Pfizer acquires Metsera in $10 billion deal after competitive bidding with Novo Nordisk

Pfizer Inc. has agreed to acquire Metsera Inc., a weight-loss drug startup, in a deal valued at $10 billion deal. This acquisition follows a fierce bidding competition with rival pharmaceutical company Novo Nordisk A/S.

While the transaction is not yet closed officially closed, this announcement puts Pfizer in position to successfully win the bidding competition for the startup with Novo Nordisk, Bloomberg reported.

Deal structure

Metsera announced late on Friday that Pfizer's offer includes a payment of up to $86.25 a share, comprising an initial $65.60 a share in cash. The deal also provides for potential additional payments of up to $20.65 per share contingent on the achievement of certain milestones.

Metsera’s board has determined the new Pfizer bid was “the best transaction for shareholders,” the company said in a statement.

The new deal is 5 cents a share higher than Pfizer’s previous bid for the weight-loss drug startup. Bloomberg News had reported earlier on Friday that Pfizer had increased its offer.

Is it a comeback for Pfizer?

The acquisition marks a key strategic move for Pfizer, which is betting on Metsera’s drug pipeline to compete with leading rivals, and develop a combination of therapies, that executives believe could change the standard of obesity treatment in the coming years, Bloomberg said in a news report earlier.

Pfizer had stopped producing its own internal obesity pill in April after one patient in a clinical trial developed signs of liver injury, sparking speculation that the company would now seek to break into the highly-competitive weight-loss market with acquisitions. The setback also increased pressure on Chief Executive Officer Albert Bourla to replenish Pfizer’s pipeline.

Why was there a fierce bidding for Metsera?

Metsera is seen as one of the several next-generation hopefuls in the obesity drug market. The company is developing a handful of experimental weight-loss treatments, including an injectable drug that could be taken less often than the market-leading drugs from Eli Lilly & Co. and Novo Nordisk A/S.

In a recent study, one of its drug, MET-233i, helped patients lose up to 8.4% of their weight in just 36 days. It’s still in the early stages of development, meaning it’s several years away from reaching patients, Bloomberg reported earlier.