Novo Nordisk Challenges Pfizer with $6.5B Bid for Obesity Biotech Metsera

In a surprising turn of events, Novo Nordisk has made an unsolicited $6.5 billion bid for obesity drug developer Metsera, challenging Pfizer's previously announced acquisition of the biotech firm. This move has sparked a fierce bidding war between two pharmaceutical giants, highlighting the industry's intense focus on the rapidly growing obesity treatment market.

Novo's Counteroffer and Metsera's Response

Novo Nordisk's proposal offers Metsera shareholders an equity value of $6.5 billion, with an additional $2.5 billion tied to milestone achievements. This bid surpasses Pfizer's original offer of $4.9 billion upfront plus $2.4 billion in potential milestone payments, announced just over a month ago.

Metsera's board has deemed Novo's offer "superior," stating that the combined equity value could reach approximately $9 billion. The biotech company has notified Pfizer of the competing bid, triggering a four-day window for Pfizer to counter.

Pfizer's Reaction and Legal Implications

Pfizer has responded forcefully to Novo's bid, labeling it a "reckless and unprecedented proposal." The U.S. pharmaceutical company argues that Novo's 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 contends that Metsera had previously rejected an offer from Novo, opting instead for Pfizer's bid due to greater certainty of acquiring 100% of the biotech's equity. The company has stated its readiness to "pursue all legal avenues to enforce its rights under its agreement" with Metsera.

Strategic Implications for Both Companies

This unexpected development comes at a critical juncture for both pharmaceutical giants. For Pfizer, Metsera's acquisition represents a crucial component in its strategy to re-enter the obesity market following recent setbacks in its weight loss portfolio. The potential loss of this deal could significantly impact Pfizer's plans in this therapeutic area.

For Novo Nordisk, the bid marks an aggressive move under newly appointed CEO Maziar Mike Doustdar. The company views the acquisition as an opportunity to "maximize the potential of Metsera's complementary portfolio and capabilities," aligning with its long-term strategy in obesity and diabetes treatment. This comes in the wake of Novo's recent announcements to lay off approximately 9,000 employees worldwide and discontinue its cell therapy R&D efforts.

Metsera's Pipeline and Market Potential

At the heart of this bidding war is Metsera's promising drug pipeline, which includes MET-097i, a phase 2b injectable GLP-1 receptor agonist with potential for monthly dosing. The biotech is also developing a monthly injectable amylin analog and an oral GLP-1 agonist designed to overcome limitations of current small molecule and peptide therapies.

The intense interest in Metsera underscores the pharmaceutical industry's recognition of the significant market opportunity in obesity treatment. As the bidding war unfolds, it remains to be seen how this high-stakes acquisition battle will reshape the competitive landscape in the obesity drug market.