Metsera acquisition of $ 4.9 billion in Pfizer positions it to become a major player in obesity drugs and more

PFIZER’s internal obesity R&D has tripped, but the pharmaceutical giant jumped in this area through the acquisition of several billion dollars in Metsera, a clinical stage company whose new generation metabolic drug pipeline could offer several points of differentiation in a crowded market of weight loss therapies.

The terms of the acquisition agreement announced the call on Pfizer on Monday to pay $ 47.50 in cash for each part of Metsera, evaluating biotechnology at around $ 4.9 billion. Pfizer could pay up to $ 22.50 more per share if Metsera medicines based in New York are reaching clinical and regulatory milestones.

Speaking at a conference on Monday, the head of the chief strategy of Pfizer and innovation, Andrew Baum, acknowledged that many successful obesity products were on the market, but he said that unsatisfied medical needs remained. He added that the association of obesity with other diseases means that Metsera pipeline offers the potential for expansion to other indications.

“We have evaluated several external opportunities in the obesity space and were exhaustive in our analysis and our diligence to ensure that we have identified the optimal opportunity which offers a convincing potential differentiation between the attributes of key assets,” said Baum.

The most advanced drug candidate Metsera, Met-097i, is a peptide designed to activate the GLP-1 receptor, putting it in the same class of drugs as Wegovy’s weekly injectables, Novo Nordisk and Zepbound, from Eli Lilly. While a phase 2 study is being evaluated from the 097i as a weekly injection, this medication was designed with proprietary technology giving the molecule a longer half-life to support a longer dosage interval. A separate mid-term study is under monthly test.

In addition to reducing the dosage load for patients, the monthly dosage offers manufacturing advantages by reducing the number of required injectors devices, leading to cost and supply chain advantages compared to weekly injectable products. The preliminary results for weekly and monthly dosages are expected in 2026, according to a presentation of Pfizer investors. Metsera targets an even less frequent dosage. An injectable GLP-1 candidate with the potential for the dosage of every two months is currently in preclinical development.

Pharmaceutical societies are also trying to extend metabolic drugs to new targets, such as the Amylin receiver. Novo Nordisk has two clinical programs addressing Amylin. This objective also aroused the interest of Abbvie and Roche, each having concluded agreements this year to add Amylin targeting programs to their pipelines. Metsera’s Amylin Contender, Met-233i, currently in clinical development of phase 1. Metsera managers said that this drug had the best class potential, a feeling resolved on Monday by Pfizer leaders. Phase 1 preliminary data was presented last week at the annual meeting of the European Association for the study of diabetes. A separate phase 1 test is being assess the combination of Met-233i and MET097I.

The Metsera pipeline also includes pills, which is important because research on obesity drugs pursues more practical dosage options which could serve as alternatives to injections for initial treatment or as maintenance therapies after patients have reached target weight loss with an injectable drug. Metsera has oral candidates GLP-1 and Amyline in drugs in preclinical development.

Pfizer had previously identified oral drugs as a way to differentiate and compete with injectable obesity drugs. But in 2023, the company interrupted the development of the Lotiglipron of drugs GLP-1 oral after a security signal emerged during phase 1 tests. The company then turned to another Oral GLP-1 medication, Danuglipron. This medication has reached a statistically significant weight loss in mid-term tests, but these results also showed that many patients had trouble sticking to their dosage twice a day. The development by Pfizer of Danuglipron oral once a day ended in May after a sign of potential liver damage induced by the drug emerged during phase 1 tests.

Leerink Partners plans that Metsera’s medicines could reach 5 billion dollars in combined peak sales. In a research note of September 9, analyst David Risisiner wrote that data so far for monthly Metsera Metsera Metsera Metsera program injections suggest equivalent efficiency to weekly injections of Zepbound in Lilly and potentially tolerability. In addition, the development of this weekly injection for initial titration should give advantages of tolerability compared to competitors and also offer maximum flexibility for patients who wish to dose a weekly dose or restart the therapy risking.

Metsera’s Amylin candidate also offers the monthly dosage potential, said risinger. He added that the Oral GLP-1 oral drug of the company could offer better efficiency and tolerability than Lilly’s Oral GLP-1 agonist, Orforglipron, who is on the right track for a submission of the FDA.

There is another potential competitive advantage for the combination of Metsera de Met-233i and Met097i, which, according to society, will be assessed as a biological medication. Risinger said Metsera’s management noted that a peptide sequence of more than 40 amino acids would be eligible to be examined under a biological license (Bla), as opposed to the new drug application (NDA) used for the semaglutide of Novo (Wegovy) and Lilly (Zepbound). The classification as a biological would also offer Metsera drug combo against compounds. Food Drug & Cosmetics Act makes biological composition inadmissible.

“We consider this as an attractive differentiation of shooting and semaglutide, which has undergone a process of examining the NDA, in particular given the favorable positioning for [Inflation Reduction Act] Negotiations for the Bla on NDA (13 years old against 9 years, respectively) “, wrote risinger.” Met-097i can also be protected against the composition of the FDA that the FDA indicates that “biological products are not eligible for exemptions for drugs composed under articles 503a and 503b of FD & C Act.”

The $ 47.40 per share that Pfizer agreed to pay represent a bonus of 42.5% at the closing price of Put on Friday. Metsera’s IPO at the start of this year was at a price of $ 18 per share. Metsera shareholders could receive more realization of clinical and regulatory stages. A contingent value in the agreement will pay $ 5 per additional share after the combination of Met-097i and Met-233i begins a clinical trial of phase 3. $ 7 of $ 7 per share will be paid during the approval of the FDA of the Met-097i monthly in monotherapy; $ 10.50 per share are linked to the FDA approval of the Met-097i and Met-233i combination.

The boards of directors of the two companies approved the acquisition, which still needs the approval of Metsera shareholders as well as regulatory approvals. The agreement should conclude in the fourth quarter of this year.

Photo: Dominick Reuter / AFP, via Getty Images