Pfizer plans to spend $7.3 billion to acquire Metsera, making a strong return to the weight loss drug market.

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After encountering setbacks in its own weight-loss drug development, Pfizer is repositioning itself through a major acquisition in hopes of carving out a share in this potentially $100 billion market.

According to media reports on the 22nd, Pfizer is close to reaching a deal to acquire weight-loss drug developer Metsera for a total price of up to $7.3 billion. The report states that Pfizer will acquire the New York-based company for $47.50 per share in cash, and will pay up to an additional $22.50 per share contingent on the achievement of certain performance milestones.

This acquisition price represents about a 42.5% premium over Metsera’s Friday closing price of $33.32. In pre-market trading, Metsera’s stock price surged 51.26%, bringing its market value to about $3.5 billion.

Metsera completed a sensational Nasdaq listing earlier this year, and the current acquisition talks highlight investors’ strong interest in companies developing next-generation weight-loss therapies. Experts predict that the global weight-loss drug market could reach $150 billion by the early 2030s.

Acquisition Target Metsera: A Rising Star in the Industry

According to the terms of the transaction, Pfizer’s cash offer of $47.50 per share represents a significant premium over Metsera’s closing price last Friday. Based on that closing price, Metsera’s market value is about $3.5 billion (according to LSEG data). Including contingent value payments, the total transaction amount could reach up to $7.3 billion.

Pfizer previously encountered major setbacks in its independent development of weight-loss drugs. The company was developing an experimental weight-loss drug, danuglipron, but abandoned the project in April after interim trials showed poor tolerability.

Subsequently, Pfizer tested a once-daily extended-release version of the drug involving about 1,400 patients, but ongoing liver safety concerns further diminished the company’s ambitions in this field. These setbacks prompted Pfizer to shift to an acquisition strategy to secure a share of the rapidly growing anti-obesity drug market.

Metsera was founded in 2022 by venture capital firm ARCH Venture and investment company Population Health Partners. The company is developing injectable and oral obesity treatments based on the GLP-1 mechanism and other biological targets. Its main candidate drug, MET-097i, is an injectable that demonstrated an average weight loss of 11.3% in mid-stage trials earlier this year.

Increasing Market Competition

Demand for weight-loss drugs is surging, and competitors like Eli Lilly and Novo Nordisk are intensifying the battle for market dominance. The two companies currently hold leading positions in the GLP-1 class of weight-loss drugs, setting a high bar for new entrants.

Experts predict that the global weight-loss drug market could reach $150 billion by the early 2030s. By acquiring Metsera, Pfizer is expected to quickly gain access to a mature drug pipeline and clinical data, avoiding the lengthy R&D cycle of starting from scratch.

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