Pfizer to remain aggressive on obesity market after setback
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[January 09, 2024]
By Michael Erman
NEW YORK (Reuters) -Pfizer will remain aggressive in trying to break
into the lucrative obesity market, even after dropping a high profile
weight-loss drug candidate late last year due to strong side effects,
Chief Executive Albert Bourla said on Monday.
"Pfizer's position is that we believe that obesity is a place that we
have the ability to play and win. So we will have to play," Bourla told
reporters ahead of his presentation at the JPMorgan healthcare
conference in San Francisco.
Analysts have forecast the overall obesity drug market could reach $100
billion by the end of the decade.
Market leaders Eli Lilly with Zepbound and Mounjaro and Novo Nordisk's
Wegovy are already bringing in billions of dollars. The medicines belong
to a class of drugs called GLP-1 agonists originally developed for type
2 diabetes, including Novo's Ozempic, which has been used off-label for
weight loss.
Bourla said it was unlikely the company would buy an obesity treatment
in later stage development, which would command a multibillion-dollar
price tag, because of Pfizer's current focus on cutting costs and debt
after buying oncology company Seagen for $43 billion.
Still, he said Pfizer was actively scanning the environment for
potential licensing deals or earlier stage weight-loss drugs.
Pfizer has been punished by investors in recent months for a string of
negative news, including weaker-than-expected sales of its COVID-19
vaccine and treatment, that pushed its shares to 10-year lows and drove
the New York-based drugmaker to cut $4 billion in costs.
In early December, Pfizer said it would not advance its twice-daily oral
weight-loss drug danuglipron into late-stage studies. Weeks later, it
warned that 2024 sales would be as much as $5 billion below Wall Street
expectations, mostly due to shortfalls in its COVID franchise.
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CEO of Pfizer Albert Bourla speaks during the Anti-Defamation
League's "Never is Now" summit at the Jacob Javits Convention Center
in Manhattan in New York City, New York, U.S., November 10, 2022.
REUTERS/Jeenah Moon/File Photo
Pfizer's launch of its respiratory
syncytial virus (RSV) vaccine Abrysvo last year has also been a
disappointment, Bourla said, only taking roughly 35% of market share
in the United States, badly lagging a rival vaccine from GSK.
"For me that was very unacceptable and doesn't reflect anything
other than GSK were able to do better contracting and better
commercial execution," Bourla said.
He said most of the RSV vaccines were administered in pharmacies,
where GSK was able to dominate. For much of the season, GSK's was
the only shot offered by CVS Health, the biggest U.S. pharmacy chain
in the U.S. and a dominant player in the retail vaccine market.
Bourla said the company was not happy with the performance of its
commercial operation in 2023. Former Chief Commercial Officer Angela
Hwang stepped down last month, and the company split its commercial
business into two divisions, one focused on the United States and
the other on the rest of the world.
"Overall, Pfizer didn't demonstrate that edge that we had as a
commercial machine that used to be a well oiled machine that was
very credible launching products and we took some measures to
correct that," Bourla said.
(Reporting by Michael ErmanEditing by Bill Berkrot)
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