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NEW YORK (AP) – U.S. drug giant Pfizer has signed a deal to buy Metsala, a maker of in-development obesity drugs, winning a bidding war with Novo Nordisk, the Danish drugmaker behind the weight-loss drugs Ozempic and Wigovy.
New York-based Metsala does not have any products on the market, but it is developing oral and injectable treatments. This includes several treatments that have the potential to target the high-profit areas of obesity and diabetes.
The deal comes months after Pfizer ended development of a potential pill treatment for obesity and as it seeks to develop its own stake in the market.
In a statement released Friday, Mezzala said Pfizer will acquire the company for up to $86.25 per share. This includes $65.60 per share in cash and a contingent value right that entitles the holder to an additional payment of up to $20.65 per share in cash.
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Mezzala cited U.S. antitrust risks in Novo's bid and said in a statement that its board determined that Pfizer's revised terms were “the best deal for shareholders from both a value and certainty of closing perspective.”
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The deal comes three days after Novo Nordisk raised its stake in a bid to outbid Pfizer, announcing on Tuesday it would pay up to $10 billion for Mezzala. This was higher than the previous bid (up to $9 billion) that prompted a lawsuit from Pfizer.
Metsala said Pfizer also changed its roughly $4.9 billion offer in September to provide more cash upfront.
New York-based Pfizer said in an email that it is satisfied with the terms of the deal and expects to close immediately after the Nov. 13 meeting of Metsala shareholders.
Novo Nordisk announced on Saturday that it would not increase its offer and withdraw from the race for Metsala.
Novo's proposed transaction includes paying $62.20 in cash for each Metsala share, compared to a previous bid of $56.50. The Danish drugmaker plans to add a contingent consideration entitlement payment of $24 if certain development and regulatory milestones are met, which is a further improvement from the previous bid.
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