Pfizer set to acquire anti-obesity drugmaker Metsera for $7.3B
What's the story
Pfizer, one of the world's largest pharmaceutical companies, is on the verge of acquiring Metsera, a developer of anti-obesity drugs. The deal could be worth an estimated $7.3 billion, according to Financial Times. Pfizer plans to pay $47.50 per share in cash for the New York City-based company and an additional $22.50 per share if certain performance milestones are met.
Deal details
Significant premium in Pfizer's Metsera bid
The $47.50 per share bid represents a 42.5% premium over Metsera's Friday closing price of $33.32, which pegged its market value at about $3.5 billion, according to LSEG data. The move comes just months after Metsera's successful NASDAQ debut and highlights the growing investor interest in companies developing next-generation weight-loss therapies.
Market strategy
Pfizer's acquisition strategy amid weight-loss drug challenges
The acquisition is part of Pfizer's strategy to establish a strong presence in the lucrative anti-obesity drug market, especially after its own development efforts faced challenges. The company had been working on an experimental weight-loss pill, danuglipron, but had to abandon it in April due to poor tolerability observed during a mid-stage trial.
Drug development
Metsera's promising pipeline in obesity treatment
Founded in 2022 by venture capital firm ARCH Venture and investment company Population Health Partners, Metsera is working on injectable and oral drugs for obesity. The company's lead candidate, MET-097i, an injectable drug, showed an average weight loss of 11.3% in patients during a mid-stage trial earlier this year. This innovative approach makes Metsera an emerging player in the anti-obesity drug market.
Market growth
Weight-loss drug market potential and competition
The global demand for weight-loss drugs is skyrocketing, with competitors Eli Lilly and Novo Nordisk battling for market dominance. Some experts predict that the global weight-loss drug market could be worth a staggering $150 billion by the early 2030s. This potential growth makes Pfizer's impending acquisition of Metsera even more strategic in the long run.