Judge Denies Pfizer's Bid to Block Novo Nordisk's Offer for Metsera, Intensifying Pharmaceutical Bidding War

In a significant development in the ongoing pharmaceutical industry bidding war, a Delaware Chancery Court judge has rejected Pfizer's request to block Novo Nordisk's buyout bid for biotech company Metsera. This decision marks a crucial turning point in the high-stakes acquisition battle between two pharmaceutical giants.

Legal Ruling and Its Implications

Delaware Chancery Judge Morgan Zurn denied Pfizer's request for a temporary restraining order, stating that the company's objections to the proposed deal were not sufficient grounds to halt Novo's offer. This ruling comes as a setback for Pfizer, which had previously secured a buyout agreement with Metsera worth up to $7.3 billion in September.

Novo Nordisk, represented by Ambre James-Brown, Vice President of Global Media and Stakeholder Communications, welcomed the court's decision. "We agree with the court's decision to deny Pfizer's meritless claims and continue to believe our bid is in the best interest of the Metsera shareholders," James-Brown told Fierce Biotech.

However, Pfizer remains resolute in its position. In a statement, the company expressed confidence in the merits of its claims and its belief that Metsera is breaching contractual obligations. Pfizer stated, "Today's decision does not address the merits of the underlying legal issues raised, and Pfizer intends to continue to pursue its claims vigorously through the ongoing litigation process as well as in its parallel antitrust litigation pending in Delaware federal court."

Escalating Bids and Regulatory Concerns

The legal battle is set against a backdrop of rapidly escalating bids for Metsera. Novo Nordisk initially countered Pfizer's $7.3 billion offer with a bid of up to $9 billion. In response to this competition, both companies have since increased their offers:

• Novo Nordisk has raised its bid to a potential $10 billion
• Pfizer has increased its offer to up to $8.1 billion

These developments have caught the attention of regulatory bodies. A U.S. Federal Trade Commission official has raised concerns that Novo Nordisk's current deal proposal for Metsera may violate procedural laws governing mergers. This adds another layer of complexity to the ongoing acquisition process.

Despite the increased scrutiny, Metsera has indicated a preference for Novo Nordisk's proposal. In a press release on Tuesday, the biotech company stated that it viewed Novo's updated offer as "superior" to Pfizer's bid.

As this pharmaceutical industry drama unfolds, stakeholders are closely watching for further developments in this high-profile bidding war, which could have significant implications for the future landscape of drug development and corporate strategy in the sector.