Pfizer Inc. has agreed to acquire weight-loss drug startup Metsera Inc. for $10 billion. The deal is an outcome of a competitive tender process with its competitor, Novo Nordisk A/S. Metsera announced on Friday that Pfizer offered as much as $86.25 per share. The initial payment includes $65.60 in cash, with additional payments of up to $20.65 per share tied to milestone achievements.
Metsera's board agreed that the Pfizer offer aligned perfectly with its shareholders. The company said the transaction is in line with its long-term growth strategy. According to Bloomberg, the announcement places Pfizer in a position where it can close the transaction over Novo Nordisk, even if the transaction has not yet been closed.
Pfizer's offer is a 5-cent per share increase from the previous offer. The increase came after Pfizer was reported to have adjusted its bid to keep pace in the auction process. Earlier on Friday, Bloomberg reported that the company sought to boost its stance against Novo Nordisk, which has also shown interest in acquiring Metsera.
The transaction structure consists of an upfront cash payment and earn-out payments. These payments are based on Metsera achieving pre-established development and regulatory milestones. This is a strategy that is designed to create alignment of interests for both companies and minimise the upfront cash payments required by Pfizer. Analysts report that milestone-based payments are a trend in pharmaceutical acquisitions as a mechanism for risk management and performance-based payments.
The acquisition strengthens Pfizer's presence in the weight loss drug field, a fast-growing market. Metsera's portfolio includes treatments with potential in clinical trials that add value to Pfizer's product portfolio. The deal also positions Pfizer to compete with other major pharmaceutical companies in other high-demand therapeutic areas.
Market analysts suggest that this acquisition may have an impact on the consolidation trends in the sector that continue to emerge. By acquiring Metsera, Pfizer is expanding its pipeline and placing itself in a stronger position to compete with weight loss giants, such as Novo Nordisk. The adoption of Metsera's technology can be used to speed up the development of Pfizer's work.
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