Metsera stock jumps as Novo Nordisk said to make higher bid for obesity startup - report

[New Nordisk]
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Metsera (MTSR [https://seekingalpha.com/symbol/MTSR]) shares jumped nearly 19% premarket on Thursday after _Bloomberg _reported that Danish drugmaker Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]) has made a higher offer for the obesity startup, aiming to outmatch Pfizer’s (PFE [https://seekingalpha.com/symbol/PFE]) previously agreed deal and strengthen its dominance in the fast-growing weight-loss drug market.

Novo, which had made an earlier offer before Metsera’s $4.9 billion agreement with Pfizer, has now returned with an improved proposal in both value and structure, the report said, citing sources. The companies are in advanced discussions, and a potential agreement could be reached as soon as Thursday, though no final decision has been made.

Pfizer’s deal [https://seekingalpha.com/news/4496839-pfizer-nears-73b-takeover-of-weight-loss-drugmaker-metsera-ft-reports], announced in September, included $47.50 per share upfront and up to $22.50 per share in milestone payments. A Metsera deal would deal a setback to Pfizer (PFE [https://seekingalpha.com/symbol/PFE]), which is struggling with declining Covid vaccine sales and looming patent expirations after its own obesity pill failed due to safety issues.

Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]), though leading in weight loss, is also under pressure to develop next-generation treatments after its CagriSema drug underperformed, as it seeks to stay ahead of Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]).

Metsera’s (MTSR [https://seekingalpha.com/symbol/MTSR]) shares have nearly tripled this year to $52.21, valuing the company at about $5.5 billion. Pfizer (PFE [https://seekingalpha.com/symbol/PFE]) shares were little changed, while Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]) slipped 1.5% in Copenhagen.

The firm is developing next-generation obesity treatments, including a long-acting amylin analogue that could require less frequent dosing than the market-leading drugs from Novo Nordisk’s (NVO [https://seekingalpha.com/symbol/NVO]) and Eli Lilly’s (LLY [https://seekingalpha.com/symbol/LLY]). Amylin-based drugs are seen as a gentler alternative to GLP-1 treatments like Wegovy and Zepbound, which often cause nausea and vomiting.

MORE ON NOVO NORDISK, PFIZER, ETC.

* Novo Nordisk: Decade-Low Valuation Meets A Billion-Patient Market [https://seekingalpha.com/article/4833234-novo-nordisk-stock-decade-low-valuation-meets-billion-patient-market]
* Why Pfizer's Headwinds May Already Be In The Price [https://seekingalpha.com/article/4833169-why-pfizers-headwinds-may-already-be-in-the-price]
* Novo Nordisk's Lottery Ticket Against Alzheimer's Disease [https://seekingalpha.com/article/4832970-novo-nordisks-lottery-ticket-against-alzheimers-disease]
* FDA looks to bring cheaper biosimilar drugs to market faster [https://seekingalpha.com/news/4510628-fda-looks-to-bring-cheaper-biosimilar-drugs-to-market-faster]
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