Pfizer has won a competitive bidding war over obesity treatments by finalising the US$10 billion (A$15.4 billion) acquisition of Metsera.
The biopharmaceutical giant has entered into an amended merger agreement under which it pay up $86.25 per share for the biotechnology company, including $65.60 in cash and contingent value right to up to $20.65 per share in future cash payments.
The deal marks the end of a fierce fight with Novo Nordisk to secure Metsera’s promising early-stage obesity treatments with the Danish weight-loss drug market leader, which makes Wegovy and Ozempic, pulling out of the context on Saturday.
“The Metsera Board of Directors has determined that the revised terms represent the best transaction for shareholders, both from the perspective of value and certainty of closing,” Metsera said in a news release.
Metsera also disclosed the U.S. Federal Trade commission (FTC) had contacted the company regarding potential antitrust concerns with the Novo Nordisk offer.
“In light of recent developments, including the FTC’s communication, the Board concluded that Pfizer’s proposal represents the most prudent and certain path forward for our investors,” the target company said.
Metsera said the merger with Pfizer would deliver immediate and substantial value to stockholders and it was expected to close on 13 November.
Novo Nordisk said it believed its offer complied with U.S. antitrust laws but it would not increase its bid.
“This was a Game of Thrones-level of play,” Metsera shareholder and RA Capital Managing Partner Peter Kolchinsky was quoted in a Reuters story as saying.
“The intensity of the bidding shows how crucial new obesity drug platforms have become to big pharma’s long-term growth.”
Metsera (NASDAQ: MTSR) shares closed $1.63 (2.00%) higher at $83.18 on Friday (Saturday AEDT), capitalising the company at $8.75 billion.
Pfizer (NYSE: PFE) ended barely changed, rising one cent to $24.43 ($138.9 billion), while Novo Nordisk (CPH: NOVO-B) ended down 15.75 Danish kroner (DKK) (5.13%) at 291.20 DKK (987.21 billion DKK or US$148 billion).