In a heated bid for the weight-loss drug start-up Metsera, Pfizer has upped its offer to match Novo Nordisk’s recent valuation of the company at $10 billion. This back-and-forth escalation complicates matters in an industry where the stakes are high for capturing a share of the rapidly growing obesity drug market, projected to reach $100 billion by the end of the decade.
Pfizer’s latest proposal mirrors Novo’s $86.20 per share offer, which was made public earlier this week. Reports indicate that Pfizer’s bid will primarily consist of upfront cash, along with contingent payments tied to clinical milestones achieved by Metsera. The competition has intensified since Novo Nordisk initially launched an unsolicited bid to acquire Metsera, marking a challenge to Pfizer’s prior agreement with the biotech established last September.
Both companies are vying not only for Metsera’s current assets but also its potential pipeline of weight-loss drugs, including a promising monthly injectable. This highlights the strategic importance of entering the obesity treatment landscape, where players like Novo Nordisk, the maker of Ozempic, have established themselves alongside competitors like Eli Lilly.
The battle has also taken a legal turn. After Novo’s public bid was issued, Pfizer moved to block it in court, arguing that Novo’s two-step payment plan was illegal. However, a Delaware judge ruled against Pfizer, allowing Novo’s proposal to proceed. Despite this setback, Pfizer remains steadfast, vowing to pursue legal action against Novo, asserting that the latter’s deal structure aims to evade antitrust scrutiny.
Under the current merger framework, Novo is not bound by a fixed deadline to present any improved offers, creating a dynamic situation where Pfizer must react within two days or withdraw if a counterbid emerges. Shareholders are expected to vote on the deal on November 13, and both firms have come under the scrutiny of the U.S. Federal Trade Commission (FTC). The agency has indicated concerns that Novo’s offer may violate antitrust laws, prompting them to request clarifications from both companies before any transaction proceeds.
Novo insists it is engaging in constructive dialogue with the FTC and believes its offer complies with competition regulations. In contrast, Pfizer has expressed optimism regarding the FTC’s involvement, perceiving it as validation for their stance against what they describe as Novo’s “unprecedented and illegal” approach.
As the bidding war unfolds, Metsera’s share prices reflect the growing interest, with a notable 8% increase in after-hours trading, currently hovering just above $77. This ongoing competition underscores the fierce battle for dominance in an increasingly valuable sector of pharmaceuticals focused on combating obesity.
