Investing.com -- Shares of Structure Therapeutics Inc ADR (NASDAQ: GPCR) climbed 6.8% following the news that Pfizer Inc. (NYSE: NYSE: PFE ) has discontinued the development of its obesity drug candidate, danuglipron. Pfizer’s decision to halt the program for the oral glucagon-like peptide-1 (GLP-1) receptor agonist, which was aimed at chronic weight management, was announced today.

The discontinuation of danuglipron is seen as a positive development for Structure Therapeutics, as it potentially clears the competitive field for the company’s oral small molecule platform targeting obesity. Pfizer’s withdrawal from danuglipron, due to a high discontinuation rate and adverse events such as liver toxicity, has shifted focus to other players in the obesity treatment space. Pfizer itself suggested that it would look to advance its pipeline with other investigative treatments, which could include earlier-stage obesity programs.

Stifel analyst Annabel Samimy commented on the situation, stating, "We see GPCR (Buy, $15.90) as also having a comprehensive oral small molecule platform (GLP-1 and potentially amylin scaffold), though we think the Ph.2 ACCESS programs (4Q25) will critical to establish its profile, with AEs needing better characterization through slower titration." This endorsement from a credible analyst may have contributed to the positive investor sentiment surrounding Structure Therapeutics’ stock.

Pfizer’s announcement has highlighted the competitive landscape of the obesity drug market, where large pharmaceutical companies are searching for viable treatments. The discontinuation of danuglipron due to adverse events underscores the importance of safety and tolerability in drug development. As Structure Therapeutics prepares for its Phase 2 ACCESS programs, expected in the fourth quarter of 2025, the company aims to better characterize adverse events through slower titration, which could differentiate its drug profile in the long run.

Investors in Structure Therapeutics are likely responding to the potential for the company’s platform to gain traction in the obesity space, especially in light of Pfizer’s recent step back from a competing product. As the market reacts to these developments, Structure Therapeutics’ stock movement today reflects an optimistic outlook on its future prospects in the obesity treatment market.

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