Pfizer and Novo Nordisk are engaged in an intense auction for Metsera, a biotechnology firm in the U.S. focused on creating innovative hormone-mimicking weight loss solutions. Originally developed at Imperial College London, Metsera caught Pfizer’s eye in late September. Pfizer made a straightforward acquisition offer, presenting nearly $5 billion in cash upfront, alongside more than $2 billion in performance milestone payments. Metsera agreed to this deal.
On October 30th, however, Novo Nordisk submitted an unsolicited counterproposal featuring a larger cash upfront and similar performance incentives, bringing the total to $9 billion. The agreement Metsera had with Pfizer permitted the consideration of better offers and renegotiation, which led both Pfizer and Novo Nordisk to enhance their bids to approximately $10 billion. Metsera regarded Novo’s offer as better, potentially leading to a severance of its relationship with Pfizer. In retaliation, Pfizer filed two lawsuits aimed at halting Novo’s bid. One lawsuit sought a restraining order to prevent Metsera from terminating its agreement with Pfizer but was rejected, as it was considered to enhance value for shareholders. The second lawsuit claimed that Novo’s action was anti-competitive, aiming to eliminate potential rivals to its existing products. Metsera refuted these claims, although they could attract regulatory attention from the Federal Trade Commission (FTC).
During Trump’s term, the FTC adopted a more lenient stance on merger regulations compared to the Biden administration; however, Trump’s emphasis on strengthening domestic industry and pharmaceutical production might affect Novo’s stance as a Danish organization. The FTC had greenlighted Pfizer’s deal before the deadline, yet voiced unease to Novo and Metsera’s legal teams regarding possible violations of competition law in Novo’s bid framework. Novo asserts adherence and ongoing negotiations with the FTC.
As this corporate scenario develops, Eli Lilly is positioned to take advantage of any disruptions and bolster its position as a frontrunner in metabolic hormone weight loss solutions.