Pfizer Clinches $10 Billion Deal To Buy Obesity Drug Maker Metsera, Outbidding Novo Nordisk In Fierce Battle For Weight-Loss Market Dominance

Pfizer Inc. (NYSE:PFE) secured a $10 billion deal to acquire obesity drug developer Metsera, Inc. (NASDAQ:MTSR), beating out Novo Nordisk A/S (NYSE:NVO) after a heated bidding war that captivated Wall Street.

Metsera Board Backs Deal

Under the deal, Pfizer will pay $86.25 per share, consisting of $65.60 in cash and a contingent value right worth up to $20.65 per share, depending on future milestones.

Metsera's board unanimously backed Pfizer's offer on Friday, and recommended shareholders approve the deal at their upcoming Nov. 13 meeting.

Pfizer appeared to have finalised the deal in September, before Novo jumped in last week with an unsolicited offer, sparking a bidding war for a coveted asset in the growing weight-loss market. Metsera’s shares jumped over 30% amid the chatter this week.

The company said Novo’s proposal posed “unacceptably high legal and regulatory risks” after the Federal Trade Commission (FTC) warned that a merger with Novo could raise antitrust concerns.

Also Read: Pfizer Accuses Novo Nordisk Of Antitrust Violations In Metsera Takeover Battle

Novo Nordisk, which briefly appeared to have the upper hand, has been seeking to recover market ground lost to Eli Lilly (NYSE:LLY) in the weight-loss drug sector.

Pfizer Bets Big On Next-Gen Weight-Loss Drugs

Metsera's pipeline includes MET-097i and MET-233i, an experimental amylin analog. Analysts at Leerink Partners estimate the two drugs could reach $5 billion in combined peak annual sales, according to a Reuters report.

The acquisition comes as Pfizer faces declining COVID-19 product sales, with third-quarter revenue down 6% year over year to $16.65 billion, while Ozempic-maker Novo Nordisk posted an 11% rise in constant-currency sales to $11.75 billion, driven by obesity and diabetes treatments.

According to Benzinga's Edge Stock Rankings, Pfizer demonstrates a steady upward trajectory in short and medium-term periods but a downward trend in the long-term. Click here for a detailed breakdown of its performance, along with comparisons to its peers and competitors.