TLDR
- Pfizer is acquiring biotech company Metsera for $4.9 billion at $47.50 per share
- Metsera develops multiple weight loss treatments including GLP-1 drugs and amylin-mimicking medications
- The deal gives Pfizer access to both weekly/monthly injectable drugs and upcoming oral weight loss pills
- Metsera stock jumped over 61% in premarket trading before later declining 7.19%
- This marks Pfizer’s major entry into the obesity treatment market after previous failures
Pfizer has announced plans to acquire clinical-stage biotech company Metsera for $4.9 billion. The pharmaceutical giant will pay $47.50 per share for the obesity drug developer.
Metsera focuses on developing multiple approaches to weight loss treatments. The company has a potential weekly and monthly GLP-1-targeting drug in development.
This drug works similarly to Novo Nordisk’s popular weight loss medication Wegovy. Metsera also has a monthly-dosed drug that mimics amylin, a hormone that helps regulate blood sugar levels and appetite.
The biotech company has two oral weight loss pills that are expected to begin human testing soon. These pills represent another avenue for treating obesity through different mechanisms.
Pfizer CEO Albert Bourla explained the strategic reasoning behind the acquisition. He noted that obesity affects over 200 health conditions and represents a growing market opportunity.
Pfizer’s Return to Obesity Market
The deal marks Pfizer’s renewed push into obesity treatments after facing setbacks in this area. The company has experienced two high-profile failures in weight loss drug development previously.
Bourla stated that the acquisition aligns with Pfizer’s focus on directing investments to impactful opportunities. The deal positions Pfizer to compete in the rapidly expanding weight loss drug market.
Market Reaction and Financial Details
Metsera shares initially surged more than 61% to $53.75 in premarket trading following the announcement. However, the stock later declined by 7.19% during regular trading hours.
Pfizer stock rose 1.4% to $24.35 in premarket trading. The acquisition price of $47.50 per share represents a premium over Metsera’s previous trading levels.
Analysts have mixed views on the deal despite its strategic benefits for Pfizer. Some express concerns about Metsera’s current financial losses and lack of revenue.
Metsera currently has a market capitalization of approximately $3.5 billion. The company’s year-to-date stock performance shows a gain of 25.74%.
The acquisition gives Pfizer immediate access to multiple obesity treatment candidates at different development stages. Technical analysis suggests a “hold” sentiment for Metsera stock following the announcement.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
