Metsera's Take on Novo Nordisk's Bid: A Superior Offer?
In a recent development, Metsera has declared that Novo Nordisk's new bid for the obesity biotech startup is 'superior' to Pfizer's revised proposal, intensifying the competition between these pharmaceutical giants. This comes as a surprise, given the ongoing legal battles and the potential impact on the market.
Novo Nordisk's New Offer: A Higher Valuation
Novo Nordisk's latest offer values Metsera at an impressive $86.20 per share, totaling around $10 billion. This represents a substantial 159% premium to Metsera's closing price on September 19, the day before Pfizer's initial acquisition announcement. In contrast, Pfizer's revised proposal values Metsera at up to $70 per share, totaling approximately $8.1 billion.
The Negotiation Window
According to the original agreement, Pfizer has two business days to negotiate adjustments to its proposal. If Metsera's board determines that Novo Nordisk's offer remains more attractive after this window, Metsera can terminate the existing merger agreement, as stated in the release.
Legal Battles and Market Dynamics
This heated tussle between Pfizer and Novo Nordisk comes on the heels of Pfizer's second lawsuit against Novo Nordisk and Metsera, alleging anticompetitive behavior. The clash highlights the evolving landscape of blockbuster weight loss and diabetes drugs, where Novo Nordisk, once a market leader, is now facing challenges from rival Eli Lilly and other competitors.
Pfizer's Interest in Metsera's Pipeline
Pfizer's interest in Metsera's pipeline is significant, especially after the company's struggles to bring its own obesity drugs to market. With Novo Nordisk losing market share and investor confidence, Pfizer sees an opportunity to enter the space and potentially gain a competitive edge.
The Previous Acquisition Offer
Initially, Pfizer proposed acquiring Metsera for $4.9 billion, with potential future payments pushing the total to $7.3 billion. However, Novo Nordisk's surprise takeover bid, valuing the biotech at around $6 billion, triggered a renegotiation deadline for Pfizer, leading to the current intense competition.
