Pfizer Wins Bidding War for Obesity Drugmaker Metsera, Outbidding Novo Nordisk
Table of Contents
Pfizer has secured a deal to acquire Metsera Inc., a development-stage company focused on obesity and diabetes treatments, after a competitive bidding process against industry leader Novo Nordisk. The acquisition, valued at up to $86.25 per share, marks a significant move for Pfizer to establish a stronger foothold in the rapidly expanding weight-loss market.
Pfizer’s successful bid comes several months after the company paused development of its own obesity pill, signaling a strategic shift towards acquiring existing innovation rather than solely relying on internal research. Metsera, based in New York, currently has no marketed products but is actively developing both oral and injectable therapies targeting metabolic diseases.
A Competitive Landscape in Weight Loss
The pharmaceutical industry is intensely focused on developing effective treatments for obesity, a condition affecting a substantial portion of the global population. Novo Nordisk, the Danish drugmaker behind the popular weight-loss medications Ozempic and Wegovy, had initially emerged as the frontrunner to acquire Metsera. However, concerns over potential U.S. antitrust regulations ultimately swayed Metsera’s board towards accepting Pfizer’s revised offer.
“The board has determined Pfizer’s revised terms represent the best transaction for shareholders, both from the perspective of value and certainty of closing,” a company release stated.
Deal Details and Financial Implications
Pfizer initially made an offer of nearly $4.9 billion in September, but subsequently increased the cash component to finalize the agreement. The final deal consists of $65.60 per share in cash, along with a contingent value right that could provide additional payments of up to $20.65 per share, contingent on future milestones.
Novo Nordisk’s final bid involved $62.20 in cash per share, coupled with a potential contingent value right payment of $24, dependent on the achievement of specific development and regulatory goals.
Closing and Future Outlook
Pfizer expressed satisfaction with the terms of the deal and anticipates closing the transaction shortly after Metsera’s shareholder meeting on November 13. According to an email from Pfizer, the company is “happy with the terms of the deal.”
This acquisition positions Pfizer to compete more effectively in the burgeoning obesity treatment market, potentially offering a diverse portfolio of therapies to address a growing global health challenge. The move underscores the increasing investment and innovation within the pharmaceutical sector focused on metabolic diseases.
