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Novo Nordisk and Pfizer have submitted improved gives for US weight reduction start-up Metsera, however the coveted biotech continues to view Novo’s bid because the “superior” choice because the takeover battle escalates.
Novo’s proposal now values the biotech at as much as $10bn, up from an earlier provide of as a lot as $9bn. Beneath the brand new proposal, Novo has supplied to pay Metsera $62.20 a share upfront in money nearly instantly upon signing, in alternate for a 50 per cent non-voting stake, which converts to a controlling shareholding upon closure. An extra $24 a share might be paid additional down the road based mostly on the corporate attaining medical trial milestones.
Novo beforehand supplied $56.50 a share upfront and an extra $21.25 based mostly on medical trial objectives being achieved.
The battle pits in opposition to one another two massive pharma corporations keen to enhance their place within the rising weight problems market. Pfizer is attempting to enter the market, whereas Novo, which makes Wegovy and Ozempic, is attempting to spice up its pipeline after dropping floor to Eli Lilly.
The weird construction of Novo’s provide is designed to make sure buyers obtain the vast majority of the money earlier than the deal undergoes full regulatory scrutiny.
In a press release, the Danish firm mentioned: “Novo Nordisk believes that the proposal, together with the construction of the transaction, complies with all relevant legal guidelines and is in one of the best curiosity of sufferers who will profit from our dedication to innovation, in addition to Metsera’s shareholders. This provide highlights Novo Nordisk’s dedication to investing within the US and curiosity in persevering with to develop the size of its US investments.”
Pfizer had additionally improved its provide, valuing the corporate at $8.1bn or as much as $70 a share, up from an earlier bid of as much as $7.3bn. The US drugmaker and Metsera have two extra enterprise days to proceed negotiations.
The newest spherical of bids provides drama to essentially the most contentious takeover battle for a biotech the sector has ever witnessed, during which Pfizer has tried to exert stress on its Danish rival by means of a volley of lawsuits.
The Monetary Occasions reported earlier on Tuesday that Novo and Pfizer had supplied to sweeten their bids.
Final week, Novo got here in excessive of an authentic Pfizer cope with Metsera with a proposal of as much as $9bn, sparking one of the contentious bidding wars over a biotech in current reminiscence.
Pfizer has accused Novo of attempting to stifle competitors and sued the Danish drugmaker and Metsera to attempt to block the deal. Its complaints have centred on the construction of Novo’s provide to pay Metsera nearly instantly upon signing — a manoeuvre Pfizer referred to as “an old school bribe”.
The US pharmaceutical firm labelled Novo’s provide final week as “reckless and unprecedented”, saying it was “an try by an organization with a dominant market place to suppress competitors in violation of legislation by taking on an rising American challenger”.
This story has been up to date to appropriate the worth of Novo Nordisk’s authentic contingent secondary provide for Metsera
