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Pfizer Discusses Drug Pricing Deal, Metsera Buyout Dispute on Q3 Call
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Key Takeaways
Pfizer's $7.3B Metsera buyout faces a higher competing offer from Novo Nordisk.
PFE has sued Metsera and Novo Nordisk over alleged breach of the merger agreement.
Pfizer's new drug pricing deal with the Trump administration provides long-term clarity.
On its third-quarter conference call held on Nov. 4, Pfizer (PFE - Free Report) shed light on the two topics for which it has been in the news lately — the drug pricing deal with the Trump administration and the battle with Novo Nordisk (NVO - Free Report) related to the Metsera (MTSR - Free Report) buyout.
Pfizer’s Metsera Buyout in Jeopardy?
Pfizer is locked in a fierce battle with Novo Nordisk relating to its offer to buy obesity drug developer, Metsera. In September, Pfizer announced a definitive agreement to acquire Metsera for around $7.3 billion (including cash and contingent value rights) to re-enter the lucrative obesity space after it scrapped the development of danuglipron, a weight-loss pill, earlier this year.
Incidentally, Novo Nordisk, which holds a strong position in the obesity space, submitted an unsolicited proposal to acquire Metsera for around $9 billion (including cash and contingent value rights). As the obesity battle intensified, NVO increased its offer price for Metsera to a total value of around $10 billion, which Metsera said was a superior proposal to a revised Pfizer proposal of approximately $8.1 billion.
Pfizer filed a lawsuit against Metsera, Novo Nordisk A/S and several related parties for the breach of the merger agreement. Pfizer claimed Metsera violated its contractual obligations by pursuing Novo Nordisk’s competing offer. It argues that NVO’s offer cannot qualify as a superior proposal under the merger terms because it violates antitrust law and poses significant regulatory risks. In the lawsuit, Pfizer also sought a temporary restraining order to prevent Metsera from terminating the merger agreement. However, the court denied Pfizer’s request for a temporary restraining order.
Pfizer also filed a second lawsuit against Metsera and its directors and Novo Nordisk in a district court in Delaware, calling out NVO’s proposal to buy Metsera an anticompetitive action to maintain its dominance in the GLP-1 drug market by eliminating a potential American rival. Metsera, in response, said it will address Pfizer’s allegations in court and that the latter is trying to acquire it for a lower price than NVO through such legal actions.
In October 2025, the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Act with respect to Pfizer’s pending acquisition of Metsera. Pfizer said this cleared the path to completing the Metsera buyout.
On the call, Pfizer expressed confidence that the Pfizer-Metsera combination will create substantial value for shareholders and advance innovation. Pfizer said that the deal will have no impact on its 2025 guidance but should be dilutive to its 2026 EPS. Pfizer expects the deal to be approximately 16 cents dilutive to 2026 adjusted EPS and remain dilutive through 2030.
However, the outcome of the Metsera deal is currently uncertain with the picture changing everyday with counter offers and litigation. NVO has challenged Pfizer to raise its bid. The final decision should come soon and Metsera will probably pick the company that pays more as negotiations continue.
Landmark Drug Pricing Deal With Government Removes Uncertainty
In September, Pfizer signed a drug pricing agreement with the Trump administration. Pfizer has offered to cut prescription drug prices and align prices with those in other developed countries. Pfizer also agreed to boost domestic investments in exchange for a three-year exemption from tariffs on pharmaceutical imports. On the call, Pfizer said that this landmark agreement with the U.S. government was an important milestone as it provides longer-term clarity on the company’s strategic investment in future innovation and growth.
AstraZeneca (AZN - Free Report) also signed a similar deal with the Trump administration. The deals between PFE and AZN and the Trump administration have raised hopes of a sustainable sector recovery, with the President offering to hold off the tariffs on pharmaceutical imports to sign similar deals with other drugmakers.
PFE’s Price Performance, Valuation and Estimates
Pfizer’s stock has declined 6.3% so far this year against an increase of 7.1% for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its 5-year mean. Going by the price/earnings ratio, the company’s shares currently trade at 8.0 forward earnings, lower than 15.69 for the industry and the stock’s 5-year mean of 10.52.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 earnings has risen from $3.05 per share to $3.11 per share, while that for 2026 has risen from $3.12 per share to $3.14 per share over the past seven days.
