Novo Nordisk Competes with Pfizer for U.S. Biotech Metsera

Copenhagen, Denmark — Danish drugmaker Novo Nordisk has launched a rival bid for U.S. obesity biotech firm Metsera on Thursday, seeking to outbid Pfizer in the competitive weight-loss drug market. Novo Nordisk’s offer is valued at up to $8.5 billion, which includes $6 billion upfront as well as potential future milestone payments.

Pfizer’s initial bid was reported to be worth $7.3 billion, also encompassing milestone payments. In a public statement, Pfizer criticized Novo’s proposal as ‘reckless,’ arguing it could negatively affect competition in the obesity drug industry.

This aggressive play by Novo Nordisk comes just one week after a significant management shakeup where most of the company’s board was replaced. Concerns were raised about the company’s slow pace in the lucrative obesity market, where it is in tight competition with main rival Eli Lilly.

The global obesity drug market is booming and is expected to reach $150 billion by the early 2030s, largely driven by the growing popularity of GLP-1 therapies developed by companies like Novo and Lilly. Novo believes the acquisition of Metsera would allow it to enhance the potential of its ‘complementary portfolio and capabilities.’

Both companies have incorporated contingent value rights into their bids, which would provide additional payments based on the success of clinical and regulatory milestones. Leerink Partners analyst David Risinger has estimated that Metsera’s pipeline could generate more than $5 billion in combined peak sales.

Since the beginning of this year, shares of Metsera have surged nearly 100%, climbing from $26.50 per share on January 31 to $52.21 as of Wednesday. Metsera is noted for its portfolio of experimental obesity drugs, including MET-097i, a GLP-1 injectable, and MET-233i, which mimics the pancreatic hormone amylin.