Novo Nordisk Challenges Pfizer with $8.5B Bid for Obesity Biotech Metsera

In a surprising turn of events, Novo Nordisk has launched an unsolicited $8.5 billion bid to acquire obesity drug developer Metsera, challenging Pfizer's previously announced $7.27 billion deal. This move has ignited a fierce bidding war between two pharmaceutical giants, highlighting the industry's growing focus on the lucrative obesity treatment market.

Novo's Bold Counteroffer

Novo Nordisk's proposal includes $6.5 billion in upfront cash, valuing Metsera's shares at $56.50 each, plus $2.5 billion in contingent value rights (CVRs). This offer surpasses Pfizer's September deal, which consisted of $4.9 billion upfront and $2.37 billion in CVRs.

Metsera's board has deemed Novo's offer "superior," triggering a four-day window for Pfizer to counter. The biotech's shares surged more than 17% in pre-market trading following the announcement.

Pfizer's Strong Reaction

Pfizer swiftly responded to Novo's bid, branding it a "reckless and unprecedented proposal." The company argued that the offer is "an attempt by a company with a dominant market position to suppress competition in violation of law by taking over an emerging American challenger."

Pfizer maintains that its original deal with Metsera remains binding and has threatened to "pursue all legal avenues" to enforce its rights. The U.S. pharma giant claims that Metsera had previously rejected an offer from Novo due to regulatory risks and potential delays in closing the deal.

Metsera's Promising Pipeline

At the heart of this high-stakes battle is Metsera's portfolio of obesity and diabetes treatments. The biotech's pipeline is led by MET-097i, a phase 2b injectable GLP-1 receptor agonist with potential for monthly dosing. Additionally, Metsera is developing a monthly injectable amylin analog and an oral GLP-1 agonist designed to overcome challenges faced by existing treatments.

Novo Nordisk stated that acquiring Metsera would provide "the opportunity to maximise the potential of Metsera's complementary portfolio and capabilities," aligning with its strategy to develop innovative medicines for obesity and diabetes.

Industry Implications

This bidding war underscores the pharmaceutical industry's intense interest in the obesity drug market. BMO Capital Markets analysts predict that other obesity-focused biotechs may see increased stock market activity as a result of this development.

The outcome of this acquisition battle could have significant implications for the competitive landscape in obesity treatment, potentially reshaping the market dynamics and accelerating the development of next-generation therapies.