A premium of 43%! Pfizer Inc. (PFE.US) splurges $4.9 billion to acquire Metsera (MTSR.US), ramping up its presence in the weight loss drug market.

Pfizer Inc. (PFE.US) has agreed to acquire the obesity drug development startup company Metsera (MTSR.US) for an enterprise value of approximately $4.9 billion, aiming to strengthen its research and development pipeline. Previously, the company faced setbacks in the development of a key weight-loss drug. The American pharmaceutical company stated in a press release on Monday that it will acquire Metsera for $47.50 per share in cash, with an additional payment of up to $22.50 per share if three specific regulatory milestones are met. The deal represents a 43% premium over Metsera's closing price last Friday. As of the time of writing, Metsera's stock is up 59.72% in premarket trading, at $53.22. After the COVID-19 pandemic, Pfizer Inc. is focusing on restructuring its business and is looking to unvalidated new drug development pipelines to replace its aging products. As one of the promising companies in the next generation of obesity drug development, Metsera is developing several experimental weight-loss drugs, including an injectable with a potentially lower dosing frequency than market-leading products like Wegovy and Zepbound. The drug MET-233i developed by the company helped patients lose up to 8.4% of their weight in a recent study conducted over 36 days. The drug is still in the early stages of development, meaning it will take several years before it can be brought to market. Michael Shah from Bloomberg Industry Research stated that MET-233i "may become the best drug in the obesity treatment field with the most potential."