(Reuters) -Pfizer said on Monday it would acquire weight-loss drug developer Metsera in a deal valued up to $7.3 billion, which includes future payments, to secure its position in the lucrative obesity treatment market.
The U.S. obesity drug market has been booming over the last few years thanks to highly effective incretin drugs from the likes of Novo Nordisk and Eli Lilly — both of which are vying for the top spot. The market is large and still rapidly growing, but payer coverage, cost, supply and regulatory questions will shape how big it ultimately becomes.
The deal is Pfizer’s latest bid to secure a foothold in the obesity treatment market, following setbacks in its own development efforts with weight-loss pill danuglipron.
Pfizer would pay $47.50 per share in cash, representing a premium of about 43% to New York-based Metsera’s last close.
Metsera is also eligible to receive an additional $22.50 per share contingent on the achievement of certain performance milestones. Its shares surged 56% in premarket trading.
The Financial Times had reported on the deal on Sunday.
(Reporting by Mrinmay Dey and Mariam Sunny in Bengaluru; Editing by Janane Venkatraman, Mrigank Dhaniwala and Shilpi Majumdar)
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