Mentioned:
Pfizer wants to get in on the weight loss drug business. And they’re putting up billions of dollars to do it.
What’s happening:
- Pfizer (NYSE: PFE) has entered into an amended merger agreement to acquire GLP-1 drug developer Metsera (NASDAQ: MTSR) in an all cash deal worth up to $10B USD
By the numbers:
- Pfizer will pay $65.60 USD per share for Metsera up front and up to $20.65 per share in additional cash payments upon the completion of specific milestones
Why it matters:
- The new acquisition of Metsera is Pfizer’s first ever venture into GLP-1 drugs for weight loss which have exploded in popularity in the United States and globally
Going deeper:
- Metsera is developing some of the most advanced injectable and oral GLP-1 drugs for obesity that have shown exceptionally promising patient outcomes in initial clinical trials
- Metsera also has a drug development pipeline of other early stage therapeutics for both weight loss and metabolic diseases that will be acquired by Pfizer as part of the new deal
The fine print:
- None of Metsera’s GLP-1 drugs have currently been approved by the United States Food and Drug Administration
