FTC signals scrutiny of Novo’s bid for Metsera

Core Insights - Novo Nordisk's bid to acquire Metsera is valued at $10 billion, significantly higher than Pfizer's $2 billion offer, making it appear more attractive on the surface [3] - The Federal Trade Commission (FTC) has raised concerns regarding the structure of Novo's deal, which could potentially violate federal law related to premerger reviews [7][6] - Pfizer argues that Novo's acquisition could lead to monopolization in the obesity drug market, while a Delaware court has denied Pfizer's request to block the deal [7][4] Group 1: Acquisition Details - Novo's offer includes a large upfront payment for half of Metsera's shares, with the remainder to be paid later, raising regulatory concerns [5][6] - The acquisition would allow Novo to gain up to eight additional weight loss candidates, enhancing its portfolio in the obesity drug market [4] Group 2: Regulatory Concerns - The FTC's letter indicates that Novo's deal structure may allow the companies to bypass premerger review, potentially leading to anticompetitive effects [7][6] - The FTC has not taken a definitive stance on the legality of the deal but has expressed concerns about the implications of proceeding without proper review [7]