TLDRs;
- Pfizer is nearing a $7.3B acquisition of Metsera, betting big on obesity drugs after halting its own pill.
- The deal includes $47.50 per share in cash plus milestone-based payments of $22.50 per share.
- Pfizer stock (PFE) closed at $24.14, up slightly, as investors weigh risks and long-term benefits of the buyout.
- The acquisition positions Pfizer against Novo Nordisk and Eli Lilly in the highly competitive weight-loss drug market.
Pfizer Inc. (NYSE: PFE) is reportedly close to sealing a deal worth up to $7.3 billion to acquire Metsera, a rising biotech focused on obesity treatments.
According to a reports Pfizer intends to pay $47.50 per share in cash, with an additional $22.50 per share contingent on Metsera achieving specific clinical milestones. That conditional structure brings the total potential value of the acquisition to $7.3 billion.
Metsera, which went public on Nasdaq earlier this year, has attracted investor interest with its portfolio of injectable and oral obesity therapies, led by its flagship candidate MET-097i. The buyout, if finalized, could be announced as early as September 22.
Shares Trade Higher Amid Acquisition Buzz
Pfizer’s stock reflected cautious optimism from investors following the news. On Friday, PFE shares closed at $24.14, up 0.44% on the day.
The stock opened higher, peaked briefly above $24.70, before paring gains as the trading session matured. Despite the modest uptick, Pfizer remains well below its 2021 highs, as the post-pandemic revenue surge from COVID-19 vaccines fades.
Analysts note that the Metsera deal could inject fresh momentum into Pfizer’s pipeline, helping offset declines in other segments. However, investors also remain wary of the costs involved and the competitive landscape, dominated by players like Novo Nordisk and Eli Lilly.
Metsera Brings Fresh Market Opportunity
Metsera’s appeal lies in its focused approach to obesity drug development, an area increasingly seen as the pharmaceutical industry’s next blockbuster category.
The company’s lead candidate, MET-097i, is designed as both an injectable and oral treatment. If successful, it could capture a share of the rapidly expanding weight-loss therapeutics market, which some analysts project could exceed $100 billion annually within the next decade.
The $47.50 per share offer represents a 42.5% premium over Metsera’s closing price of September 19, which valued the company at around $3.5 billion. The additional milestone-based payout structure suggests Pfizer is hedging risks while signaling confidence in Metsera’s clinical pipeline.
Broader Strategic Shift for Pfizer
The Metsera acquisition marks a pivotal strategic shift for Pfizer. Last year, the company abandoned development of danuglipron, its experimental obesity pill, due to safety concerns. By pivoting to Metsera, Pfizer is effectively buying its way back into the weight-loss race.
This move follows other efforts to strengthen its innovation portfolio, including its AI-driven partnership with Nvidia in Singapore. That collaboration aims to accelerate AI-powered drug discovery across Southeast Asia and globally, reducing development timelines while boosting efficiency.
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