A bitter takeover battle has erupted in the fat jab market after Danish drug giant Novo Nordisk gatecrashed a takeover deal by its US rival Pfizer.
Novo muscled in with a £6.8billion offer for American weight-loss drug group Metsera, outbidding Pfizer, which had struck a £5.5billion deal last month.
That prompted a furious response from Pfizer, which accused the Danish firm of ‘reckless’ behaviour and threatened legal action.
Novo’s dramatic move marks a stark change in strategy for the company, the maker of drugs including Ozempic and Wegovy, which has traditionally shied away from dealmaking.
It said a takeover of Metsera was in line with plans to develop ‘innovative and differentiated medicines and treating millions more people living with obesity and diabetes’.
Pfizer accused Novo of using its ‘dominant market position to suppress competition in violation of law by taking over an emerging US challenger’.
Fat jab row: Ozempic and Wegovy-maker Novo Nordisk has gatecrashed a takeover deal by its US rival Pfizer
‘The proposal is illusory and cannot qualify as a superior proposal under Pfizer’s agreement with Metsera, and Pfizer is prepared to pursue all legal avenues to enforce its rights under its agreement,’ it said.
But Metsera’s bosses said the Danish group’s proposal was ‘superior’ and Pfizer now had four days to come up with a better offer.
Metsera, based in New York, is developing four weight-loss medications including a monthly jab and pill. Its shares soared 22 per cent on Wall Street while Novo fell 3.6 per cent. Pfizer shares closed flat.
The Danish firm’s swoop comes as it tries to regain momentum in the fat jab market after its shares have fallen nearly 50 per cent this year.
The move is an aggressive turn under its new boss Maziar Mike Doustdar, who took over in August after his predecessor Lars Fruergaard Jorgensen was asked to step down by investors following mounting concerns about performance.
Doustdar, whose first role at Novo Nordisk was working a summer job in its mailroom, has announced thousands of job cuts and this month struck a £4billion deal to buy San Francisco drug firm Akero Therapeutics, which is developing a drug that could treat a liver condition known as MASH, a common complication of obesity.
Despite being the first company to market a fat jab, Novo is under intense pressure from US competitors who have steadily eaten away at its market share and profits.
Yesterday, pharma giant Eli Lilly, maker of rival weight-loss drug Mounjaro, upgraded its sales forecasts as it pulled ahead in the fiercely competitive market.
Paul Major, a portfolio manager at Bellevue Asset Management, said Metsera’s once-monthly obesity drug candidate was ‘a point of differentiation’ that Novo did not have and could help it better compete with Lilly.
Markus Manns, a portfolio manager at mutual fund and Novo shareholder Union Investment, said: ‘The deal would certainly help Novo improve its market position in obesity, assuming the products can be developed successfully.’
But he added that it could also raise competition concerns and prompt a counter-offer from Pfizer.
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