The merger and acquisition battle intensifies: Pfizer and Novo Nordisk's billion-dollar bid for the "new heavyweight" in weight loss drugs, Metsera
In the battle for Metsera, Pfizer has quickly followed suit, raising its acquisition offer to match that of its competitor Novo Nordisk AS—totaling up to $10 billion. This move has escalated the fierce bidding war to a heated stage. The two giants are competing for Metsera's potential pipeline in the weight loss drug sector, including a monthly injection aimed at seizing an early advantage in the weight loss drug market, which is expected to reach a scale of $100 billion
On Monday, the U.S. market announced four large transactions totaling over $80 billion in a single day, pushing this year's merger and acquisition frenzy to new heights. Against this backdrop, pharmaceutical giants Pfizer and Novo Nordisk are also entering a heated bidding war for the "new heavyweight" in weight loss drugs, Metsera.
According to the Financial Times, citing two informed sources, Pfizer submitted a new bid before Wednesday's deadline, raising its offer to match that of Novo Nordisk: $86.20 per share, with a total price of up to $10 billion.
This move allows Pfizer to remain in the game. Previously, Metsera's board had determined that its Danish competitor Novo Nordisk's proposal was superior. Pfizer and Novo Nordisk are fiercely competing to acquire this biotech company with a promising pipeline.
This latest development quickly ignited market sentiment. Following the news of Pfizer's follow-up bid, Metsera's stock price rose by as much as 8% in after-hours trading, exceeding $77 per share.
A Key Battle in the Trillion-Dollar Arena
At the heart of this acquisition battle is Metsera's promising pipeline of weight loss drug products, which includes a monthly injectable that could change the market rules.
In a market currently dominated by Novo Nordisk's Ozempic and Eli Lilly, any company that can offer a more convenient and effective treatment solution could gain a significant competitive advantage.
For Novo Nordisk, acquiring Metsera is a defensive move to solidify its market leadership. For Pfizer, this is a crucial offensive aimed at quickly entering this golden track, which is expected to exceed $100 billion in market size by the end of this century.
Winning Metsera means gaining a valuable strategic chip in future market competition.
A Bumpy Bidding Process
This bidding war has been filled with dramatic twists. Initially, Pfizer reached a preliminary agreement with Metsera in September. However, last week, Novo Nordisk suddenly launched a public non-binding offer, intending to "break into" the deal, triggering an intense bidding war.
Reports indicate that both sides raised their bids on Tuesday. Novo Nordisk's proposal included an upfront payment of $62.20 per share and a subsequent milestone payment of $24, totaling $86.20 per share, which was deemed a "superior offer" by Metsera's board. At that time, Pfizer's bid was $70 per share, valuing Metsera at approximately $8.1 billion.
Just one day later, Pfizer quickly raised its bid to match Novo Nordisk's level. According to the merger agreement terms, if Novo Nordisk raises its bid again, Pfizer will have two days to decide whether to match it. The shareholder vote for the deal is scheduled for November 13
Dual Challenges of Courts and Regulation
In addition to commercial bids, the legal and regulatory battles are equally fierce. Pfizer has filed a lawsuit accusing Novo Nordisk of designing a "two-step" payment structure to evade antitrust scrutiny, which it claims is "unprecedented and illegal." Despite setbacks at Wednesday's hearing, Pfizer stated in a release that it will "continue to actively pursue its claims through ongoing litigation and the parallel antitrust lawsuit pending in the federal court of Delaware."
The involvement of regulatory agencies has further complicated the situation. The FTC has sent a letter to Novo Nordisk and Metsera, warning that their transaction structure "may violate" competition laws. Novo Nordisk responded that it is engaging in "constructive dialogue" with the FTC and believes its proposal complies with antitrust rules. Pfizer welcomed the regulatory intervention, stating that it "also expressed serious concerns."
A Reflection of the Global M&A Boom
The competition between Pfizer and Novo Nordisk for Metsera is a reflection of the strong rebound in the current global merger and acquisition market.
Wall Street Journal reported that data shows the total value of global M&A transactions has reached $3.8 trillion this year, a year-on-year increase of approximately 38%.
Companies are actively leveraging the window of opportunity to reshape industry landscapes through transformative strategic acquisitions. From artificial intelligence infrastructure to biotechnology, large transactions are frequent, reflecting a strong pursuit of high-growth potential sectors by capital
