Quick overview

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Pfizer announced that it had sued Metsera and Novo Nordisk, alleging that Metsera violated the terms of the merger agreement by claiming that the pharmaceutical company’s $8.5 billion offer for the US obesity drug developer was superior.

Pfizer requested a temporary restraining order from the Delaware court where the lawsuit was filed. The court’s electronic filing system did not immediately display the lawsuit. According to Metsera, Pfizer has until Tuesday to improve its offer. Pfizer’s lawsuit states that Novo’s offer carries significant regulatory risks and is an illegal attempt by a market leader to avoid antitrust scrutiny.

The lawsuit was filed after the US Federal Trade Commission approved Pfizer’s early antitrust clearance for its proposed $7.3 billion acquisition of Metsera, allowing the Hart-Scott-Rodino Act’s waiting period to end early more than a week before the November 7 deadline. Pfizer aims to enter the rapidly growing obesity market, which is projected to reach $150 billion by the early 2030s, despite not currently offering a weight-loss medication.

The company is trying to compensate for declining COVID-related revenue and upcoming patent expirations after facing challenges in developing its own treatments.

Novo Nordisk, the maker of Wegovy and Ozempic, is trying to catch up to Eli Lilly, whose medications Mounjaro and Zepbound have shown better clinical outcomes. Analysts estimate that the experimental GLP-1 and amylin-based treatments in Metsera’s pipeline could reach $5 billion in peak sales..