Pfizer Stock Jumps On Bold $4.7 Billion Metsera Acquisition Bet

This article first appeared on GuruFocus.

Sep 22 - Pfizer Inc. (NYSE:PFE) moved nearly 3% higher Monday after announcing a definitive agreement to buy Metsera (NASDAQ:MTSR), a clinical-stage biopharmaceutical company focused on obesity and cardiometabolic treatments.

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Under the deal, Pfizer will pay $47.50 per share in cash at closing and up to $22.50 per share in contingent milestone payments, for a maximum of $70 per share if all milestones clear. The $47.50 cash piece alone translates into roughly $4.9 billion based on Metsera's publicly reported shares outstanding, while the full $70 per share implies about $7.3 billion in total potential value if Pfizer pays every milestone.

The initial cash offer reflects a premium of about 43%, while the full milestone payout would bring the total premium to roughly 110%. Pfizer highlighted the acquisition as a way to expand its pipeline in obesity and cardiometabolic disease, an area attracting significant interest across the pharmaceutical industry.

Metsera's pipeline includes next-generation medicines in this space, which could complement Pfizer's existing portfolio. The deal also underscores how major drugmakers continue turning to acquisitions to offset patent expirations and secure growth opportunities.

International Biotechnology Trust PLC, which disclosed a 1.1% position in Metsera as of Sept. 19, said this marks the 31st merger or acquisition involving one of its portfolio companies since 2020. The transaction remains subject to regulatory approvals and customary closing conditions.

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