Pfizer Faces Off With Novo Nordisk Over Metsera Bid

This article first appeared on GuruFocus.

Pfizer (PFE, Financials) is weighing its next move after Novo Nordisk made a higher offer for U.S. obesity drug developer Metsera, triggering a potential bidding war in a market projected to reach $150 billion. Metsera called Novo's bid superior, giving Pfizer four days to counter or walk away.

Warning! GuruFocus has detected 5 Warning Signs with PFE. Is PFE fairly valued? Test your thesis with our free DCF calculator.

Analysts say Pfizer could use its strong connections within the Trump administration to bolster its case, with CEO Albert Bourla maintaining close ties to the president and positioning the company as a U.S.-aligned player. Pfizer has also indicated it may challenge Novo's offer in court.

Pfizer's interest in Metsera reflects its urgent need for a breakthrough in obesity treatments after several clinical setbacks and a sharp post-pandemic decline in sales. Investors remain cautious about the company overpaying for acquisitions.

Novo Nordisk, already dominant in obesity drugs, could face antitrust scrutiny from the U.S. Federal Trade Commission if it proceeds. Pfizer's response whether a higher bid or legal action could shape the next phase of the fast-growing weight-loss drug market.

View Comments