U.S. pharmaceutical giant Pfizer signed a deal to purchase development-stage obesity drugmaker Metsera Inc., winning a bidding war against Novo Nordisk, the Danish drugmaker behind weight-loss treatments Ozempic and Wegovy.
Metsera, based in New York, has no products on the market, but it is developing oral and injectable treatments. That includes some potential treatments that could target lucrative fields for obesity and diabetes.
The deal comes as Pfizer is attempting to develop its own stake in that market, several months after ending development of a potential pill treatment for obesity.
In a statement issued Friday, Metsera said Pfizer will acquire the company for up to $86.25 per share, consisting of $65.60 per share in cash and a contingent value right entitling holders to additional payments of up to $20.65 per share in cash.
Metsera cited U.S. antitrust risks in Novo’s bid, saying in its statement that the board has determined Pfizer’s revised terms represent “the best transaction for shareholders, both from the perspective of value and certainty of closing.”
The deal comes three days after Novo Nordisk raised the stakes in its push to outbid Pfizer, saying Tuesday it would offer to pay as much as $10 billion for Metsera. That was higher than its previous bid of up to $9 billion which sparked a lawsuit from Pfizer.
Pfizer had also altered the offer it made in September of nearly $4.9 billion to provide more cash up front, Metsera had said.
New York-based Pfizer said in an email that it was happy with the terms of the deal, and expects to close the transaction shortly following the Metsera shareholder meeting on Nov. 13.
Novo Nordisk said Saturday it would not increase its offer and would leave the race to acquire Metsera.
Novo’s proposed deal had involved paying $62.20 in cash for each Metsera share, up from its previous bid of $56.50. The Danish drugmaker planned to tack on a contingent value right payment of $24, another improvement from its previous bid, if certain development and regulatory milestones were met.