Novo Nordisk and Pfizer Escalate Bidding War for Metsera
Both Novo Nordisk and Pfizer have increased their offers to acquire obesity biotech Metsera, with Novo Nordisk now leading with an additional $1.9 billion.
Raised Offer by Novo Nordisk
Novo Nordisk recently raised its bid for Metsera to $10 billion, up from the initial unsolicited offer of $8.5 billion made just last week. This move intensified competition as Pfizer's earlier $7.3 billion offer had seemed likely to succeed.
Details of Novo Nordisk's Proposal
- Novo Nordisk proposes to buy all outstanding Metsera common stock at $62.20 per share in cash, valuing the equity at about $7.2 billion.
- The offer also includes contingent value rights (CVRs) worth up to $24.00 per share, with an approximate total value of $2.8 billion contingent on achieving certain clinical and regulatory milestones.
Metsera’s board of directors has described the $10 billion offer as “superior.”
Pfizer's Response
Pfizer disputes this characterization, arguing that Novo Nordisk’s offer “cannot qualify as superior” due to the high “regulatory risk,” which they believe makes the transaction unlikely to be completed.
Pfizer states that the regulatory challenges associated with Novo Nordisk’s bid cast doubt on its feasibility.
Summary
The bidding war between Novo Nordisk and Pfizer for Metsera highlights strategic moves and regulatory concerns shaping the future of obesity biotech acquisitions.
Author’s Summary
Nova Nordisk's $10 billion bid for Metsera intensifies a competitive acquisition fight with Pfizer, amid disputes over deal value and regulatory hurdles.