Novo Nordisk Outbids Pfizer in High-Stakes Battle for Obesity Biotech Metsera

The pharmaceutical industry was jolted this week as Novo Nordisk launched a surprise $10 billion bid for obesity drug developer Metsera, outmaneuvering Pfizer's previous $7.27 billion offer. This latest development has escalated into a high-profile bidding war between two pharmaceutical giants, with significant implications for the rapidly growing obesity treatment market.

Novo's Bold Move Shakes Up Acquisition Landscape

In a dramatic turn of events, Novo Nordisk submitted an unsolicited proposal to acquire Metsera for $10 billion, consisting of $6.5 billion in upfront cash and $3.5 billion in potential milestone payments. This offer significantly surpasses Pfizer's original bid of $4.9 billion upfront with $2.37 billion in contingent value rights (CVRs).

Metsera's board has deemed Novo's proposal "superior," triggering a four-day window for Pfizer to counter. The Danish pharma giant's offer represents a 159% premium to Metsera's share price as of September 19, when Pfizer initially announced its acquisition plans.

Legal Battle Unfolds as Pfizer Fights Back

Pfizer, unwilling to concede defeat, has taken swift legal action to protect its interests. The company has filed two separate lawsuits in Delaware courts against Metsera, Novo Nordisk, and Metsera's lead shareholders. Pfizer alleges breach of contract, tortious interference, and anticompetitive behavior.

In a statement, Pfizer CEO Albert Bourla said, "It is an illegal attempt by a foreign company to do an end run around antitrust laws, taking advantage of the government shutdown. What they want is to catch and kill an emerging competitor, which is a significant antitrust concern given Novo's dominant market position."

Pfizer argues that Novo's offer is "illusory" and cannot constitute a superior proposal due to significant regulatory risks. The company has also received early clearance from the U.S. Federal Trade Commission for its original deal, which it claims positions it to close the acquisition shortly after Metsera's November 13 stockholder meeting.

Stakes High in Booming Obesity Drug Market

The intense competition for Metsera underscores the pharmaceutical industry's growing focus on obesity treatments. Metsera's pipeline includes MET-097i, a phase 2b injectable GLP-1 receptor agonist with potential for monthly dosing, as well as a monthly injectable amylin analog and an oral GLP-1 agonist.

For Pfizer, acquiring Metsera represents a crucial opportunity to re-enter the obesity market following setbacks in its internal pipeline. Novo Nordisk, already a dominant player in the field with its blockbuster drug Wegovy, seeks to further solidify its position and fend off emerging competitors.

The outcome of this acquisition battle could significantly impact the future landscape of obesity drug development and market dynamics. As the situation continues to unfold, industry observers await Pfizer's next move and potential regulatory scrutiny of Novo's proposal.