Novo Nordisk, the maker of obesity drugs Wegovy and Ozempic, and US pharma company Pfizer have improved their offers to buy US startup Metsera, which develops weight-loss drugs. The company itself still considers Novo's offer "more favorable" despite the escalating battle for the deal, the Financial Times writes.

According to Novo's updated proposal, the Danish company now values Metsera at $10 billion rather than $9 billion. Novo is willing to pay $62.2 per share upfront immediately after signing the agreement, under which it will receive 50% of the company's non-voting shares, which will convert into a controlling stake after the deal closes. Additionally, Metsera may receive another $24 per share later when key clinical trial milestones are reached.

Metsera noted that this corresponds to a premium of about 159% to the closing price on Sept. 19, the last day before Pfizer announced its intention to acquire the company.

Pfizer also improved its offer, valuing Metsera at $8.1 billion. Earlier it valued the startup at $7.3 billion. Pfizer and Metsera have two more working days left for negotiations, the FT writes.

What's going on around Metsera

Novo's attempt to outbid Pfizer last week triggered one of the most heated and public "biotech wars" of recent years, writes the FT. Both companies have faced setbacks in the rapidly growing market for weight-loss drugs: Novo lost market leadership to US-based Eli Lilly, while Pfizer's development of an obesity drug failed due to side effects during trials.

The loss of Metsera, which is developing several experimental weight loss drugs, would be a major blow to Pfizer's plans to regain ground after the pandemic, Bloomberg noted. After the maker of Ozempic made a counteroffer with a better price, Pfizer accused Novo Nordisk of trying to stifle competition and filed lawsuits against the Danish company and Metsera to block the deal.

Some analysts have already expressed fears that Pfizer and Novo will overpay for the startup, which has been in existence for only three years and has several drugs in early and mid-stage development, Bloomberg writes. Metsera shares jumped by almost 20% in trading on November 4. Judging by the dynamics of quotations, the market suggests that the stakes in the battle for the company may still increase, said Jared Holtz, a strategist for the health sector at Mizuho Securities.

This article was AI-translated and verified by a human editor

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