US drugmaker Pfizer has clinched a $10 billion deal for obesity drug developer Metsera capping a fierce biotech bidding war between the New York-based pharma giant and Danish rival Novo Nordisk.
Metsera accepted a sweetened offer from Pfizer late on Friday, citing US antitrust risks in Novo's bid that it had previously called superior. The Danish obesity drug behemoth said on Saturday it would exit the race.
The bidding war win hands Pfizer a way into the lucrative obesity drug market, even if Metsera's treatments remain years from hitting the market. It marks a blow for Novo as it tries to claw back lost ground against US rival Eli Lilly.
TWISTS AND TURNS IN A BIOTECH BIDDING WAR
Pfizer appeared to have locked up the deal in September before Novo jumped in last week with an unsolicited offer, sparking a fight for a coveted asset in the growing weight-loss market. Pfizer is trying to gain a toehold in obesity to overcome past in-house stumbles in developing weight-loss drugs.
Pfizer has agreed to pay $86.25 per share in cash, a premium of 3.69% to Metsera's Friday close, Metsera said in a statement. The offer includes $65.60 per share in cash and a contingent value right entitling holders to additional payments of up to $20.65 per share in cash.
Novo Nordisk on Saturday said it would not be making an increased offer.
"Following a competitive process and after careful consideration, Novo Nordisk will not increase its offer to acquire Metsera," the Danish drugmaker said in a statement.
Novo added that it is advancing its own pipeline of treatment options for obesity, and that it would "continue to assess opportunities for business development and acquisitions ... that further its strategic objectives."
A source close to Novo said that its last unsuccessful bid had been the "maximum value" of Metsera and that the firm remained confident in its own obesity drug pipeline. The deal was never "do or die" for Novo.
"This was always a bolt-on acquisition for Novo," the person said.
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