Metsera acquired by Pfizer in $7.3B deal to boost obesity drug pipeline

Pfizer has announced plans on Monday to takeover weight-loss developer Metaera in a massive deal worth up to $7.3 billion in a bid to enter the obesity market and boost the obesity drug pipeline.

In recent years, the global obesity drug market has experienced a massive boom on the back of the success of highly effective GLP-1 tested by prominent firms, such as Eli Lilly and Novo Nordisk.

In the backdrop of fierce competition to develop next-gen obesity treatments and unprecedented developments, the global obesity market growth is expected to reach $150 billion by the 2030s.

Pfizer CEO Albert Bourla dubbed Metsera’s acquisition as a major development that will “push Pfizer into this key therapeutic area.”

The purchase will also help the firm to capitalize on cardiometabolic expertise and state-of-the-art infrastructure to speed up development of next-gen obesity medicines.

The deal came on the heels of recent setbacks that the biotech firm faced during the development of weight-loss pill danuglipron.

During the trials, the company had to stop the pill development due to drug-induced liver injury in a patient.

As per deal, Pfizer will pay Metsera $47.50 per share in cash. This represents a 43 percent increase from the New York-based company’s last closing price.

Following the announcement, Metsera’s stocks surged nearly 60 percent to $53.16 in premarket trading. On the other hand, Pfizer’s shares also saw an increase of around 2 percent.