Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Novo Nordisk and Pfizer have submitted improved offers for US weight loss start-up Metsera, but the coveted biotech continues to view Novo’s bid as the “superior” option as the takeover battle escalates.
Novo’s proposal now values the biotech at up to $10bn, up from an earlier offer of as much as $9bn. Under the new proposal, Novo has offered to pay Metsera $62.20 a share upfront in cash almost immediately upon signing, in exchange for a 50 per cent non-voting stake, which converts to a controlling shareholding upon closure. A further $24 a share will be paid further down the line based on the company achieving clinical trial milestones.
Novo previously offered $56.50 a share upfront and a further $22.50 based on clinical trial goals being achieved.
The battle pits against each other two big pharma companies eager to improve their position in the growing obesity market. Pfizer is trying to enter the market, while Novo, which makes Wegovy and Ozempic, is trying to boost its pipeline after losing ground to Eli Lilly.
The unusual structure of Novo’s offer is designed to ensure investors receive the majority of the cash before the deal undergoes full regulatory scrutiny.
In a statement, the Danish company said: “Novo Nordisk believes that the proposal, including the structure of the transaction, complies with all applicable laws and is in the best interest of patients who will benefit from our commitment to innovation, as well as Metsera’s shareholders. This offer highlights Novo Nordisk’s commitment to investing in the US and interest in continuing to grow the scale of its US investments.”
Pfizer had also improved its offer, valuing the company at $8.1bn or up to $70 a share, up from an earlier bid of up to $7.3bn. The US drugmaker and Metsera have two more business days to continue negotiations.
The latest round of bids adds drama to the most contentious takeover battle for a biotech the sector has ever witnessed, in which Pfizer has attempted to exert pressure on its Danish rival through a volley of lawsuits.
The Financial Times reported earlier on Tuesday that Novo and Pfizer had offered to sweeten their bids.
Last week, Novo came in over the top of an original Pfizer deal with Metsera with an offer of up to $9bn, sparking one of the most contentious bidding wars over a biotech in recent memory.
Pfizer has accused Novo of trying to stifle competition and sued the Danish drugmaker and Metsera to try to block the deal. Its complaints have centred on the structure of Novo’s offer to pay Metsera almost immediately upon signing — a manoeuvre Pfizer called “an old-fashioned bribe”.
The US pharmaceutical company labelled Novo’s offer last week as “reckless and unprecedented”, saying it was “an attempt by a company with a dominant market position to suppress competition in violation of law by taking over an emerging American challenger”.
