BMO's Seigerman on Pfizer-Metsera deal: Bullish as we've waited on Pfizer's foray into obesity

Pfizer's Obesity Strategy - Beimo Capital Markets has a buy rating on Pfizer with a $30 price target, viewing Pfizer's entry into obesity treatment as a positive development [1] - Pfizer's portfolio includes once-monthly assets from Metera, differentiating it from competitors like Lily and Novo [2] - Pfizer's oral peptide offering does not require fasting, unlike oral semaglutide [3] Obesity Market Dynamics - The obesity drug market is expected to be large enough to accommodate multiple competitors [4] - The obesity market will be driven by volume rather than price, with pricing already facing pressure from Lily and Novo [5] - Success in the obesity market requires significant infrastructure buildout, including a large field force and complex contracts with payers [7] Novo Nordisk's Developments - Investors are becoming more bullish on Novo Nordisk due to data readouts from a recent diabetes meeting [8] - Investors see a valuation disconnect between Lily and Novo Nordisk, with Novo trading at a discount [9] - There is interest in Novo Nordisk's Evoke trial, which is studying oral semaglutide for Alzheimer's disease, with data expected in December [9][10]