GLP-1 hormone in the gut. That's that hormone that tells us when the brain-- the brain is telling us that we're full. Side effects, though, also related to the gut, mostly nausea, vomiting, abdominal discomfort, diarrhea, and headaches.

But it's worth noting that this is a bigger, randomized, controlled trial than was used in phase I. That followed 37 patients. And that also means that these trial participants are randomly selected to receive the treatment or the placebo, which also helps introduce less bias as well.

And, of course, we have to mention Eli Lilly, already in this space at the moment with an injectable called Mounjaro. They're seeking FDA approval potentially, some reports saying, might come by the end of this year or potentially beginning of next year. But a reminder, of course, the obesity reduction aspect, this is off label use. These are diabetes drugs. And Wegovy is the only FDA approved treatment out of these so far for chronic weight management.

Now, of course, this isn't just supposed to be some sort of magic pill or magic shot here. This is supposed to be used with a reduced calorie meal plan as well as increased physical activity. So worth keeping that in mind. There are no shortcuts when it comes to overall health, guys.

SEANA SMITH: Certainly not, but we're seeing investors excited about this with shares popping today up just about 5%. Rachelle, thanks.