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In an unexpected turn of events, the Denmark-based pharmaceutical leader has submitted a stunning nine billion dollar acquisition proposal for the US biotech company, a maker in weight-loss medications, potentially gazumping an existing takeover proposal from Pfizer.

Takeover Battle Heats Up

This fresh offer emerges just weeks after the biotech firm had agreed to a $7.3 billion acquisition from the US group. Novo Nordisk, known for the blockbuster obesity medications Ozempic and Wegovy, had earlier been unsuccessful in a intense auction process in the previous month.

The US pharmaceutical firm criticized the unsolicited proposal, accusing the Danish rival of making a “reckless” bid and asserting it was “a move by a company with a leading industry standing to curb rivalry in breach of antitrust regulations by taking over an promising US challenger”.

Pfizer now has only 4 business days to improve its current offer for the American upstart, which began trading on the stock market recently.

Metsera's Attraction Is a Prime Takeover Prospect

Metsera is considered a valuable acquisition candidate in part because of its promising pipeline of weight-loss medications. The firm has four current clinical trials, featuring a weight-loss pill, a monthly injection, and 2 medications that stimulate feelings of fullness using the peptide amylin. A number of scientists suggest amylin could reduce the type of muscle wasting that has been a concern with available treatments.

Offer Details

• The bidder has proposed $56.50 per share for Metsera, valuing the firm at approximately $6.5bn.
• It proposed a additional $21.25 a share, equivalent to about two and a half billion dollars, if Metsera achieves certain clinical and regulatory goals.

Novo Nordisk commented in a release that the merger “would be in line with Novo Nordisk’s strategic strategy of developing innovative and distinct medicines and helping millions more people suffering from obesity and the metabolic condition and their related comorbidities”.

The Target's View

Metsera announced that Novo Nordisk’s offer was “better” to the existing bid from Pfizer, which had offered $47.50 a share, and a further $22.50 for achieving further targets.

Competitor's Response

But Pfizer argued the European firm’s bid was set up in a way that was meant to “circumvent antitrust laws” and “presents substantial regulatory and executional risk”. Additionally, it rejected the notion that the bid was superior to its proposal, labeling it “unrealistic”. The company announced it was “ready to follow all legal avenues to enforce its rights under its deal”.

Market Context

The Danish drugmaker has been facing a decelerating pace of earnings increase and a fall in its share price, especially after falling behind to its US rival Eli Lilly, which manufactures the Zepbound and Mounjaro treatments. Clinical studies have shown that the rival drug is better in inducing shedding pounds than Wegovy.

Eli Lilly increased its annual forecast on recently, as third-quarter sales from those weight-loss and diabetes drugs exceeded expectations. The company said it was also planning to present its own oral obesity treatment to regulators by the end of the year.