Pfizer to buy obesity startup Metsera for $4.9 billion; shares jump on Wall Street — Details here

(Bloomberg) -Pfizer Inc., after being unable to compete with his own weight loss medications, Metser Inc. He will pay $ 4.9 billion for.

US drug producer Metsera agreed to purchase 47.50 $ cash per share, and if the total potential value of $ 7.3 billion is paid up to $ 22.50 per share if it is covered by three specific and regulatory milestones. The agreement represents 43% premium on Friday’s closing share price.

Pfizer is in the process of rebuilding after pandema, as it reduces some key drugs of the company, which is close to the end of the pill and patent life for Covid. The company’s efforts to improve growth expectations with an obesity medicine has greatly swam, and the drug giant has removed the industry’s hottest market.

Mizuho Menkul Assets Analyst Jared Holz said, “I think it is smart to put only a share and to continue to follow that it would be the biggest therapeutic category there,” he said.

While the markets were opened in New York on Monday, the shares in METSERA increased by 58%.

Metsera, one of the new generation hopes in the field of obesity, Eli Lilly & Co. and Novo Nordisk A/S develops a handful of experimental weight loss, including a larger shot from market leader drugs. A drug called Met-233i helped patients pour their weight up to 8.4% in a recent study. It is still in the early stages of development, that is, a few years away from reaching patients.

According to Michael Shah of Bloomberg Intelligence, MET-233i “The best of the class in obesity can have the potential for the best class”.

Obesity market

Pfizer relys on Metsera’s drug pipeline to start discussing with resident competitors, and believes that the therapy managers who can be merged to the company can steadily change the standard of obesity care in the coming years.

“I think what we have is ashamed of the riches,” he said in a call with analysts James, the company’s capital officer James.

The size of the obesity market is expected to reach $ 100 billion by 2030, while Astrazeneca PLC is eager to join Roche Holding AG to capture drug producers Novo and Lilly. The Pfizer Agreement was first reported by the Financial Times.

After developing symptoms of liver damage in a clinical study, Pfizer ended the development of the obesity pill in April with Sparking Sparks, where the company will try to enter the weight loss market with purchases.

Abandonment increased the pressure of Pfizer’s pipeline to renewal of Pfizer, Chairman of the Executive Officer, Albert Bourla. Patent ending is expected to erode sales more than $ 15 billion at the end of ten years.

The company’s shares fell approximately 60% of the pandemic summits.

Amylin treatments

Metsera’s medicine belongs to a class called long -acting amylin analogs. GLP-1 drugs, such as Amylin, Wegovy and Zepbound, have been a softer option that may have high side effects, including nausea and vomiting. Abbvie Inc., in March, up to $ 2.2 billion in the Gubra A/s after accepting the acquisition of Amylin’e betting. Market leaders test Novo and Lilly Amilin treatments.

About six months ago, Roche agreed to pay $ 5.3 billion to licens another amylin drug other than Danish Biotech Zealand Pharma A/S.

Amylin has been a bright point because other recent obesity studies have disappointing results. Viking Therapeutics Inc. It was once seen as a possible package target for Pfizer, but a recent trial showed a high rate of side effects and reduced the hopes of an agreement.

BMO Capital Markets Analyst Evan Seigerman said in a note shortly before the agreement, “Metsera’s obesity therapeutic pipeline can be injected by Metsera’s long -effective injection and make a more reliable threat in the obesity view of Oral agents and Pfizer.”

Chris Boshoff, Chief Science Officer, said Pfizer could make more agreements before the year. The company said it would spend $ 15 billion for purchases in 2025. Metsera procedure, Pfizer’s China -based 3SBIO Inc.

-Subrat Patnaik and help from Naomi Kresge.

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