Weight-Loss Drug Startup Goes to Pfizer on $10B Bid

Pfizer has agreed to acquire weight-loss drug startup Metsera in a deal valued at more than $10 billion, surpassing rival Novo Nordisk after a competitive bidding process. The agreement, announced Friday, will see Pfizer pay $65.60 per share in cash plus a contingent value right of up to $20.65 per share. Novo Nordisk said Saturday it decided not to increase its offer, leaving the field to Pfizer, per the AP. Metsera shareholders are to vote on the deal Thursday, and Pfizer expects the transaction to close soon after approval. Pfizer said it plans to use its global resources to accelerate Metsera's drug portfolio and bring new therapies to market, the Wall Street Journal reports.

Novo Nordisk entered the bidding after Pfizer's initial $7.3 billion agreement with Metsera in September, leading to an unusual back-and-forth between the two pharmaceutical giants. A person familiar with the negotiations said Pfizer ultimately matched Novo Nordisk's final offer by increasing its bid by 5 cents per share. Metsera's board cited a recent warning from the Federal Trade Commission about regulatory risks associated with a Novo Nordisk deal as a factor in its decision to choose Pfizer, per the Journal. The board concluded that the Novo Nordisk offer carried higher legal and regulatory risks compared to Pfizer's proposal.

Metsera, based in New York, has no products on the market, per the AP. But the startup is developing oral and injectable treatments, including potential treatments that could tap lucrative fields for obesity and diabetes. The competition for Metsera highlights the growing importance of the global obesity drug market, currently valued at $72 billion and led by products from Novo Nordisk and Eli Lilly. Pfizer is seeking to strengthen its position in this sector after prior setbacks with weight-loss drug candidates. Metsera is developing both a monthly injection and oral weight-loss treatments. The FTC has already approved Pfizer's acquisition of Metsera.