Novo Nordisk's Metsera Proposal: Market Reaction Negative

Novo Nordisk shares fell more than 2% in pre-market trading on Thursday following the company’s unsolicited offer to acquire the U.S. obesity drug developer Metsera. BMO Capital referred to the offer as “an excessive bid,” noting that it complicates Pfizer’s ongoing acquisition attempt.

Novo Nordisk announced its offer for Metsera at $56.50 in cash per share and up to $21.25 in additional contingent value rights (CVRs), bringing the total value of the deal to approximately $8 billion. This provides a significant advantage over Pfizer’s earlier offer of $47.50 in cash per share and $22.50 in CVRs; this means that Metsera’s enterprise value is approximately $4.9 billion.

BMO added, “The terms of Novo’s offer reflect a higher cash payment and afford more credit to Metsera’s late-stage obesity assets.” It also noted that this offer has created “a compelling case for a new, higher deal.” According to the firm, Novo’s proposal confirms previous speculation that Metsera is being watched by multiple large pharmaceutical partners.

BMO highlighted that this move underscores “the intensity of competition in the obesity mergers and acquisitions market,” adding that this could have a positive effect on other biotechnology obesity players like GPCR. Analysts believe that Novo’s offer emphasizes a sustained high-value interest in obesity acquisitions, even among established companies already active in the sector.

Pfizer sharply responded to the news, describing Novo’s offer as “thoughtless and unprecedented.” The company stated that the bid amounted to an attempt by a market-dominant firm to stifle competition and constitute a violation of law, asserting that the offer is “fantastical” and should not be considered a superior offer under its agreement with Metsera. Pfizer shares fell 0.3% in pre-market trading.