Novo Nordisk has escalated the competition in the obesity-drug sector by submitting an $8.5 billion bid for U.S. biotech company Metsera, overtaking Pfizer’s earlier offer valued at $7.3 billion. Novo’s proposal includes $6 billion upfront, with the remaining value tied to milestone payments, while Pfizer's structure also involved contingent milestones. Pfizer responded sharply, calling Novo’s move “reckless” and warning that it could harm competition in the already heated weight-loss drug market.
This move marks a strategic and assertive shift for Novo Nordisk, coming shortly after a shake-up in its leadership where most of the board was replaced under pressure to accelerate progress in obesity treatments. The company aims to strengthen its position in a therapeutic space projected to reach $150 billion by the early 2030s, driven primarily by surging demand for GLP-1-based drugs developed by companies like Novo and Eli Lilly. Securing Metsera's pipeline would allow Novo to expand its obesity portfolio and accelerate innovation, particularly given Metsera’s complementary research and technology assets.
Both Novo and Pfizer structured their offers to include contingent value rights tied to clinical and regulatory outcomes, reflecting the inherent uncertainty in bringing obesity treatments to market. Analysts, including David Risinger of Leerink Partners, estimate that Metsera’s drug pipeline could generate more than $5 billion in peak annual sales if successfully commercialised. This revenue potential explains why Metsera has become a prized target in the pharmaceutical sector’s most aggressively contested therapy segment.
Metsera’s value has risen rapidly due to promising early-stage candidates such as MET-097i, a GLP-1 injectable, and MET-233i, an amylin-mimicking therapy designed to enhance metabolic control. These assets have helped drive investor confidence, with the company's share price nearly doubling this year from $26.50 at the end of January to over $52 at the most recent close. The takeover contest signals the intensifying global race among drugmakers seeking dominance in the next major pharmaceutical growth frontier, where efficacy, speed to market, and pipeline depth will likely decide long-term leadership.
