Pharmaceutical titan Pfizer to acquire obesity biotechnology company Metsera in a deal valued at approximately $7.3 billion. Pfizer announced it would pay $4.9 billion, and potentially more, for its catalog of weight loss medications. They will pay $47.50 per Metsera share, with the chance for shareholders to receive up to $422.50 more per share. 

Reasons for Acquisition

• GLP-1 Technology: With the release of GLP-1 treatments like Ozempic and Wegovy, pharmaceutical companies are joining in on the obesity drug sector. Metsera is the owner of an injectable GLP-1 stimulating agent that only needs to be administered monthly, rather than weekly, making it a desirable product.

• Incretin & Amylin Programs: Along with Metsera’s GLP-1 technology, they have multiple treatments and programs for weight loss. Their treatment MET-233i mimics the gut hormone amylin to suppress appetite, control glycemic levels, and slow gastric emptying.

• Re-Entry to the Obesity Drug Sector: Pfizer, a company you’ve no doubt heard of due to their quick response during the COVID-19 pandemic, has been behind the obesity drug boom ushered in by Ozempic. While they had their own oral GLP-1 receptor agonist to encourage weight loss, Pfizer discontinued its development due to safety issues. This acquisition re-enters them into the obesity drug sector with a portfolio of valuable weight loss drugs.

Conclusion

Pfizer’s acquisition of Metsera comes down to one thing: relevance in an ever-changing market. Pfizer hasn’t kept up with the evolution of GLP-1, incretin, or amylin treatments. This acquisition catapults them into the obesity drug sector through the addition of new technology without the need to develop it themselves. 

Are you interested in making a move like Pfizer? Contact Stony Hill Advisors today to speak to an experienced M&A advisor.