Pfizer Stock Rises on $4.9B Metsera Deal to Enter Obesity Market
The acquisition gives Pfizer a next-generation pipeline of weight-loss drugs to challenge market leaders Eli Lilly and Novo Nordisk.
Pfizer (PFE) shares climbed 1.54% in pre-market trading after the pharmaceutical giant announced a , a clinical-stage company specializing in obesity and metabolic diseases, for $4.9 billion in cash.
The deal, which includes a potential for $2.4 billion in additional milestone payments, marks Pfizer's aggressive re-entry into the highly competitive and rapidly expanding market for weight-loss drugs. This strategic move follows previous setbacks in Pfizer's internal development programs and signals a renewed commitment to capturing a share of this lucrative sector.
The acquisition provides Pfizer with a portfolio of next-generation obesity treatments, including promising oral and injectable candidates. This is particularly crucial as the company aims to compete with the dominant market players, Novo Nordisk and Eli Lilly, whose GLP-1 drugs Wegovy and Zepbound have become blockbuster successes. Metsera's pipeline is seen as a key asset after Pfizer previously .
Pfizer's investment underscores the immense potential of the anti-obesity medication market, which some analysts project could reach . The deal was unanimously approved by the boards of both companies and is expected to close in late 2025.
With this multi-billion dollar bet, Pfizer is positioning itself to challenge the current duopoly in the weight-loss space. Investors will be closely watching whether Metsera's innovative pipeline can help the pharmaceutical giant effectively compete and deliver a new generation of treatments for a global health condition affecting hundreds of millions of people.