Posted on about 16 hours ago by Laurentina Kennedy
Pfizer, Novo again raise Metsera bids in intensifying obesity drug battle
Pfizer shares rose 1%, while Novo Nordisk ended up 2% in Europe.
"Some assets are truly worth fighting over," said Peter Kolchinsky, managing partner at RA Capital, a major investor in early-stage biotech firms, and a top-20 Metsera shareholder.
Some analysts estimate the obesity drug market will hit $150 billion early next decade.
Metsera, Pfizer and Novo did not comment on the report of the renewed bids.
The Financial Times first reported that Novo had once again raised its bid after Pfizer matched Novo's offer.
The latest round of bidding follows a Delaware court's decision on Wednesday to not block Metsera from walking away from its agreement with Pfizer, and comes amid scrutiny from the US Federal Trade Commission over Novo’s two-step acquisition structure.
The oneupmanship has been a boon for Metsera shareholders. Its shares gained more than 14% yesterday and have risen more than 55% since Novo made its public unsolicited bid last week.
Pfizer's seventh bid, according to public documents, matched Novo’s $10 billion offer just ahead of a deadline that would have left it out of the race.
Novo is trying to recover a once-commanding position in the increasingly competitive weight loss market it has lost to Eli Lilly, while Pfizer aims to overcome past stumbles and enter the highly lucrative field.
The bidding war centers on Metsera's pipeline of experimental obesity treatments that analysts estimated could be worth several billion dollars annually if they are approved. Its lead drug candidate is a once-monthly injection.
There have been at least 16 separate offers exchanged between the two companies, according to public records.
The bidding war started privately in January and became public last week, when Novo made an unsolicited offer for Metsera in a challenge to Pfizer’s $7.3 billion agreement announced in September.
The acquisition fight has escalated into a legal and strategic standoff with Novo seeking to wrest Metsera's obesity drug assets from Pfizer's grip through a complicated deal structure that has drawn scrutiny from regulators.
"As of today, our bid is higher, and our message to Pfizer is that if they would like to buy the company, then put your hand in the pocket and bid higher," said Doustdar.
The exact dollar amount is currently unclear, though Novo CEO Mike Doustdar said at a White House event its bid is currently higher.
Novo raised its offer for the US biotech yesterday just hours after New York-based Pfizer matched the Danish drugmaker's previous $10 billion proposal on Wednesday night, according to two people familiar with the process.
The Pfizer and Novo Nordisk battle for obesity drug developer Metsera has intensified after a fresh round of sweetened bids.