Pfizer (PFE) has filed a lawsuit in the Delaware Court of Chancery against Metsera (MTSR), a U.S.-based obesity biotech firm, and Novo Nordisk (NVO), alleging breach of contract and “tortious interference” with its planned acquisition of Metsera.
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The move comes after Metsera attempted to terminate its merger agreement with Pfizer. In response, Pfizer is seeking a temporary restraining order to prevent the deal from being canceled, giving PFE time to present its case.
The company is also pursuing injunctive relief and financial compensation to address the harm caused by Metsera and Novo Nordisk and to ensure the original merger deal is enforced.
Key Allegations
Pfizer claims Metsera and its board violated the terms of their previously agreed deal. The lawsuit also challenges Novo Nordisk’s competing bid, arguing that it does not meet the criteria for a legally superior offer under the merger agreement.
According to Pfizer, Novo Nordisk’s proposal, reportedly worth up to $8.5 billion, including milestone payments, is said to carry major regulatory risks and may not be completed as proposed.
In contrast, Pfizer’s $7.3 billion offer has already received early termination approval from the U.S. Federal Trade Commission, clearing a key antitrust hurdle.
What’s at Stake
Metsera, due to its focus on obesity treatments, has become the most sought-after company in the fast-growing weight-loss drug market.
Novo Nordisk, known for its drugs Wegovy and Ozempic, is looking to expand its portfolio, while Pfizer is aiming to re-enter the space after shelving its own obesity drug earlier this year.
What Is the Price Target for PFE Stock?
Turning to Wall Street, analysts have a Hold consensus rating on Pfizer stock based on four Buys, 12 Holds, and one Sell assigned in the past three months. At $28.60, the average PFE stock price target implies a 16.02% upside potential.
