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Novo Nordisk’s chief executive challenged Pfizer to increase its bid for obesity start-up Metsera, as the Denmark-based drugmaker again bested its US rival’s offer for the biotech.
Novo raised its bid after Pfizer matched the European company’s most recent offer late on Wednesday, valuing the company at up to $10bn, according to people familiar with the matter. The value of the improved offer could not immediately be established.
The two big pharmaceutical companies are battling it out over the US biotech, as they seek to improve their position in the growing market for weight-loss drugs by adding Metsera’s long-acting injectable and obesity pill.
Asked about the bidding war at a press conference with US President Donald Trump where Novo was announcing an obesity drug-pricing deal, chief executive Mike Doustdar confirmed the company had bested Pfizer’s latest offer.
“As of today, our bid is higher and our message to Pfizer is: if they would like to buy the company, then put your hand in your pocket and bid higher, it’s a free market,” he said.
“At the end of the day, it comes down to the price that the seller is selling for their shareholders, and the buyer is willing to pay for it. This has nothing to do with the [Federal Trade Commission] or anything else,” he added.
Novo’s newest bid, submitted on Thursday, deploys the same two-step structure that has drawn legal challenges from Pfizer and a warning from the FTC that it “may violate” antitrust rules.
Shares in Novo, once the dominant force in the weight-loss drug market with Ozempic and Wegovy, have slid 54 per cent over the past year as it falls behind rival Eli Lilly. Meanwhile, Pfizer is seeking a foothold in weight-loss drugs after its medicine being developed in-house flopped in clinical trials.
Novo, Pfizer and Metsera did not immediately respond to requests for comment.
Pfizer had agreed a deal with Metsera in September but Novo reopened the bidding with an unsolicited offer last week, which the biotech declared superior.
The US drugmaker has claimed Novo’s unusual deal structure is illegal. The two-step process is designed to ensure Metsera’s shareholders receive the majority of their payout before the acquisition is put before regulators. The Denmark-based group has said it is confident the deal will survive regulatory scrutiny.
After Novo’s latest bid, Pfizer has two days to match the offer or walk away. The shareholder vote on the deal is scheduled for November 13.
Metsera shares were up 13.9 per cent on Thursday, giving the company a market value of $8.3bn. Its share price is up 53 per cent since Novo went public with its unsolicited bid last week.
Before its latest bid, Novo previously offered to pay $62.20 a share upfront and a further $24 a share if Metsera’s drugs in development hit certain clinical milestones.
