Denmark’s Novo Nordisk made a rival offer for U.S. obesity biotech company Metsera, challenging a bid from Pfizer as pharmaceutical companies vie for dominance in the rapidly growing weight-loss drug market. Novo Nordisk proposed a bid of up to $8.5 billion, including an initial payment of $6 billion plus potential future milestone payments, surpassing Pfizer’s bid of $7.3 billion inclusive of milestones.
Pfizer criticized Novo’s bid, labeling it as “reckless” and expressing concerns about its impact on competition in the obesity drug sector. This move comes shortly after Novo Nordisk faced board changes due to perceived sluggishness in the obesity market compared to its main competitor, Eli Lilly.
The global obesity drug market is forecasted to hit $150 billion by the early 2030s, primarily driven by the growing use of GLP-1 therapies offered by companies like Novo Nordisk and Lilly. Novo Nordisk emphasized that acquiring Metsera would enable it to leverage the U.S. company’s complementary product portfolio and capabilities.
Both Novo Nordisk and Pfizer included contingent value rights in their bids, offering additional payments tied to the achievement of clinical and regulatory milestones. Analysts anticipate Metsera’s pipeline could generate over $5 billion in peak sales.
Metsera’s stock has surged nearly 100% since January, climbing from $26.50 per share at the beginning of the year to $52.21 as of Wednesday. The company brings a range of experimental obesity drugs to the table, with key products including MET-097i, a GLP-1 injectable, and MET-233i, which replicates the pancreatic hormone amylin.