Metsera, the US-based obesity drug developer, ended what was turning into a bitter fight between two of the biggest pharmaceutical companies in the world when it accepted Pfizer’s US$10 billion acquisition offer over Novo Nordisk’s upgraded bid.
Pfizer, which has been struggling since post-COVID days, is trying to get a foothold in the growing weight-loss market. According to Morgan Stanley, obesity drug sales could grow from $15 billion last year to $150 billion by 2035.
Novo and Eli Lilly have been the two companies that have dominated the market. Novo is the maker of Ozempic, a semaglutide that is a GLP-1 receptor agonist. Eli Lilly is in the market with a tirzepatide, under the brand name Mounjaro. Novo has been trying to recover its once-commanding position in obesity drugs.
Pfizer made the first move in September with a bid that was said to be in the region of US$7.3 billion. Novo jumped into the picture when it made an unsolicited offer of US$9 billion last week.
Under the terms of the cash deal, Pfizer will pay $65.60 a share upfront and a contingent value right worth up to $20.65 a share, Metsera said Friday.
The bidding war saw Metsera’s share gain nearly 60 per cent in one week, sending its market value to US$8.75 billion.
On Friday, Metsera said in a statement: “The Metsera Board of Directors has determined that the revised terms represent the best transaction for shareholders, both from the perspective of value and certainty of closing.
“In addition, in light of recent circumstances, including the receipt by Metsera of a call from the US Federal Trade Commission regarding potential risks from proceeding with the proposed Novo Nordisk structure under US antitrust laws, the Metsera Board of Directors has further determined that the transaction proposed by Novo Nordisk presents unacceptably high legal and regulatory risks to Metsera and its stockholders compared to the proposed merger with Pfizer, including risks that the initial dividend may never be paid or may be subsequently challenged or rescinded.
“Metsera remains committed to the merger with Pfizer, which Metsera believes will deliver immediate and substantial value to Metsera stockholders, and the parties expect to close promptly following the stockholder meeting on November 13.”
Metsera’s experimental obesity drugs, MET-097i, a GLP-1 injectable, and MET-233i, which mimics the pancreatic hormone amylin, are projected to reach $5 billion in combined peak sales, according to Leerink Partners analyst David Risinger.
