In a strategic move to secure a foothold in the high-stakes obesity pharmaceutical market, Pfizer Inc. has announced a definitive agreement to acquire the clinical-stage biotech company Metsera.

The transaction, valued at up to $7.3 billion, signals Pfizer’s aggressive intent to compete with established leaders in the lucrative weight-loss drug sector.

This acquisition provides Pfizer with a promising pipeline of metabolic treatments, potentially accelerating its entry into a market projected to be worth over $100 billion.

The agreement includes an upfront cash payment of $47.50 per share, representing a significant 43% premium over Metsera’s recent closing price. This initial component values the enterprise at approximately $4.9 billion.

Furthermore, the deal structure includes substantial additional incentives for Metsera shareholders through a contingent value right. This right could yield up to an extra $22.50 per share, tied to the successful achievement of key clinical development and regulatory milestones for Metsera’s investigational therapies.

Investors reacted positively to the news, sending Metsera’s stock soaring over 60% in premarket activity. Pfizer’s shares also saw a modest uptick, reflecting market optimism about the company’s strategic direction.

The transaction, which has been approved by the boards of both companies, is anticipated to be finalized by the end of 2024. This acquisition is widely seen as a crucial step for Pfizer to diversify its portfolio beyond its COVID-19 products and anchor its future growth in the rapidly expanding field of metabolic diseases.