Bidding war breaks out as Novo raises Metsera bid to $10bn
Obesity drug developer Metsera has now received updated takeover offers from both Pfizer and Novo Nordisk, and has come down in favour of a sweetened $10 billion bid from the latter.
Novo Nordisk's bid now stands at up to $86.20 per share, while Pfizer – which has filed a pair of lawsuits seeking to force its previously agreed deal over the line – said this morning that it had raised its offer to $70.00 per share, equivalent to around $8.1 billion.
In a statement, Metsera said its board of directors has determined, after "consultation with its outside counsel and financial advisors," that it would like to move ahead with Novo Nordisk as the "superior company proposal."
That means it has now notified Pfizer of its intention to accept Novo Nordisk's deal, triggering a two-day period in which Pfizer can come back with a counteroffer. And, according to Metsera, if Pfizer fails to do so, it means that it will be entitled to duck out of their merger agreement.
In its third-quarter results update, Pfizer reiterated its position that it believes a merger with Novo Nordisk would break antitrust laws, seeking a temporary injunction on such a deal on the grounds of breach of contract, breach of fiduciary duty, and tortious interference.
The prize for the two companies is Metsera's two weight-loss candidates, GLP-1 agonist MET-097i and amylin analogue MET-233i, which are ready for phase 3 and could offer less frequent, once-monthly dosing than current once-weekly drugs like Novo Nordisk's Wegovy (semaglutide) and Eli Lilly's Zepbound (tirzepatide).
Pfizer said getting hold of those assets would allow it to "meaningfully compete" in obesity, having run into difficulties developing its own weight-loss drugs. Novo Nordisk, meanwhile, said that taking control of Metsera offers the best chance of "maximising the potential" of its "complementary portfolio and capabilities."
Both offers include an upfront component payable on closing – $62.20 per share for Novo Nordisk versus $60.00 for Pfizer – with additional contingent value rights (CVRs) of $24.00 per share and $10.00, respectively, tied to the start of a phase 3 programme for a combination weight-loss regimen based on MET-097i and MET-233i and FDA approvals for MET-097i monotherapy and the two-drug regimen.
Shares in Metsera shot up nearly 20% to more than $72 after news of the renewed bidding war emerged, raising its market capitalisation to more $7.63 billion. It was trading at a little over $33 before Pfizer broke cover with its bid in September.
