Pfizer (PFE.N), which discontinued a twice-daily version of its weight-loss medication danuglipron late last year, announced on Thursday that it will be entering clinical trials for a modified, once-daily version of the drug later this year.

This new medication is a component of the second generation of weight-loss pills that Novo Nordisk (NOVOb.CO) and Eli Lilly (LLY.N) are developing, which will provide patients with a more convenient option than injections.

By the early 2030s, some analysts project that the weight-loss medication market—which is presently led by Eli Lilly's Zepbound and Novo Nordisk's Wegovy—will generate sales of almost $150 billion annually.

The pharmaceutical company did not specify a precise timetable for the drug's development. Before moving the medication into clinical trials, it intends to assess the reformulated medication at various doses throughout the second half of this year.

After discontinuing the twice-daily version of danuglipron due to a high rate of adverse effects, including nausea and vomiting, Pfizer stated last year that it was concentrating on the development of the new medication.

Another daily medication for weight loss, called lotiglipron, was already discontinued because of safety concerns since some patients had elevated liver enzyme levels.

Eli Lilly's experimental weight-loss tablet has a considerable time-to-market edge over Pfizer's, according to JP Morgan analyst Chris Schott, who expressed concern over the drug's negative effects in a research note.

He stated that he anticipates "a limited role for the asset absent more clarity on the tolerability profile of the new formulation."

Pfizer's stock increased 2.8% to $29.14 in premarket trade.

Due to investor concerns over the company's pipeline, which includes lotiglipron, and a sharp decline in sales of its COVID medicines, the shares, which closed at $28.35 on Wednesday, have lost more than half of their value since peaking at $61 in December 2021.

Over 1,400 healthy adult volunteers did not show any elevated liver enzymes, according to Pfizer's announcement on Thursday regarding the preliminary trial results that supported a once-daily dose.

GLP-1s imitate the GLP-1 hormone's ability to control blood sugar, impede digestion, and reduce hunger. They were first created to treat type 2 diabetes.