Pfizer is set to acquire Metsera, a US biotechnology startup specializing in obesity treatments, after its improved offer won over the company’s board. The deal, worth around $10 billion, would see Pfizer pay up to $86.25 per share. Metsera’s board has unanimously recommended that shareholders approve the merger, which is expected to close promptly after a shareholder meeting on November 13.
The acquisition has been the subject of a back-and-forth bidding war between Pfizer and Danish pharmaceutical company Novo Nordisk, which manufactures the weight-loss drug Wegovy and the antidiabetic medication Ozempic. However, Novo Nordisk has announced that it does not intend to make an increased offer to acquire Metsera, citing its intention to continue assessing opportunities for business development and acquisitions that further its strategic objectives.
The bidding war began after Pfizer and Metsera struck an initial deal in September, which triggered a counteroffer from Novo Nordisk. The US Federal Trade Commission had raised concerns about potential antitrust implications of a Novo Nordisk acquisition, which Metsera’s board deemed presented unacceptably high legal and regulatory risks compared to the proposed merger with Pfizer. Novo Nordisk, however, believed that its prospective deal was compliant with antitrust laws.
The acquisition highlights the growing importance of the obesity treatment market, with the World Health Organization estimating that over one billion people worldwide live with obesity, and over 800 million live with diabetes as of 2022. Pfizer’s acquisition of Metsera is expected to strengthen its position in this market, with the company poised to expand its portfolio of obesity treatments.
The deal is also significant in terms of the pharmaceutical industry’s response to the growing global health crisis posed by obesity and diabetes. As the prevalence of these conditions continues to rise, pharmaceutical companies are increasingly investing in research and development of new treatments. Pfizer’s acquisition of Metsera is a notable example of this trend, and is likely to have significant implications for the industry in the years to come.
With the acquisition expected to close in the coming weeks, attention will turn to the potential impact on the pharmaceutical industry and the treatment of obesity and diabetes. As the global health community continues to grapple with these pressing issues, the role of pharmaceutical companies in developing innovative treatments will remain a key area of focus.
