Novo Nordisk Bids for Metsera with $6B Offer, Outbidding Pfizer's $4.9B Proposal

Cailian Press, October 30 (Editor Niuzhan Lin)Danish pharmaceutical giant Novo Nordisk said on Thursday that it had made a takeover offer for U.S. biopharmaceutical company Metsera, following Pfizer's bid last week.

U.S. Stock Premarket: Metsera Shares Soar Nearly 20%. As of Wednesday's close, Metsera's stock price has surged 190% year-to-date to $52.21, with a market value of approximately $5.5 billion.

Novo Nordisk claims to have offered an all-cash bid of $56.50 per share, corresponding to an enterprise value of approximately $6 billion, while Pfizer’s previous offer was $47.50 per share in cash, corresponding to an enterprise value of approximately $4.9 billion.

In addition, both Novo Nordisk and Metsera have provided contingent value rights (CVR). If the latter achieves predetermined goals in clinical and regulatory approval milestones, the total acquisition price could increase by several billion dollars.

According to informed sources, Novo Nordisk has made a higher acquisition offer to weight-loss drug startup Metsera in an attempt to seize the deal Pfizer had already reached, further solidifying its leading position in the weight-loss drug market.

Reportedly, Novo Nordisk had submitted a preliminary acquisition proposal before Metsera signed with Pfizer. Now, the company has restarted its offer with improvements in both price and deal structure. Currently, Novo Nordisk and Metsera have entered into advanced negotiations, with a final agreement expected as early as Thursday.

Pfizer announced in September this year that it had agreed to acquire Metsera for $47.50 per share in cash, corresponding to an enterprise value of approximately $4.9 billion. If specific R&D goals are achieved, Pfizer will additionally pay $22.50 per share, bringing the total transaction value to $7.3 billion.

Weight Loss Drug Market Competition

The global weight-loss drug market is expected to reach a scale of 100 billion US dollars by 2030, a prospect that has prompted large pharmaceutical companies to acquire small biotech companies with potential molecules.

Metsera has multiple next-generation drug candidates in its pipeline, with the GLP-1 RA drug MET-097i being the most advanced, already in Phase IIb. In a 12-week Phase II trial, participants experienced an 11.3% reduction in body weight with limited side effects.

Metsera’s pipeline also includes a long-acting amylin analog drug, MET-233i, with more clinical data expected to be released by the end of the year. Amylin drugs are considered a milder alternative to GLP-1 drugs (such as Wegovy and Zepbound) in terms of side effects.

As the pioneer in the GLP-1 drug field, Novo Nordisk is undergoing an internal transformation in an attempt to reclaim market dominance. The craze for weight-loss drugs once caused the company's market value to soar, making it the highest-valued company in Europe, but the subsequent rise of competitors like Eli Lilly put pressure on its stock price.

In early October this year, more than half of the board members of Novo Nordisk (including Chairman Helge Lund) resigned due to disagreements over the pace of change within the company. The former CEO of the company and current largest shareholder, Lars Rebien Sørensen, has returned to serve as chairman.

Moreover, Novo Nordisk is also facing political pressure from U.S. President Trump to lower drug prices. Trump recently announced plans to reduce the price of its star diabetes drug Ozempic to $150 per month.

If Novo Nordisk successfully acquires Metsera, it will deal a significant blow to Pfizer. Since the pandemic, Pfizer has been attempting to rebuild its growth engine, but with the sharp decline in demand for the COVID-19 vaccine and several of its core drugs nearing patent expiration.