Pfizer to Acquire Metsera for $73 Billion, Boosting Weight Loss Drug Portfolio

Pfizer is set to acquire Metsera for 73 billion dollars, a move that aims to bolster its product lineup following recent setbacks in its highly anticipated weight loss drug project. The acquisition is expected to be announced as early as Monday, with Pfizer offering 47.50 dollars per share in cash for Metsera. Additionally, Pfizer may pay an extra 22.50 dollars per share if certain performance milestones are met, marking a significant premium over Metsera's closing price of 33.32 dollars on Friday. Neither party has commented on the matter as of the non-working hours.

Metsera, a promising player in the next-generation weight loss drug sector, is vying for a share of the multi-billion-dollar weight loss drug market. Upon completion of the acquisition, Pfizer will gain access to Metsera's weight loss injection MET-233i, which has shown potential in early small-scale trials, helping patients lose up to 8.4% of their body weight in just 36 days.

Notably, MET-233i could offer a lower dosing frequency compared to existing products from market leaders like Novo Nordisk and Eli Lilly, potentially reducing patient injections from once a week to once a month. This could provide a competitive edge over current therapies.

Pfizer plans to complete two to three transactions this year, totaling 150 billion dollars, to enhance its product offerings. The company's in-house weight loss drug business was initially seen as a key breakthrough into the market, but the failure of its weight loss pill project has increased pressure on Chief Executive Officer Albert Bourla.

Analysts speculate that by acquiring smaller weight loss drug companies, Pfizer could regain its competitive footing. Currently, Pfizer is grappling with declining demand for its COVID-19 vaccines and treatments, and it is expected to face over 150 billion dollars in sales losses by the end of the decade due to patent expirations.

Metsera, based in New York, is one of the new generation of companies poised to enter the obesity market. The company is testing multiple experimental therapies, including a drug that mimics the mechanism of action of GLP-1 hormones, similar to Novo Nordisk's Wegovy and Ozempic.

Metsera's development strategy involves pursuing MET-233i as a standalone therapy while also exploring its combination with GLP-1 drugs—a similar approach to Novo Nordisk's next-generation drug CagriSema.

According to company disclosures, MET-233i has shown a half-life of approximately 19 days in clinical trials, significantly longer than current market-leading therapies. This characteristic could support a lower dosing frequency. To date, no serious adverse events have been observed, with recorded side effects being mild and gastrointestinal in nature.

However, the drug is still in the early stages of development and is years away from potential market entry. Despite this, the obesity market is projected to reach 1300 billion dollars by 2030, making companies like Metsera attractive to investors.

MET-233i is a long-acting insulin analog, which may offer milder side effects compared to GLP-1 drugs, which are known for causing nausea and vomiting. Currently, Novo Nordisk, Eli Lilly, and Zealand Pharma A/S are all advancing insulin therapies.

Michael Shah, a senior pharmaceutical analyst, previously noted that MET-233i has the potential to be the "best-in-class" in the obesity treatment field, with its long half-life supporting a once-monthly dosing regimen and offering a significant differentiation from competitors.