The Battle For Metsera Acquisition Heats Up As Pfizer Files A Second Lawsuit

• The new lawsuit alleges that Novo Nordisk’s proposed transaction violates several laws due to the anticompetitive effects it would have on the GLP-1 drug market.
• It further argues that Metsera’s controlling stockholders, including Validae Health, L.P., and Population Health Partners GP, have conspired with Metsera and Novo Nordisk to further these anticompetitive activities.
• Pfizer added that it intends to seek all appropriate remedies, including injunctive relief, to ensure that Novo Nordisk’s proposed transaction is not permitted to move forward.
   

Pfizer Inc. (PFE) on Monday announced that it has filed a second lawsuit against Metsera, Inc., its controlling stockholders, and Novo Nordisk A/S in the United States District Court for the District of Delaware.

The lawsuit alleges that Novo Nordisk’s recent proposal to acquire Metsera constitutes an anticompetitive action by the company to protect its dominant market position in GLP-1 drugs by capturing and killing a nascent American competitor before it gains the support of Pfizer.

What Does The New Lawsuit Say?

The new lawsuit alleges that Novo Nordisk’s proposed transaction violates several laws because of the anticompetitive effects it would have in the GLP-1 drug markets and negatively impact patients who suffer from obesity, diabetes, and other metabolic conditions. It further argues that Metsera’s controlling stockholders, including Validae Health, L.P., and Population Health Partners GP, have conspired with Metsera and Novo Nordisk to further these anticompetitive activities.

Pfizer further added that it intends to seek all appropriate remedies, including injunctive relief, to ensure that Novo Nordisk’s proposed transaction is not permitted to move forward.

“Metsera’s and its controlling stockholders’ actions, as well as those of Novo Nordisk, are in clear violation of the antitrust laws. We are confident in the merits of our case and look forward to presenting it to the Court,” the company said.

Pfizer also filed a separate lawsuit last week against Metsera, its Board of Directors, and Novo Nordisk in the Delaware Court of Chancery, asserting claims for breach of contract and fiduciary duty. It has also filed a motion with the Court of Chancery requesting that it issue a temporary restraining order to block Metsera from terminating the merger agreement with itself.  

What Sparked The Legal Battle?

Danish drugmaker Novo Nordisk (NVO) announced on Thursday that it has submitted an unsolicited proposal to acquire Metsera, Inc. (MTSR), following Pfizer's (PFE) agreement to acquire the smaller obesity biopharmaceutical company in September.

Metsera subsequently gave Pfizer four business days to negotiate potential adjustments to the existing transaction. The company also noted it would be entitled to terminate the Pfizer merger agreement if Novo’s proposal continues to constitute a superior proposal.

Pfizer, however, maintains that Novo's offer cannot be considered a superior proposal, given the significant regulatory risk, among other factors.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around MTSR stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘extremely high’ levels.

MTSR stock has more than doubled this year. 

Read also: Serina Therapeutics Stock Slumps Pre-Market After FDA Places Hold On Application To Initiate Clinical Trials For Experimental Therapy

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