U.S. pharmaceutical giant Pfizer has secured a pivotal acquisition, finalizing a deal to purchase the development-stage obesity drugmaker Metsera Inc. This strategic move comes after intense bidding competition with Novo Nordisk, the Danish pharmaceutical firm known for its leading weight-loss treatments, Ozempic and Wegovy.
Metsera, located in New York, currently does not have any products available on the market. However, it is in the process of developing both oral and injectable treatments aimed at addressing significant areas within the obesity and diabetes sectors. The acquisition is especially noteworthy as Pfizer seeks to establish a foothold in the growing obesity treatment market, following its recent decision to halt development on a potential pill treatment for obesity.
In a statement released by Metsera, the financial terms of the deal were outlined, with Pfizer agreeing to acquire the company at a price of up to $86.25 per share. This includes $65.60 per share in cash and a contingent value right that may grant shareholders additional payments of up to $20.65 per share, contingent on certain conditions.
Metsera’s board indicated that the choice to partner with Pfizer was influenced by concerns over U.S. antitrust risks associated with Novo Nordisk’s bid. They concluded that Pfizer’s enhanced offer represented the most advantageous transaction for shareholders in terms of both value and the certainty of closing the deal.
The bidding war intensified shortly before Pfizer’s acquisition was finalized. Just three days prior, Novo Nordisk escalated its offer to as much as $10 billion for Metsera, surpassing its earlier bid of up to $9 billion that had previously led to a lawsuit from Pfizer. To counter this, Pfizer revised its original September offer of nearly $4.9 billion to provide more upfront cash, which Metsera acknowledged in their decision-making process.
Pfizer expressed satisfaction with the terms of the acquisition and anticipates concluding the transaction shortly after the Metsera shareholder meeting scheduled for November 13. In a decisive turn, Novo Nordisk announced it would not raise its offer further and would bow out of the bidding race for Metsera.
Novo Nordisk’s bid had proposed a payment of $62.20 in cash for each Metsera share, an increase from its earlier offer of $56.50. Additionally, they had promised a contingent value right payment of $24 contingent on the achievement of specific development and regulatory milestones.
As the landscape of anti-obesity treatments continues to evolve, Pfizer’s acquisition positions it strategically to compete with existing players in this lucrative market, potentially leading to a new wave of innovative therapies for obesity and related health conditions.
