Pfizer Inc. ( PFE ) secured a $10 billion deal to acquire obesity drug developer Metsera, Inc. ( MTSR ) , beating out Novo Nordisk ( NVO ) A/S after a heated bidding war that captivated Wall Street.

Metsera Board Backs Deal

Under the deal, Pfizer ( PFE ) will pay $86.25 per share, consisting of $65.60 in cash and a contingent value right worth up to $20.65 per share, depending on future milestones.

Metsera's ( MTSR ) board unanimously backed Pfizer's ( PFE ) offer on Friday, and recommended shareholders approve the deal at their upcoming Nov. 13 meeting.

Pfizer ( PFE ) appeared to have finalised the deal in September, before Novo jumped in last week with an unsolicited offer, sparking a bidding war for a coveted asset in the growing weight-loss market. Metsera’s shares jumped over 30% amid the chatter this week.

The company said Novo’s proposal posed “unacceptably high legal and regulatory risks” after the Federal Trade Commission (FTC) warned that a merger with Novo could raise antitrust concerns.

Also Read: Pfizer Accuses Novo Nordisk Of Antitrust Violations In Metsera Takeover Battle

Novo Nordisk ( NVO ), which briefly appeared to have the upper hand, has been seeking to recover market ground lost to Eli Lilly ( LLY ) in the weight-loss drug sector.

Pfizer Bets Big On Next-Gen Weight-Loss Drugs

Metsera's ( MTSR ) pipeline includes MET-097i and MET-233i, an experimental amylin analog. Analysts at Leerink Partners estimate the two drugs could reach $5 billion in combined peak annual sales, according to a Reuters report.

The acquisition comes as Pfizer ( PFE ) faces declining COVID-19 product sales, with third-quarter revenue down 6% year over year to $16.65 billion, while Ozempic-maker Novo Nordisk ( NVO ) posted an 11% rise in constant-currency sales to $11.75 billion, driven by obesity and diabetes treatments.

According to Benzinga's Edge Stock Rankings, Pfizer ( PFE ) demonstrates a steady upward trajectory in short and medium-term periods but a downward trend in the long-term. Click here for a detailed breakdown of its performance, along with comparisons to its peers and competitors.

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