Pfizer Inc. has finalized an agreement to acquire Metsera Inc., a pioneering weight-loss drug startup, in a substantial deal valued at $10 billion. This acquisition marks the culmination of an intense bidding competition, where Pfizer emerged victorious over rival pharmaceutical giant Novo Nordisk A/S, as reported by Bloomberg. The transaction positions Pfizer to significantly strengthen its presence in the highly competitive weight-loss market.

Metsera officially announced late on Friday the specifics of Pfizer's offer, which includes a payment of up to $86.25 per share. This comprises an initial cash payment of $65.60 per share, supplemented by potential additional payments of up to $20.65 per share, contingent upon the achievement of specific developmental and regulatory milestones. Metsera’s board of directors unequivocally determined that Pfizer's revised bid represented “the best transaction for shareholders,” a statement released by the company affirmed. Notably, this new offer from Pfizer was 5 cents per share higher than its previous proposal for the innovative startup, a move that Bloomberg News had reported earlier on Friday following Pfizer's increased offer.

This strategic acquisition is seen as a pivotal moment for Pfizer, signifying a potential comeback in the obesity treatment landscape. Pfizer is placing a significant bet on Metsera’s promising drug pipeline to effectively compete with leading rivals such as Eli Lilly & Co. and Novo Nordisk A/S. Executives at Pfizer believe that Metsera’s therapeutic candidates could enable the development of combination therapies that might fundamentally alter the standard of obesity treatment in the coming years, according to an earlier Bloomberg news report. This move follows Pfizer's decision in April to halt the production of its own internal obesity pill after a patient in a clinical trial experienced signs of liver injury. This setback had intensified speculation that Pfizer would pivot towards strategic acquisitions to enter the burgeoning weight-loss market and increased pressure on Chief Executive Officer Albert Bourla to bolster Pfizer's drug pipeline.

The fierce bidding for Metsera underscores the company’s significant potential within the obesity drug market. Metsera is widely regarded as one of several next-generation contenders, actively developing a portfolio of experimental weight-loss treatments. Among its pipeline is an injectable drug that holds the promise of being administered less frequently than the current market-leading drugs from Eli Lilly & Co. and Novo Nordisk A/S. Early research has shown promising results, with one of Metsera’s drugs, MET-233i, demonstrating that patients lost up to 8.4% of their body weight in a mere 36 days. While these results are encouraging, the drug is still in the early stages of development, meaning it is several years away from becoming available to patients, as previously reported by Bloomberg.