Shares in Pfizer (NYSE: PFE) were falling recently after it discontinued clinical trials for a potential diabetes and weight-loss therapy. The drop was due to negative perceptions after lotiglipron, a glucagon-like peptide-1 receptor agonist (GLP-1-RA) candidate, showed elevated levels of liver enzymes in some patients.

However, the pharmaceutical company also announced it was going ahead with trials for a different GLP-1-RA candidate, danuglipron, that could be used to treat obesity and Type 2 diabetes.

Neither news item should really matter much in the long term to investors. However, there is one green flag and one red flag that should matter.

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Source Fool.com