By Bhanvi Satija

LONDON, Oct 30 (Reuters) - Metsera ( MTSR ) has become

the obesity drug market's hottest ticket.

The New York-based biotech is at the centre of a bidding war

between Novo Nordisk and Pfizer ( PFE ), both vying

for access to its pipeline of experimental treatments as

competition intensifies in the booming $150 billion weight-loss

drug market.

Metsera's ( MTSR ) lead candidate, MET-097i, is a once-monthly GLP-1

injectable.

Unlike Novo's Wegovy and Eli Lilly's ( LLY ) Zepbound, which

are both weekly shots, it works by selectively binding to a

protein pathway linked to weight loss and insulin release,

potentially reducing side effects and dosing frequency.

PROMISING CANDIDATES IN THE PIPELINE

Last month, data from a mid-stage study showed the highest

dose of the drug helped patients lose an average of up to 14.1%

of their body weight.

Another early-stage candidate is MET-233i, a long-acting

drug that targets the pancreatic hormone amylin which is

co-secreted with insulin.

Analysts at Leerink estimate the drugs could be worth more

than $5 billion in peak annual sales.

Founded in 2022 by Population Health Partners and ARCH

Venture Partners, the biotech venture giant led by Bob Nelsen,

Metsera ( MTSR ) has drawn deep-pocketed backers including Google-parent

Alphabet, which has a 5% stake.

Nelsen's ARCH is the top shareholder with a 25% stake. Clive

Meanwell, one of the Population Health co-founders, is Metsera's ( MTSR )

executive chairman.

SoftBank and Mubadala Capital participated in a $290 million

fundraising in 2024.

Since its market debut on Nasdaq in February at a $2.7

billion valuation, Metsera ( MTSR ) has doubled to $5.5 billion. Its

shares on Thursday rose nearly 24%.

Pfizer's ( PFE ) bid is worth $7.3 billion including milestones,

while Novo's is worth up to $9 billion.

Another Population Health co-founder Ian Read also

previously served as Pfizer ( PFE ) CEO and chairman. He retired from

Pfizer ( PFE ) in 2019 and served as partner for the investment firm

until at least September 2022.

SIGNALLING A NEW PHASE IN OBESITY DRUG RACE

The bidding may signal a new phase in the obesity drug race,

which was ignited in 2021 by Novo's launch of Wegovy, the first

highly effective obesity drug approved in the U.S.

The Danish company's meteoric rise saw it catapulted to the

top of Europe's stock market and was worth about $650 billion at

its peak last year.

Since then, fierce competition from Lilly, and a flood of

copycats have slowed Wegovy sales, knocking its share price by

more than 60%.

Lilly is the world's most valuable healthcare company at

about $770 billion. Its shares have risen 9.6% this year.

Investor fervour for the market remains strong. On Thursday,

the battle for Metsera ( MTSR ) boosted shares in its rivals, as

investors hunted for the next breakout.

Viking Therapeutics ( VKTX ) and Structure Therapeutics ( GPCR )

rose 9.5% and 6% respectively.

Viking is developing oral and injectable GLP-1 treatments,

while Structure is working on an oral weight-loss pill. Their

treatments are ahead in development, compared to Metsera's ( MTSR ).

Shares of Altimmune ( ALT ), which is developing the

pemvidutide injection, also rose on Thursday, by 4.5%.