Novo Nordisk's Bold Bid for Metsera: A $10 Billion Gamble

Novo Nordisk's CEO Mike Doustdar made a daring $10 billion bid for Metsera to assert dominance in the obesity drugs market, only to be outbid by Pfizer. Doustdar's strategy demonstrated Novo's aggressive new approach amid increasing competition and market pressures from rival Eli Lilly.

In a high-stakes move to consolidate its position in the obesity drug market, Novo Nordisk's CEO Mike Doustdar made an unexpected $10 billion bid for Metsera. Despite knowing that Metsera had already accepted a $7.3 billion bid from Pfizer, Doustdar was determined not to let go of the promising company, as revealed by U.S. securities filings and court documents.

The proposed deal involved an upfront multi-billion-dollar payment for a stake in Metsera, though it risked lacking full control if met with antitrust opposition. This aggressive strategy prompted Pfizer to counter with a higher offer, leaving Novo out of the race. Analysts were divided; some praised Novo's newfound urgency, while others cautioned against overreach as the company deals with governance issues and the dominance of competitor Eli Lilly in the U.S. market.

The bid was Doustdar's attempt to ensure competitive parity in a potential $150 billion market, emphasizing the urgent need for acquisition to supplement Novo's experimental drug pipeline. Despite confidence in gaining U.S. Federal Trade Commission clearance, the plan was thwarted when antitrust concerns arose, resulting in Novo's withdrawal from the bid.

(With inputs from agencies.)