Pfizer is losing its fight with Novo Nordisk to get back in the obesity-drug game

By Tomi Kilgore

The drugmaker reported revenue that fell from a year ago amid slumping sales of COVID vaccines and treatments, but still topped expectations

Pfizer's buyout bid for Metsera was deemed inferior to the latest bid from Novo Nordisk, putting the original agreement in doubt despite legal efforts to enforce it.

Pfizer Inc. took a bit of a gut punch Tuesday after its merger partner Metsera Inc. - considered Pfizer's way back into the weight-loss-drug game - deemed the drug giant's buyout bid inferior to the latest one from rival Novo Nordisk A/S.

But Pfizer (PFE) isn't going down without a fight. While Novo Nordisk's (NVO) bid could top Pfizer's by up to $2.7 billion, Pfizer Chief Executive Albert Bourla called it "illusory" and said it can't be considered "superior" because there is higher regulatory risk that it will be blocked by regulators on antitrust grounds.

Bourla's comments came during Pfizer's conference call with analysts that followed the release of the company's third-quarter earnings report, and marked the latest salvo in the escalating fight for Metsera (MTSR).

In late October, Novo Nordisk launched a hostile bid for Metsera that was valued at up to $1.7 billion more than the already agreed-upon deal between Metsera and Pfizer. The next day, it was reported that Pfizer sued Metsera and Novo Nordisk to try to keep Metsera from terminating the original agreement.

On Monday, while Pfizer didn't increase the total value of its buyout bid of up to $70 a share, it did bump the up-front cash portion to $60 a share, from $47.50 a share, while lowering the amount payable if certain development and regulatory milestones were met to $10 a share, from $22.50 a share. The deal valued Metsera at up to $7.35 billion.

Then, on Tuesday, Novo Nordisk swooped in with a higher bid of $62.20 per share in cash up front, plus a contingent payment of up to $24 a share. All in, that could value Metsera at up to $10 billion.

Metsera deemed that new bid to be a "superior company proposal" to Pfizer's, which now has two days to negotiate potential adjustments to its own bid.

Pfizer's Bourla said that given pending legal actions to "enforce Pfizer's rights," he can't say much more about the deal.

"What I can say is that our belief in the promise of the Pfizer and Metsera combination is strong and unwavering," Bourla said. "We are confident it will create substantial value for shareholders and advance innovation to bring important medicines to patients in the high-growth therapeutic area of obesity."

Keep in mind that Pfizer's fight for Metsera comes after Pfizer had discontinued development of its own obesity treatments amid safety concerns, and as revenue and the stock has been falling as demand for its COVID-19 vaccines and treatments have dropped.

Pfizer's stock declined 1.5% in recent afternoon trading. It has lost 8.5% in 2025, and has tumbled more than 60% since closing at a record $61.25 on Dec. 16, 2021. But the stock has gained around 2% since the company announced on Sept. 30 a "voluntary" agreement with the Trump administration to lower drug prices and participate in TrumpRx.gov, the government's direct drug-purchasing platform.

Novo Nordisk's stock fell 2.2% in recent trading, while Metsera shares soared 20.7%. Metsera shares were trading above Pfizer's bid of up to $70 a share, meaning investors have priced some possibility that the current agreement will be terminated, but they were still well below Novo Nordisk's bid of up to $86.20 a share.

On Tuesday, the company reported overall third-quarter revenue that was down 5.9% from a year ago to $16.65 billion, as sales of COVID treatment Paxlovid sank 55% and sales of COVID vaccine Comirnaty slumped 20%. In comparison, quarterly sales had peaked at a record $27.74 billion in the second quarter of 2022.

Meanwhile, sales of Pfizer's current top-selling blood-clot medication Eliquis increased 22% to $2.02 billion, above the average analyst estimate compiled by FactSet of $1.85 billion.

"I am proud of Pfizer's leadership as the first in our industry to reach an agreement with the U.S. government, which we believe provides greater clarity for our business," said Bourla.

Separately, Pfizer reported third-quarter net income that fell 20.7% to $3.54 billion. Adjusted earnings per share, which excludes nonrecurring items, declined to 87 cents from $1.06, but were above the FactSet consensus of 63 cents.

Looking ahead, the company kept its revenue outlook intact at $61 billion to $64 billion but raised its adjusted EPS guidance range to $3 to $3.15, from $2.90 to $3.10.

-Tomi Kilgore

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11-04-25 1354ET