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Weight problems drug developer Metsera mentioned on Friday that it had accepted Pfizer‘s $10 billion acquisition provide, in what may spell the top of a bidding battle between the New York-based pharma large and rival Novo Nordisk that erupted during the last week.
Pfizer had appeared to have locked up this acquisition in September earlier than Novo jumped in final week, sparking a strategic struggle for a coveted asset within the rising weight reduction market. Pfizer is attempting to realize a toehold in that market to beat previous in-house stumbles in creating weight-loss medication.
Pfizer mentioned it might pay $86.25 per share in money, a premium of three.69% to Metsera’s Friday shut. The provide contains $65.60 per share in money and a contingent worth proper (CVR) entitling holders to further funds of as much as $20.65 per share in money.
Novo desires to recuperate its once-commanding place in weight problems medication it misplaced to Eli Lilly It’s unclear if they are going to make one other provide, or if Metsera would entertain one other bid. The corporate, in its Friday assertion, mentioned Novo’s proposal presents “unacceptably excessive authorized and regulatory dangers” in comparison with the proposed merger with Pfizer.
Metsera’s board advisable its shareholders approve the amended Pfizer provide. In an announcement, Pfizer mentioned it was happy to have reached an settlement with Metsera.
The biotech firm at present loses cash and analysts count on additional losses whereas its medication are nonetheless in improvement.
The bidding battle between Pfizer and Novo took the value from Pfizer’s $7.3 billion provide in September to the present worth. It had escalated right into a authorized and strategic standoff, with Novo searching for to wrest Metsera from Pfizer’s grip by a sophisticated deal construction that has drawn scrutiny from regulators.
Metsera’s experimental weight problems medication MET-097i – a GLP-1 injectable – and MET-233i, which mimics the pancreatic hormone amylin, are projected to achieve $5 billion in mixed peak gross sales, in keeping with Leerink Companions analyst David Risinger.
