Gold ticks up but remains pressured by Fed rate caution, easing trade fears
Investing.com -- Novo Nordisk shares have slipped over 2% premarket on Thursday after the company made an unsolicited bid to acquire Metsera, a U.S. obesity drug developer, in a move BMO Capital described as “an over-the-top bid” that complicates Pfizer’s ongoing takeover attempt.
Novo Nordisk is offering to buy Metsera for $56.50 per share in cash with additional contingent value rights (CVRs) of up to $21.25 per share, valuing the deal at about $8 billion, according to BMO Capital.
That compares favorably to Pfizer’s previous offer of $47.50 per share in cash and $22.50 in CVRs, which gave Metsera an enterprise value of about $4.9 billion.
“Deal terms from Novo reflect higher cash payment, giving more credit for Metsera’s later-stage obesity assets,” BMO said, noting the offer “makes a compelling case for the new higher deal.”
The firm added that Novo’s proposal confirms prior speculation that Metsera was being courted by multiple large Pharma partners.
BMO stated that the move underscores “the intensity of competition in obesity M&A,” adding that it “could read through positively to other Biotech obesity players” such as GPCR.
The analysts believe Novo’s bid highlights “continued high value interest in obesity buyouts” even among established companies already commercial in the space.
Pfizer responded sharply to the news, calling Novo’s proposal “reckless and unprecedented.”
The company communicated that it was “an attempt by a company with a dominant market position to suppress competition in violation of law,” adding that the bid “is illusory and cannot qualify as a superior proposal under Pfizer’s agreement with Metsera.”
Pfizer shares were down 0.3% in premarket trading.