Quick overview

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Pfizer agreed to buy Metsera after a fierce bidding war with Novo Nordisk A/S over the weight-loss startup, in a $10 billion deal.

Metsera announced late on Friday that Pfizer will pay up to $86.25 per share, which includes an initial cash payment of $65.60 per share and potential additional payments of up to $20.65 per share for reaching specific milestones.

Pfizer appears ready to conclude an intense bidding war between two of the world’s largest pharmaceutical companies, both of which see Metsera as a solution to serious issues affecting their businesses.

 

Novo has been trying to compete with rival Eli Lilly and Co. since making an unsolicited offer for Metsera in October, and boost its stagnant stock price, while Pfizer has been searching for a viable strategy to enter the highly competitive obesity market after multiple failed attempts with weight-loss medications.

The U.S. government ultimately had the greatest influence on which company would win. Due to U.S. antitrust concerns, a Novo acquisition would have posed “unacceptably high legal and regulatory risks to Metsera and its shareholders,” according to a statement from Metsera on Friday.

The statement also referenced a call from the U.S. Federal Trade Commission about potential risks involved in proceeding with the proposed Novo deal structure. Pfizer, on the other hand, had already received FTC approval for its bid. According to the statement, Metsera’s board decided that the new Pfizer offer was “the best transaction for shareholders, both in terms of value and certainty of closing.”

Pfizer expressed satisfaction that “we and Metsera have agreed to these revised terms, which will provide immediate and certain value to Metsera’s shareholders,” and indicated that it expects to close the deal soon..