A Biotech Power Play in the Booming Weight-Loss Sector
Pfizer has clinched a $10 billion acquisition of Metsera, the obesity drug developer at the center of an intense bidding war with Novo Nordisk.
The New York-based pharmaceutical giant's sweetened offer of up to $86.25 per share edged out the Danish company's competing bid, signaling Pfizer's aggressive push into the lucrative weight-loss market.
Metsera's experimental treatments, still in clinical trials, represent a high-stakes bet on future blockbusters akin to Ozempic and Wegovy.
The deal, announced late Friday, follows weeks of legal maneuvering and escalating offers, culminating in Novo Nordisk's decision to withdraw on Saturday.
The Deal's Terms and Shareholder Impact
Under the agreement, Pfizer will pay $65.60 per share in cash, plus a contingent value right worth up to $20.65 per share based on future milestones.
This valuation marks a substantial increase from Pfizer's initial September offer of $47.50 per share, which valued Metsera at billions less.
The revised terms provide immediate value to shareholders, as stated by Pfizer, and come after Metsera's shares surged nearly 60% over the past week amid the bidding frenzy.
The transaction is set to close following a shareholder vote on November 13, pending regulatory approvals.
Metsera's board cited unacceptably high legal and regulatory risks under U.S. antitrust laws in opting for Pfizer over Novo Nordisk's previously deemed superior proposal.
Bidding War Unfolds Amid Legal Tensions
The contest ignited when Novo Nordisk entered with an unsolicited bid last week, prompting Pfizer to file two lawsuits in Delaware federal court accusing Metsera of breach of contract and Novo Nordisk of anticompetitive tactics aimed at stifling competition.
In one filing, Pfizer alleged Novo sought to "capture and kill a nascent American competitor" to safeguard its market dominance.
Novo Nordisk's chief executive, Mike Doustdar, addressed the rivalry during a White House news conference on Thursday, urging Pfizer to outbid if serious.
Ultimately, the Federal Trade Commission's input on antitrust concerns tipped the scales toward Pfizer.
Novo Nordisk, emphasizing its robust internal pipeline, described the pursuit as a non-essential bolt-on acquisition and confirmed it would not raise its offer further.
This outcome bolsters Pfizer's efforts to catch up with leaders like Novo Nordisk and Eli Lilly in the obesity sector, despite Metsera's products being years from commercialization.