Pfizer ramps up obesity treatments push with 4.9 billion dollar deal for Metsera

Pfizer is doubling down on obesity treatments by spending 4.9 billion US dollars (£3.6 billion) on the development-stage drugmaker Metsera.

The Covid-19 vaccine and treatment maker said on Monday that it will pay 47.50 dollars (£35.20) per share in cash for each Metsera share.

That represents a premium of more than 42% on Metsera’s closing price on Friday.

Pfizer also could pay an additional 22.50 dollars (£16.67) per share depending on how Metsera’s product pipeline develops.

Metsera has no products on the market, but its pipeline includes four programmes in clinical development and one in mid-stage testing.

Demand for obesity treatments has soared in recent years, fuelled by market leaders Zepbound from Eli Lilly and Wegovy from Novo Nordisk.

Pfizer currently has no obesity treatments on the market but has some in clinical development.

Earlier this year, the company said it was ending development of a potential once-daily pill treatment before it started late-stage testing, the biggest and most expensive phase of clinical development.

Shares in Pfizer, based in New York, climbed 31 cents to 24.33 dollars (£18.02) before markets opened on Monday, while Metsera’s stock advanced about 60%.