Pfizer's $7.3 Billion Move into Obesity Treatment

On Monday, Pfizer unveiled its plan to acquire weight-loss drug developer Metsera in a deal valued at up to $7.3 billion, including future payments. This strategic move aims to solidify Pfizer's presence in the lucrative obesity treatment sector.

The U.S. obesity drug market has experienced significant growth, driven by incretin drugs from major players Novo Nordisk and Eli Lilly. Although the market's potential is vast, factors such as payer coverage, cost, and regulatory hurdles will determine its ultimate size and success. Pfizer's acquisition follows its previous setbacks in developing its weight-loss pill, danuglipron.

Under the terms of the deal, Pfizer will pay $47.50 per share, representing a 43% premium to Metsera's last closing price. Additionally, Metsera could receive an extra $22.50 per share based on performance milestones. Following the announcement, Metsera's shares jumped by 56% in premarket trading. The Financial Times reported the deal on Sunday.

(With inputs from agencies.)