Pfizer (PFE) Stock: Company Files Dual Lawsuits Against Novo Nordisk Over Metsera Deal

TLDR

• Pfizer filed two lawsuits against Novo Nordisk over competing $9 billion Metsera bid
• Novo’s 30-month closing period compared to Pfizer’s nine-month timeline sparks antitrust concerns
• Metsera board favors Novo’s offer after shareholder-driven board overhaul
• Delaware judge hears case Tuesday as Pfizer faces deadline to submit higher bid
• Pfizer sees Metsera as key entry into $150 billion obesity drug market

Pfizer escalated its battle for Metsera on Monday with two separate lawsuits against Novo Nordisk. The legal action challenges the Danish company’s $9 billion competing bid for the obesity drug developer.

Pfizer agreed to acquire Metsera for up to $7.3 billion in September. The deal came after months of private negotiations between Pfizer and Novo.

Metsera had rejected Novo’s offers six times before citing antitrust concerns. But last week, Novo’s top investor restructured Metsera’s board.

Pfizer Inc., PFE

The Danish drugmaker then launched a fresh $9 billion unsolicited bid. Metsera’s new board declared the offer superior and gave Pfizer until Tuesday to counter.

Pfizer Questions Timeline and Motives

Pfizer’s main complaint targets Novo’s proposed 30-month closing period. The lawsuit argues this timeline would delay Metsera’s obesity treatments from reaching patients.

Pfizer’s original deal included a nine-month closing window. The company received early antitrust clearance on October 31.

The federal complaint claims Novo isn’t making a genuine acquisition attempt. Instead, Pfizer characterizes the bid as a strategy to block competition.

Court documents show Novo Nordisk offered $6.5 billion upfront before regulatory review. Pfizer says the deal includes restrictive terms that would slow clinical development.

Metsera is developing monthly injectable obesity drugs. Current market leaders Wegovy and Zepbound require weekly injections.

Analysts forecast the obesity drug market could reach $150 billion annually. Metsera’s experimental therapies could generate $5 billion in sales.

Both Sides Push Back Hard

Metsera accused Pfizer of manipulating the legal timeline. The biotech noted Pfizer knew about Novo’s bid on October 25 but delayed filing suit.

Novo Nordisk defended its position strongly. The company said it followed all restrictions in Pfizer’s merger agreement.

Novo said it would use its expertise to accelerate Metsera’s commercialization. The company positioned itself as the better partner for patients.

Market Reaction and Next Steps

Vice Chancellor Morgan Zurn scheduled a hearing for Tuesday morning. The session could determine which pharmaceutical giant wins control of Metsera.

Pfizer shares closed flat on Monday. Metsera stock fell 3.7% to $60.73.

Novo Nordisk shares dropped less than 1%. Pfizer’s antitrust review for its Metsera deal received early termination on October 31.

The Tuesday deadline puts pressure on Pfizer to either raise its bid or rely on the courts. Metsera’s board appears to favor Novo’s higher offer despite the litigation.

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