Pfizer and Novo Nordisk Escalate Bidding War for Obesity Biotech Metsera

In a dramatic turn of events, the pharmaceutical industry is witnessing an intensifying battle between two giants, Pfizer and Novo Nordisk, for the acquisition of obesity biotech Metsera. The bidding war has not only reached unprecedented financial heights but has also spilled into the legal arena, highlighting the strategic importance of obesity therapies in the current pharmaceutical landscape.

Novo Nordisk's $10 Billion Counteroffer Shakes Up Pfizer's Plans

Just minutes before Pfizer's scheduled earnings report on Tuesday, Novo Nordisk lobbed a $10 billion bid for Metsera, surpassing Pfizer's revised proposal of $8.1 billion submitted just a day earlier. This latest offer from Novo Nordisk represents a significant premium over Pfizer's initial September bid of $7.27 billion, which included contingent value rights.

Metsera's board has deemed Novo Nordisk's offer superior, giving Pfizer a two-day window to respond. The rapid escalation of bids underscores the perceived value of Metsera's obesity pipeline in a market that both pharmaceutical companies are eager to dominate.

Legal Battles and Antitrust Concerns

Pfizer CEO Albert Bourla, speaking during the company's earnings call, strongly criticized Novo Nordisk's bid, characterizing it as "an illegal attempt by a foreign company to do an end run around antitrust laws." Bourla argued that Novo's acquisition is unlikely to clear regulatory hurdles due to competition concerns.

In response to the situation, Pfizer has filed litigation against Metsera, Novo Nordisk, and Metsera's lead shareholders, alleging "tortious interference." This legal maneuver adds another layer of complexity to the already contentious acquisition process.

Pfizer's Defense and Strategic Rationale

Despite the challenges, Pfizer remains committed to acquiring Metsera. Bourla defended the company's pursuit, stating, "We have seen the data, we did extensive due diligence, and we priced the asset into a price that we thought offers tremendous value to the shareholders of Metsera and to shareholders of Pfizer."

Bourla emphasized Pfizer's "distinct advantages" in commercial business and R&D infrastructure, drawing parallels to the company's success with cardiovascular drugs like Eliquis and Vyndaqel. He expressed confidence that the acquisition would "create substantial value for shareholders and advance innovation to bring important medicines to patients in the high-growth therapeutic area of obesity."

Pfizer's Q3 Performance Amidst Acquisition Drama

While the Metsera bidding war dominated discussions, Pfizer reported solid third-quarter results. The company achieved $16.65 billion in revenue, driven by strong performances from Eliquis, Comirnaty, and Xeljanz. Earnings per share reached 87 cents, surpassing consensus estimates by 38%.

However, Pfizer's COVID-19 portfolio showed mixed results. Paxlovid revenues declined by 55% operationally to $1.2 billion, while Comirnaty exceeded expectations with $1.2 billion in revenue for the quarter.

As the pharmaceutical industry watches this high-stakes acquisition battle unfold, the outcome will likely have far-reaching implications for the competitive landscape in obesity therapeutics and signal the industry's strategic priorities in the coming years.