Pfizer Scraps Obesity Pill Study, Stock Hits 3-Year Lows

PFE is trading at its lowest levels since before Covid

Pfizer Inc (NYSE:PFE) has been trying to nudge its way into the weight-loss drug buzz with its own twice-daily version called danuglipron. However, the company just pulled the plug late-stage studies of the experimental pill, as patients were experiencing severe side effects such as nausea and vomiting. 

Pfizer stock is down 5.8% to trade at $28.71 after the news, earlier hitting $28.30, its lowest levels since early 2020 (pre-Covid vaccine). Fresh off an eighth-straight monthly loss, PFE is down 44.1% since the start of the year, carving a channel of lower lows throughout 2023. 

In the options pits, PFE is seeing four times the options volume typically seen at this point. So far today, 79,000 calls and 74,000 puts have been exchanged. Expiring at the end of the day, the weekly 12/1 28.50-strike put is the most popular, where new positions are being bought to open. 

Calls have ruled the roost for some time now. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Pfizer stock’s 50-day call/put volume ratio of 3.57 ranks higher than 99% of readings from the past year, showing the rate of call buying is near annual highs. 

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