By Bhanvi Satija

LONDON (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%.