Pfizer (PFE) has reached a deal to buy Metsera (MTSR), a weight-loss drug startup, in a transaction that could total more than $10 billion. The agreement follows a back-and-forth negotiation with Novo Nordisk (NVO), which attempted to counter Pfizer’s earlier offer. However, Metsera’s board chose Pfizer’s final bid, which includes both cash and a performance-based payout.
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The agreement will give Pfizer access to new obesity treatments after the company’s previous weight-loss efforts failed to progress beyond trials. Metsera is working on a once-a-month injection, along with a pill-based treatment. These additions could help Pfizer compete in a growing global market for obesity drugs.
Meanwhile, PFE shares rose ever-so-slightly on Friday, closing at $24.43.
Deal Terms and Competitive Bidding
Under the terms, Pfizer will pay $65.60 per share in cash. There is also a contingent value right, worth up to $20.65 per share, based on future performance. The total value, if targets are met, could reach $86.25 per share. In September, Pfizer had agreed to buy Metsera for up to $7.3 billion, but Novo Nordisk later came in with a counteroffer, which pushed the price higher.
Novo Nordisk had matched Pfizer’s most recent offer. Still, Metsera cited legal and regulatory risks tied to Novo Nordisk as a key reason for choosing Pfizer. According to Metsera, the Federal Trade Commission made a call to flag concerns about antitrust issues in a possible Novo deal. The board said the risks were too high when compared to Pfizer’s offer.
Pfizer said it expects to close the transaction after Metsera shareholders vote on the deal on Thursday. The company also noted it already has regulatory clearance from the Federal Trade Commission.
Why It Matters for the Obesity Drug Market
The fight for Metsera shows how important the weight-loss drug market has become. Novo Nordisk and Eli Lilly (LLY) have led the field with Wegovy and Zepbound. That market is now worth over $70 billion and growing fast. It has attracted interest from across the pharmaceutical industry, as firms seek ways to gain a foothold in a high-demand space.
Pfizer, which missed out on its own obesity pill program, is now re-entering the market with Metsera’s pipeline. The company said it plans to use its global scale to support development and reach more patients.
Novo Nordisk, which had been working to regain momentum after falling behind Eli Lilly, said it will not raise its offer again. The company said it remains focused on shareholder value and will continue to seek new deals. The Metsera vote is expected soon. If approved, the deal would give Pfizer a stronger hand in one of the fastest-growing drug categories today.
Is Pfizer a Buy, Sell, or Hold?
Pfizer continues to split views on the Street with a Hold consensus. Out of 14 ratings being issued, only three analysts rate the stock a Buy, while 10 analysts rate it a Hold. The average PFE stock price target is $29.08, implying a 19.03% upside from the current price.