Image: Bigstock
Pfizer Discusses Drug Pricing Deal, Metsera Buyout Dispute on Q3 Call
Key Takeaways
On its third-quarter conference call held on Nov. 4, Pfizer (PFE - Free Report) shed light on the two topics for which it has been in the news lately — the drug pricing deal with the Trump administration and the battle with Novo Nordisk (NVO - Free Report) related to the Metsera (MTSR - Free Report) buyout.
Pfizer’s Metsera Buyout in Jeopardy?
Pfizer is locked in a fierce battle with Novo Nordisk relating to its offer to buy obesity drug developer, Metsera. In September, Pfizer announced a definitive agreement to acquire Metsera for around $7.3 billion (including cash and contingent value rights) to re-enter the lucrative obesity space after it scrapped the development of danuglipron, a weight-loss pill, earlier this year.
Incidentally, Novo Nordisk, which holds a strong position in the obesity space, submitted an unsolicited proposal to acquire Metsera for around $9 billion (including cash and contingent value rights). As the obesity battle intensified, NVO increased its offer price for Metsera to a total value of around $10 billion, which Metsera said was a superior proposal to a revised Pfizer proposal of approximately $8.1 billion.
Pfizer filed a lawsuit against Metsera, Novo Nordisk A/S and several related parties for the breach of the merger agreement. Pfizer claimed Metsera violated its contractual obligations by pursuing Novo Nordisk’s competing offer. It argues that NVO’s offer cannot qualify as a superior proposal under the merger terms because it violates antitrust law and poses significant regulatory risks. In the lawsuit, Pfizer also sought a temporary restraining order to prevent Metsera from terminating the merger agreement. However, the court denied Pfizer’s request for a temporary restraining order.
Pfizer also filed a second lawsuit against Metsera and its directors and Novo Nordisk in a district court in Delaware, calling out NVO’s proposal to buy Metsera an anticompetitive action to maintain its dominance in the GLP-1 drug market by eliminating a potential American rival. Metsera, in response, said it will address Pfizer’s allegations in court and that the latter is trying to acquire it for a lower price than NVO through such legal actions.
In October 2025, the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Act with respect to Pfizer’s pending acquisition of Metsera. Pfizer said this cleared the path to completing the Metsera buyout.
On the call, Pfizer expressed confidence that the Pfizer-Metsera combination will create substantial value for shareholders and advance innovation. Pfizer said that the deal will have no impact on its 2025 guidance but should be dilutive to its 2026 EPS. Pfizer expects the deal to be approximately 16 cents dilutive to 2026 adjusted EPS and remain dilutive through 2030.
However, the outcome of the Metsera deal is currently uncertain with the picture changing everyday with counter offers and litigation. NVO has challenged Pfizer to raise its bid. The final decision should come soon and Metsera will probably pick the company that pays more as negotiations continue.
Landmark Drug Pricing Deal With Government Removes Uncertainty
In September, Pfizer signed a drug pricing agreement with the Trump administration. Pfizer has offered to cut prescription drug prices and align prices with those in other developed countries. Pfizer also agreed to boost domestic investments in exchange for a three-year exemption from tariffs on pharmaceutical imports. On the call, Pfizer said that this landmark agreement with the U.S. government was an important milestone as it provides longer-term clarity on the company’s strategic investment in future innovation and growth.
AstraZeneca (AZN - Free Report) also signed a similar deal with the Trump administration. The deals between PFE and AZN and the Trump administration have raised hopes of a sustainable sector recovery, with the President offering to hold off the tariffs on pharmaceutical imports to sign similar deals with other drugmakers.
PFE’s Price Performance, Valuation and Estimates
Pfizer’s stock has declined 6.3% so far this year against an increase of 7.1% for the industry.
From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its 5-year mean. Going by the price/earnings ratio, the company’s shares currently trade at 8.0 forward earnings, lower than 15.69 for the industry and the stock’s 5-year mean of 10.52.
The Zacks Consensus Estimate for 2025 earnings has risen from $3.05 per share to $3.11 per share, while that for 2026 has risen from $3.12 per share to $3.14 per share over the past seven days.
Pfizer has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.