Novo Nordisk Challenges Pfizer with $8.5B Bid for Obesity Biotech Metsera

In a dramatic turn of events, Novo Nordisk has launched an unsolicited $8.5 billion bid for obesity drug developer Metsera, potentially derailing Pfizer's previously announced acquisition. This move has ignited a high-stakes bidding war between two pharmaceutical giants, highlighting the intense competition in the rapidly growing obesity treatment market.

Novo's Surprise Offer Sparks Industry Shockwaves

Novo Nordisk's unexpected offer includes $6.5 billion in upfront cash, valuing Metsera's shares at $56.50 each, plus $2.5 billion in contingent value rights (CVRs). This proposal significantly outpaces Pfizer's earlier agreement of $4.9 billion upfront and $2.37 billion in CVRs, totaling approximately $7.27 billion.

Metsera's board has described Novo's offer as "superior," triggering a four-day window for Pfizer to counter. The biotech's shares surged more than 17% to $61.46 in pre-market trading following the announcement, reflecting investor enthusiasm for the potential bidding war.

Pfizer Fires Back, Alleging Antitrust Concerns

Pfizer swiftly responded to Novo's bid, branding it a "reckless and unprecedented proposal" and an "attempt by a company with a dominant market position to suppress competition in violation of law." The U.S. pharma giant argues that Novo's offer is "illusory" and structured to circumvent antitrust laws.

According to Pfizer, Metsera had previously rejected an offer from Novo due to "a variety of risks" in its deal structure. Pfizer maintains that its original agreement provides "real, certain and immediate value" for Metsera's stockholders and ensures the biotech's drug candidates can compete fairly in the U.S. market.

Strategic Implications for Obesity Drug Market

The battle 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 designed to overcome challenges faced by current small molecule treatments.

For Pfizer, losing Metsera would be a significant setback in its efforts to re-enter the obesity market following recent clinical setbacks. Novo Nordisk, already a leader in the field with its blockbuster drug Wegovy, sees the acquisition as an opportunity to "maximize the potential of Metsera's complementary portfolio and capabilities."

This development comes at a critical time for both companies. Novo recently announced plans to lay off 9,000 employees and restructure its R&D efforts in response to slowing sales growth for Wegovy. Meanwhile, Pfizer has been actively seeking to bolster its obesity pipeline after internal setbacks.

As the situation unfolds, industry observers are closely watching for Pfizer's next move and the potential ripple effects across the competitive landscape of obesity drug development.