Signed, sealed and delivered, Metsera is finally Pfizer’s. Pfizer has completed its acquisition of the obesity biotech, capping a whirlwind two weeks in which rival pharma Novo Nordisk attempted to swoop in and snatch the startup from under Pfizer’s nose.
As previously announced, Pfizer agreed to pay $65.60 per share upfront for Metsera, while also committing to pay up to $20.65 per share via a contingent value right (CVR).
The CVR is "tied to the achievement of three specified clinical and regulatory milestones," Pfizer said in a Nov. 13 release, without providing specifics on the exact goals.
The total deal value of around $10 billion represents a significant uptick from the $7.3 billion value of the companies' original buyout deal, inked in September.
Metsera is now a wholly owned subsidiary of the American drugmaker. Over the next several years, Pfizer expects the acquisition to be a drag on earnings as it prepares to invest in developing Metsera’s drug candidates.
“This strategic milestone represents more than a transaction—it's a deliberate investment in the future of medicine," Pfizer CEO Albert Bourla, Ph.D., said in the release. "By acquiring Metsera, we are directing our resources toward one of the most impactful and high-growth therapeutic areas and positioning ourselves to define it.”
Metsera’s crown jewel is MET-097i, a weekly and monthly injectable GLP-1 asset that's "about to begin Phase 3 development," Pfizer said. Other pipeline prizes include MET-233i, a monthly amylin analog candidate in phase 1 development alone and in combination with MET-097i, and an oral GLP-1 candidate also in phase 1.
Metsera initially agreed to be acquired by Pfizer in late September, but just over a month later, Novo shocked the world by offering $6.5 billion upfront for the biotech, outbidding Pfizer’s $4.9 billion upfront offer.
Chaos ensued, with Pfizer racing to the courts in an effort to block Novo’s deal. Pfizer called Novo’s actions “an attempt by a company with a dominant market position to suppress competition in violation of the law by taking over an emerging American challenger.” The Danish pharma is already firmly established in the obesity space with blockbuster Wegovy (semaglutide) and a pipeline of other prospects.
Both Big Pharmas then boosted their bids and traded barbs, and a Delaware judge blocked Pfizer’s legal attempt to halt Novo’s deal. The U.S. Federal Trade Commission, however, warned Novo that the structure of its proposed buyout may not comply with U.S. merger law.
Metsera finally agreed to Pfizer’s increased offer late on Nov. 7. With the deal now done and dusted, the year's most captivating biopharma M&A saga has come to an end.