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Pfizer Wins $10 Billion Battle for Metsera After Novo Nordisk Pulls Out of Bidding War
Pfizer has clinched a $10 billion deal to acquire obesity drugmaker Metsera, defeating Novo Nordisk in a high-stakes bidding war. Metsera’s board approved Pfizer’s $86.25-per-share offer, citing lower regulatory risk. The acquisition strengthens Pfizer’s push into the fast-growing weight-loss drug market, as analysts call it a bold bet on the future of GLP-1 and amylin-based therapies.
Pfizer Secures $10 Billion Deal to Acquire Obesity Drugmaker Metsera After Novo Nordisk Exits
November 8 | New York — Pfizer Inc. (PFE.N) has won the high-stakes race to acquire obesity drug developer Metsera Inc. (MTSR.O) with a $10 billion all-cash offer, ending a dramatic bidding war with Denmark’s Novo Nordisk (NOVOb.CO).
Metsera announced on Friday that its board has accepted Pfizer’s revised offer of $86.25 per share in cash, representing a 3.7% premium over its closing price. The deal includes $65.60 per share in cash and an additional contingent value right (CVR) worth up to $20.65 per share, depending on future milestones.
The decision marks the end of a tense takeover battle that erupted last week when Novo made an unsolicited offer, challenging Pfizer’s earlier agreement reached in September. Both companies had been competing to strengthen their foothold in the rapidly expanding weight-loss drug market, valued at over $100 billion globally.
Novo Nordisk Bows Out
Novo Nordisk confirmed on Saturday that it will not raise its offer, saying after “careful consideration” it decided to withdraw from the bidding process.
“After a competitive and thorough evaluation, Novo Nordisk will not increase its offer for Metsera,” the company said in a statement.
Metsera’s shares surged nearly 60% over the past week, boosting its market capitalization to $8.75 billion, amid the takeover speculation.
The Danish firm, known for its blockbuster weight-loss drugs Ozempic and Wegovy, had sought to reclaim dominance in the obesity segment after losing ground to rival Eli Lilly (LLY.N).
Regulatory Hurdles Favored Pfizer
In its statement, Metsera said Novo’s proposal carried “unacceptably high legal and regulatory risks” compared to Pfizer’s. The U.S. Federal Trade Commission (FTC) had warned earlier in the week that Novo’s proposed acquisition could raise antitrust concerns.
Novo countered that its offer was “fully compliant with competition laws,” but the FTC letter effectively tilted the balance in Pfizer’s favor.
Pfizer said it was “pleased to have reached a revised agreement with Metsera” and expects to close the merger shortly after Metsera’s shareholder meeting on November 13.
Analysts Call Pfizer’s Bet ‘Bold and Costly’
Analysts say Pfizer’s $10 billion valuation reflects aggressive growth expectations. Bernstein’s Courtney Breen noted that Pfizer will need Metsera to generate at least $11 billion in revenue by 2040, nearly double current forecasts, to justify the price tag.
“Long-term pricing pressures in the GLP-1 segment could weigh on margins,” Breen added.
Metsera’s board has unanimously recommended shareholders approve the Pfizer offer. The biotech firm remains unprofitable, and analysts expect losses to continue until its pipeline of experimental obesity drugs reaches commercialization.
Pfizer’s acquisition battle recalls its 2000 takeover of Warner-Lambert, a $90 billion deal that gave it control of the blockbuster cholesterol drug Lipitor, said former Pfizer R&D chief John LaMattina.
“While this deal is smaller, Pfizer clearly sees Metsera’s pipeline as vital to its future,” he added.
According to Leerink Partners, Metsera’s experimental drugs — MET-097i, a GLP-1 injectable, and MET-233i, an amylin-mimicking therapy — could together generate up to $5 billion in annual sales once approved.
