Metsera Dismisses Pfizer Claims as ‘Nonsense’ in Takeover Battle
Metsera (MTSR) has publicly dismissed Pfizer’s (PFE) claims regarding their ongoing takeover battle, labeling them as “nonsense.” This response comes after Pfizer initiated a lawsuit against Metsera and Novo Nordisk (NVO), which was sparked by Novo’s unsolicited $6.5 billion bid to acquire Metsera. Previously, Metsera had agreed to a $4.9 billion deal with Pfizer.
Details of the Takeover Battle
The ongoing dispute revolves around claims that Novo Nordisk is attempting to eliminate competition in the weight-loss market through its acquisition of Metsera, a company known for its promising drug portfolio aimed at obesity treatment. Pfizer contends that Metsera has violated obligations pertaining to their takeover agreement.
Regulatory Concerns
Pfizer has suggested that any merger between Novo and Metsera would likely encounter substantial regulatory hurdles. In a bold counter-statement, Metsera asserted, “Pfizer is trying to litigate its way to buying Metsera for a lower price than Novo Nordisk.” The company emphasized its commitment to its shareholders and patients, indicating a readiness to challenge Pfizer’s allegations in court.
Market Reactions
- Pfizer shares closed at $24.66, remaining largely unchanged.
- Shares for Novo Nordisk fell slightly by less than 1% to $49.11.
- Metsera stock saw a decline of 3.7%, concluding the session at $60.73.
Strategic Implications for Novo Nordisk
Acquiring Metsera could be strategically valuable for Novo Nordisk, particularly as its primary revenue streams face potential declines due to new competition and impending drug-pricing regulations. Semaglutide, which underpins high-revenue drugs like Wegovy and Ozempic, remains pivotal for the company’s future.
Currently, while these medications are back in supply, concerns persist regarding compounding pharmacies that produce personalized versions of these drugs. Additionally, the Centers for Medicare and Medicaid Services (CMS) is set to negotiate Ozempic’s price under the recent Inflation Reduction Act, potentially further impacting Novo Nordisk’s revenue.
Pfizer’s Position and Future Prospects
For Pfizer, acquiring Metsera represents another opportunity to venture into the weight-loss market, especially after facing several setbacks with its internal obesity treatment initiatives. Although the company continues to explore early-stage treatments, the ongoing legal battles could influence its strategic decisions moving forward.
As this takeover saga unfolds, it showcases the intense competition and regulatory intricacies within the pharmaceuticals sector, particularly in the lucrative obesity treatment market.
