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Novo, Pfizer ( PFE ) raise their bids on Thursday for Metsera ( MTSR )

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Pfizer ( PFE ), Metsera ( MTSR ) have not confirmed offers, Novo declines

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Obesity drug market projected to reach $150 billion by

next

decade

(Recasts with bidding new details, paragraphs 1-4, adds Metsera ( MTSR )

background, paragraph 5)

By Sabrina Valle and Maggie Fick

NEW YORK/LONDON, Nov 6 (Reuters) - The Pfizer ( PFE )

and Novo Nordisk battle for obesity drug developer

Metsera ( MTSR ) intensified on Thursday after a fresh round of

sweetened bids.

Novo raised its offer for the U.S. biotech on Thursday just

hours after New York-based Pfizer ( PFE ) matched the Danish drugmaker's

previous $10 billion proposal late on Wednesday, according to

two people familiar with the process.

The acquisition fight has escalated into a legal and

strategic standoff with Novo seeking to wrest Metsera's ( MTSR ) obesity

drug assets from Pfizer's ( PFE ) grip through a complicated deal

structure that has drawn scrutiny from regulators.

Both Pfizer ( PFE ) and Novo raised their offers, with the exact

dollar amount unknown, according to people close to the matter.

The bidding war started privately in January and became public

last week, when Novo made an unsolicited offer for Metsera ( MTSR ) in a

challenge to Pfizer's ( PFE ) $7.3 billion agreement announced in

September.

There were at least 16 separate offers exchanged between

the two companies, according to public records.

METSERA PIPELINE PRIZE

The bidding war centers on Metsera's ( MTSR ) pipeline of

experimental obesity treatments that analysts estimated could be

worth several billion dollars annually if they are approved. Its

lead drug candidate is a once-monthly injection.

Novo is trying to recover a once-commanding position in the

increasingly competitive weight loss market it has lost to Eli

Lilly ( LLY ), while Pfizer ( PFE ) aims to overcome past stumbles and

enter the highly lucrative field.

Pfizer's ( PFE ) seventh bid, according to public documents, matched

Novo's $10 billion offer just ahead of a deadline that would

have left it out of the race. Novo responded on Thursday.

The oneupmanship has been a boon to Metsera ( MTSR ) shareholders.

Its shares were up more than 13% on Thursday and have gained

nearly 50% since Novo made its public unsolicited bid last week.

The latest round of bidding follows a Delaware court's

decision on Wednesday to not block Metsera ( MTSR ) from walking away

from its agreement with Pfizer ( PFE ), and comes amid scrutiny from the

U.S. Federal Trade Commission over Novo's two-step acquisition

structure.

The Financial Times first reported that Novo had once again

raised its bid after Pfizer ( PFE ) matched Novo's offer.

Metsera ( MTSR ), Pfizer ( PFE ) and Novo did not comment on the report of

the renewed bids.

Some analysts estimate the obesity drug market will hit

$150 billion early next decade.

"Some assets are truly worth fighting over," said Peter

Kolchinsky, managing partner at RA Capital, a major investor in

early-stage biotech firms, and a top-20 Metsera ( MTSR ) shareholder.

Pfizer ( PFE ) shares were up 1%, while Novo Nordisk droppped 3% in

Europe.