American pharmaceutical giant Pfizer’s up to US$7.3 billion acquisition of next-generation weight loss drugs developer Metsera will encourage more research spending on innovative products in China but is unlikely to draw new players into the fray, according to analysts.
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The acquisition of the US company, together with other deals by global pharmaceutical firms, would encourage companies already developing obesity drugs – including those in China – to continue their investments, said the consultancy’s Boston-based managing director, TJ Bilodeau.
“The deal shows that large pharma players are still willing to do large deals for differentiated innovation in this space,” he said. “Players including Pfizer, Roche, Novo Nordisk and Eli Lilly have done multiple deals to strengthen their obesity pipelines, indicating that they’re taking a portfolio approach, which creates additional opportunities for emerging innovators.”
Pfizer, the world’s second largest pharmaceutical firm by 2024 revenue, announced the acquisition of Metsera, which develops drugs for obesity and metabolic diseases, on Monday. The deal value of US$7.3 billion includes three future payments based on drug-development results. Both companies are based in New York.
The transaction includes a cash payment of US$47.50 per share, representing a 47 per cent premium for Metsera’s shares, as well as development milestone payments worth up to a total of US$22.50 per share.
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Metsera has several “next-generation” candidates under pre-human testing. The drugs aimed to achieve better efficacy and tolerability with fewer injections than products already on the market, Pfizer CEO Albert Bourla said on Monday.
