Metsera Shares Dive as Pfizer-Novo Buyout Battle Concludes at $10 Billion
The recent buyout battle involving Metsera has concluded, leading to significant changes in its stock performance. Pfizer has confirmed its acquisition of Metsera for a remarkable $10 billion, although the initial bid was set at $4.9 billion.
Details of the Buyout Agreement
The final offer, affirmed late last week, values Metsera at $65.60 per share in cash, plus a contingent value right worth up to $20.65 per share. This transaction eliminates most antitrust concerns, allowing for a smoother acquisition process.
Stock Performance and Market Reactions
- Metsera’s stock decreased over 15%, dropping to $70.43 during premarket trading.
- Pfizer’s stock rose by more than 1%, reaching $24.72.
- Novo Nordisk’s stock also showed a slight increase of 1%.
After reaching a peak of $83.86 shortly after its IPO in January, when it was listed at $18 per share, Metsera’s stock has seen volatility due to the buyout saga.
Background on the Acquisition Battle
The bidding war began on October 30, when Novo Nordisk made an unsolicited offer of $6.5 billion. Pfizer quickly countered with an $8.1 billion proposal, prompting Novo to increase its bid to $10 billion. Pfizer eventually matched this offer.
Metsera’s lead product, a GLP-1-mimicking injection, could potentially provide a monthly dosage alternative compared to Novo’s weekly solutions, like Wegovy. This gives Pfizer a strategic advantage in the highly competitive obesity treatment sector.
Clinical Development and Future Implications
Currently, Pfizer is facing challenges with several of its experimental obesity drugs, particularly those that have shown liver enzyme side effects. In contrast, Metsera’s GLP-1-targeting drug is in mid-stage testing. The company also plans to develop additional combinations that incorporate both GLP-1 and amylin-related therapies, enhancing its profile in obesity treatment.
Metsera has expressed its belief that the merger with Pfizer will provide immediate and substantial value to its shareholders. The parties involved expect to finalize the acquisition following a stockholder meeting scheduled for November 13.
