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Pfizer (PFE) announced on Monday its plan to acquire biotechnology firm Metsera (MTSR) for $4.9 billion, equating to $47.50 per share, with the deal expected to close by the end of 2023. The potential total value could rise to $7.3 billion, including milestone payments that could increase the acquisition price to $70 per share.
Following the announcement, Metsera’s stock surged over 60% to over $50, while Pfizer’s shares remained stable around $24. The acquisition aims to bolster Pfizer’s position in the burgeoning obesity drug market, projected to reach $100 billion by 2030, where Eli Lilly (LLY) and Novo Nordisk (NVO) currently lead.
Metsera, which raised $316.2 million through its IPO earlier this year, is in the clinical stage and is developing obesity drugs like MET-097i, which is entering phase two trials. However, it is not expected to generate significant revenue shortly, contrasting with Pfizer’s strategic need to offset existing patent expirations for key treatments.
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