By Mrinalika Roy and Christy Santhosh
(Reuters) -Pfizer and Novo Nordisk’s fight for obesity drug developer Metsera ratcheted up on Tuesday as both companies submitted sweetened bids, with Metsera saying Novo’s $10 billion offer is superior.
Pfizer, which also raised its full-year profit forecast on Tuesday, is now offering up to $8.1 billion. The New York-based drugmaker now has two business days during which it may negotiate with Metsera to amend the agreement’s terms and conditions.
For Pfizer, the deal represents a strategic push into the obesity treatment market that some analysts estimate will reach $150 billion by the early 2030s, following in-house failures in that effort. The company is also grappling with declining sales of COVID-19 products and big-selling medicines facing looming patent expirations.
Last month, Novo Nordisk launched an unsolicited, higher bid for Metsera, which had already agreed to be acquired by Pfizer in September in a deal valued at up to $7.3 billion.
Novo, once dominant in the weight-loss market, has come under intense pressure from rival Eli Lilly, whose Zepbound had overtaken the Danish drugmaker’s Wegovy.
Pfizer shares were up 1% in early trading, while Metsera jumped 16% to $70.30.
Pfizer has filed two lawsuits against Metsera, its board, and Novo Nordisk.
The first lawsuit, filed on Friday, claims Novo’s bid breaches Pfizer’s merger agreement and seeks to bypass antitrust review. Pfizer is asking a court to block Metsera from terminating their agreement, with a hearing set for later on Tuesday.
The second lawsuit alleges the proposed deal would stifle competition in GLP-1 drug markets, amounting to monopolization and conspiracy under U.S. antitrust law. Novo has rejected Pfizer’s allegations and said it closely adhered to all of the restrictions under the Pfizer merger agreement.
UPBEAT RESULTS
Pfizer raised its 2025 profit forecast for the second consecutive quarter and now expects to earn $3.00 to $3.15 per share, up from its prior view of $2.90 to $3.10, with analysts estimating $3.04, according to LSEG data.
Pfizer also reported adjusted third-quarter earnings of 87 cents per share, topping analysts’ expectations by 24 cents.
The quarterly results were supported by CEO Albert Bourla’s cost-cutting initiatives, new product launches and stable demand for established drugs that helped offset declining sales of COVID products, which are generating only a fraction of their pandemic-era revenue.Â
Paxlovid sales fell 55%, while sales of Comirnaty, the vaccine it shares with BioNTech, were down 20%, largely due to lower infection rates and a narrower COVID-19 vaccine recommendation in the U.S. that reduced the eligible population.
Strength across Pfizer’s commercial business and continued progress in cost-saving efforts likely drive sentiment into the end of the year, said BMO Capital Markets analyst Evan Seigerman.
Pfizer last month became the first major pharmaceutical company to sign a deal with the Trump administration to lower the price of its prescription drugs in the government Medicaid program in exchange for three years of tariff relief.
Bourla said the deal will provide “greater clarity” to its business.
Sales of blood thinner Eliquis, which Pfizer shares with Bristol Myers Squibb, rose 22% to $2.02 billion in the third quarter, while sales of heart disease drug, sold under the brand names Vyndaqel and Vyndamax, rose 7% to $1.59 billion.
Total sales for the quarter fell 6% to $16.65 billion, but beat analysts’ average expectation of $16.58 billion.
(Reporting by Mrinalika Roy and Christy Santhosh in Bengaluru; Editing by Bill Berkrot)
