New York: In a significant escalation of the ongoing takeover battle, Pfizer Inc. announced that it has removed certain conditions attached to its bid for U.S. biotech firm Metsera Inc., a move seen as an effort to strengthen its position against rival bidder Novo Nordisk A/S. The decision follows a Delaware court’s refusal to block Metsera from engaging with Novo, signaling an open contest between two pharmaceutical giants competing for dominance in the booming obesity drug market.
The fight for Metsera has rapidly become one of the most closely watched pharmaceutical takeover contests of the year. The biotech firm, known for its pioneering work in next-generation obesity and metabolic disorder therapies, is being courted by both Pfizer and Novo Nordisk two companies seeking to secure a foothold in what analysts predict could become a $150 billion global obesity treatment market by the early 2030s.
Novo Nordisk, which currently leads the field with its blockbuster drugs Wegovy and Ozempic, launched an unsolicited $10 billion offer for Metsera, disrupting Pfizer’s earlier agreement with the company. Novo’s bid reportedly includes an upfront payment of about $62.20 per share, along with an additional $24 per share in milestone-based payments.
Pfizer, determined not to lose the deal, swiftly responded by revising its offer and removing several restrictive conditions that could have complicated the acquisition. While the company did not disclose which clauses were dropped, sources familiar with the matter indicated that Pfizer has eased certain regulatory and performance-based contingencies to make the bid more attractive.
The company is also considering an increase in its offer, potentially exceeding $70 per share, signaling its willingness to pay a premium for Metsera’s cutting-edge drug pipeline. Pfizer’s executives view Metsera as a critical asset to diversify beyond its traditional vaccine and antiviral portfolios, especially as COVID-related revenues continue to decline.
However, Pfizer’s attempt to prevent Metsera from terminating its original deal suffered a setback when a Delaware judge declined to issue an injunction, ruling that there was “no current need” for court interference. The ruling effectively cleared the way for Metsera to continue discussions with Novo Nordisk, heightening the pressure on Pfizer to act quickly.
Both bids face potential antitrust scrutiny from U.S. regulators. Pfizer has raised concerns that Novo Nordisk’s offer structure particularly the heavy upfront payment and delayed transfer of voting control could violate competition laws and undermine innovation.
Meanwhile, Novo Nordisk has rejected those claims, asserting that its proposal fully complies with U.S. antitrust standards. Industry observers note that with both companies holding dominant positions in metabolic and diabetes-related therapeutics, regulators will carefully assess whether the merger could stifle competition in the obesity drug segment.
Founded as a research-driven biotech company focused on metabolic diseases, Metsera has drawn industry attention for its novel GLP-1 analogues and dual-action obesity treatments currently in advanced stages of development. These therapies could compete directly with Novo’s established products and help Pfizer re-enter a market it exited in 2023 after discontinuing its earlier obesity drug program.
For investors, the Metsera deal has already sparked volatility. Shares of Metsera have surged as the bidding war intensified, reflecting confidence that the company’s innovative portfolio could command a higher acquisition premium. Analysts suggest that whichever company secures Metsera could redefine its long-term growth trajectory.
The deadline for Metsera’s board to decide remains tight, and both bidders are expected to refine their offers in the coming days. Pfizer’s latest move indicates that it is not ready to walk away and may further sweeten its proposal to outmaneuver Novo Nordisk.
However, the outcome will depend not only on price but also on the regulatory feasibility and strategic fit of the winning offer. The Federal Trade Commission (FTC) and international watchdogs are likely to closely monitor whichever deal proceeds, given the growing concentration in the obesity drug market.
As the battle for Metsera continues, the world’s two pharmaceutical titans are not just vying for a single company they are competing for control over the next great frontier in global healthcare: the fight against obesity.
Source: Based on reporting from Reuters