Novo Nordisk, the Danish pharmaceutical powerhouse behind Wegovy and Ozempic, has escalated a bidding war with Pfizer for U.S.-based obesity biotech company Metsera. This move highlights the intensifying competition in the rapidly growing global obesity drug market, projected to reach $150 billion by the early 2030s.

Novo Nordisk Launches Rival Bid

On Thursday, Novo Nordisk submitted a revised offer of up to $8.5 billion, including $6 billion upfront and additional milestone payments, effectively overtaking Pfizer’s previous bid of $7.3 billion. Metsera described Novo’s offer as “superior” and valued the company at approximately $9 billion, or $77.75 per share. Pfizer now has four business days to respond and negotiate further.

Metsera shares surged around 22% on Thursday, continuing a dramatic rise of nearly 100% since January, reflecting investor optimism about the potential acquisition and the value of its experimental obesity drugs.

Pfizer Pushes Back

Pfizer labeled Novo’s bid as “reckless” and potentially harmful to market competition, asserting that it may pursue legal avenues to protect its rights. The U.S. pharmaceutical giant emphasized regulatory and executional risks, suggesting that Novo’s attempt to acquire Metsera could be seen as a move to suppress competition in violation of antitrust law.

Novo Nordisk, however, maintained that its offer “far exceeds Pfizer’s” and reaffirmed its commitment to investing in the U.S. market, adhering to all legal and contractual obligations under Pfizer’s merger agreement.

Strategic Implications for Novo Nordisk

This aggressive bid comes a week after significant board changes at Novo, driven by concerns over the company’s pace in the obesity market. CEO Mike Doustdar, who recently took the helm, is focused on building a next-generation pipeline of diabetes and obesity treatments, anticipating the upcoming patent expiry of semaglutide, the active ingredient in Wegovy and Ozempic.

Metsera’s pipeline, which includes the once-monthly obesity drug MET-097i (GLP-1 injectable) and MET-233i, an amylin-mimicking therapy, represents a unique opportunity for Novo to expand its portfolio and compete more effectively with rivals such as Eli Lilly. Analysts highlight that these novel treatments could differentiate Novo in a crowded market and potentially enhance its market share in the global obesity treatment space.

A High-Stakes Bidding War

Industry experts note that the bidding contest underscores the enormous value of emerging obesity therapeutics. Metsera’s projected peak sales, estimated at over $5 billion, combined with the escalating global demand for weight-loss drugs, make it a strategic acquisition target. Both Novo and Pfizer have included contingent value rights in their offers, offering additional payments if Metsera achieves clinical and regulatory milestones.

Regulatory Considerations

While Novo’s bid is aggressive, it also raises antitrust concerns. Observers question whether Pfizer will counter with a higher offer or if regulatory authorities will scrutinize the deal closely. Nonetheless, the bidding war signals the growing importance of GLP-1 therapies and next-generation obesity treatments in the pharmaceutical industry.

Outlook for the Obesity Drug Market

The global obesity drug market is one of the fastest-growing sectors in healthcare, driven by rising obesity rates and the adoption of innovative therapies. Novo Nordisk’s strategic acquisition attempts highlight its commitment to maintaining a dominant position in obesity and diabetes care, while Pfizer’s defensive stance underscores the high stakes involved.