This article first appeared on GuruFocus.
Novo Nordisk (NYSE:NVO) climbs about 2% on Monday afternoon after it says it will not raise its offer for Metsera (NASDAQ:MTSR), easing a weeks-long takeover tussle.
The move followed Pfizer’s (NYSE:PFE) prevailing in the bidding for Metsera, with a deal valued at roughly $10 billion and cash consideration around $86 a share, sources said.
Investors pushed Novo shares higher in premarket trade as the company stepped back from what had become an intense contest for the obesity-drug developer. The withdrawal removes near-term M&A uncertainty for Novo, which remains focused on its own GLP-1 programmes.
Metsera’s stock jumped as buyers reacted to the takeover outcome, while Pfizer moves to integrate the biotech’s pipeline of obesity and metabolic candidates. Analysts said the deal underscores how hot the obesity-treatment space has become.
Market watchers will be watching whether the settlement of the bidding war changes sentiment around Novo and its peers as competition in weight-loss drugs intensifies