Novo Nordisk is raising the stakes in its push to outbid rival Pfizer for the development-stage drugmaker Metsera.
Metsera said Tuesday that Novo is now offering to pay as much as $10 billion for Metsera. That’s higher than a previous bid for up to $9 billion that sparked litigation from Pfizer.
Metsera said Pfizer also has changed an offer it made in September of nearly $4.9 billion it to provide more cash up front.
Novo is now proposing to pay $62.20 in cash for each Metsera share, up from its previous bid of $56.60. The Danish drugmaker also will tack on a contingent value right payment of $24, also improved from its previous bid, if certain development and regulatory milestones are met.
Metsera said Tuesday that the new Novo bid is superior to its existing agreement with Pfizer, and Pfizer now has a window to negotiate on its deal.
Pfizer Chairman and CEO Albert Bourla told analysts Tuesday morning that the Novo offer was “illusory” and cannot constitute a superior offer. He said that there is a high regulatory risk it won’t be completed.
Metsera said New York-based Pfizer Inc. proposed on Monday to pay $60 per share up front in cash, up from the $47.50 it proposed initially. But Pfizer reduced the contingent value right payment in its deal to $10 from $22.50.
Metsera Inc., also based in New York, has no products on the market, but it is developing potential oral and injectable treatments. That includes some potential treatments that could target lucrative fields for obesity and diabetes.
