The news: Pfizer has agreed to pay as much as $7.3 billion to acquire anti-obesity drugmaker Metsera.

Why it matters: Pharma companies want a piece of the lucrative weight loss drug market, which Novo Nordisk and Eli Lilly currently corner.

Pfizer’s acquisition comes after multiple failed efforts to penetrate the weight loss drug space.

• The company earlier this year ended development of its once-daily weight loss pill, danuglipron, after a trial participant experienced a liver injury that the drug may have caused.
• Pfizer also discontinued a twice-daily oral candidate in 2023 due to tolerability issues experienced by clinical trial patients.

Pfizer said that acquiring Metsera will add four clinical-stage programs to its pipeline, including oral and injectable candidates. Among the targets that Metsera scooped up through licensing and acquisition deals are GLP-1 drugs and an alternative hormone called amylin that may have fewer gastrointestinal side effects than GLP-1s.

Our first take: Pfizer has struggled to convince investors of a strategic vision following waning demand in its COVID-19 treatments. The company recognizes it must be present in the fast-growing obesity drug market and is buying its way in after unsuccessful attempts at internal development. But Pfizer is playing catch-up to Novo, Lilly, and several other players with obesity treatments in the pipeline.

This is our immediate perspective. We’re actively developing this story throughout the day with more research and data from the EMARKETER database. Our in-depth analysis will be included in our client-only Briefings. Non-clients can click here to get a demo of our full platform and coverage.

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