Novo Nordisk (NVO) said it would pay up to $10 billion to acquire obesity-focused Metsera (MTSR), topping Pfizer‘s (PFE) recently hiked $8.1 billion proposal.
The escalating takeover fight sent Metsera stock flying 20.5% to 73.18 Meanwhile, Pfizer stock fell 1.5%, closing at 24.30, while Novo shares shed 1.8%, ending the regular session at 48.25.
Pfizer was Metsera’s initial acquirer, pledging in mid-September to pay up to $4.9 billion to buy the small biotech company, which is focusing on obesity treatments. Last week, Novo Nordisk made an unsolicited bid worth up to $6.5 billion.
Metsera says Novo Nordisk’s revised bid is superior to Pfizer’s. Pfizer now has two days to negotiate a higher price tag. The Novo deal values Metsera stock at $62.20 per share in cash and adds a contingent value right worth up to $24 per share based on specific milestones.
Why Metsera Matters To Novo, Pfizer
The gloves-off donnybrook could have key implications for either pharma giant. Pfizer has struggled to build a weight-loss franchise. A handful of its drugs have caused liver problems, sending the company back to the drawing board. Though Pfizer has several assets in development, they are all earlier stage.
Novo, on the other hand, is one of the two leaders of the weight-loss market. But it’s facing off with Eli Lilly (LLY), whose sales are growing rapidly. Revenue from Zepbound, Lilly’s weight-loss drug, catapulted 185% to $3.59 billion in the third quarter. The diabetes drug Mounjaro, which uses the same chemical backbone, brought in $6.52 billion. Mounjaro sales more than doubled year over year.
Meanwhile, Novo’s weight-loss drug, Wegovy, is expected to generate $3.33 billion in third-quarter sales. But that would grow a more modest 34%. Sales of Ozempic, the diabetes drug, are projected to increase just 10% to $4.73 billion.
This would be the second quarter running where Zepbound and Mounjaro have both topped Wegovy and Ozempic. Novo is due to report its third-quarter earnings on Wednesday.
Compounders are also continuing to challenge Novo Nordisk, knocking off Wegovy and Ozempic for a lower price tag.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
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