Pfizer Wins Battle for Weight-Loss Drugmaker Metsera. Why Novo Nordisk Is the Real Winner.

Pfizer has agreed to buy the weight-loss start-up Metsera in a deal that could be worth more than $10 billion. (Mario Tama/Getty Images)

Key Points

• Metsera’s stock fell after Pfizer agreed to acquire the weight-loss drug start-up for over $10 billion.
• Pfizer’s offer for Metsera includes $65.60 per share upfront and potential additional payments of up to $20.65 per share.
• Novo Nordisk, a competitor, declined to increase its $9 billion bid for Metsera, citing financial discipline and shareholder value.

Metsera stock was tumbling on Monday after Pfizer agreed to buy the weight-loss drug start-up in a deal that could end up being worth more than $10 billion.

Wegovy and Ozempic maker Novo Nordisk lost this unusual bidding war—but it may end up being the overall winner from the deal.

Metsera stock tumbled 16% to $70.22, and Pfizer climbed 1.6% to $24.81 in early trading. Novo’s Copenhagen-listed shares rose 2.4%, while its U.S.-listed ADRs climbed 1%.

The moves came after Metsera said late Friday that it had accepted an offer from Pfizer of $65.60 per share, and a contingent value right that entitles Metsera shareholders to additional payments of up to $20.65 per share if certain milestones are hit.

Pfizer agreed to buy Metsera in September for $7.3 billion, before Novo fired back with a $9 billion bid of its own, sparking a bidding war.

The market reaction on Monday suggests that Novo investors are feeling relieved that the Danish drugmaker hasn’t matched Pfizer’s latest offer, which looks like an overpay considering Metsera’s treatments are largely unproven. Novo said in a statement that it wouldn’t increase its offer due to its commitment to financial discipline and shareholder value.

Pfizer said it expects to close the deal after a meeting of Metsera stockholders on Thursday.

Write to George Glover at george.glover@dowjones.com