Shares of Novo Nordisk climbed 2.6% on Monday after the Danish drugmaker officially withdrew from the $10 billion battle for U.S. biotech Metsera, losing out to Pfizer.
Investors welcomed the move, viewing Novo’s earlier offer as overly complex and high-risk.
🔹 Why It Matters
Novo’s withdrawal brings relief to shareholders concerned about:
- The unorthodox structure of its bid — billions in upfront cash for non-voting shares tied to future antitrust approval.
- Growing antitrust scrutiny, after the U.S. Federal Trade Commission flagged potential violations.
- The perception that the deal had become a distraction amid intensifying competition with Eli Lilly in the global obesity drug market.
“Although Metsera is undoubtedly an attractive asset, I’m quite pleased this is over — it had become a distraction,”
said Simon Baker, analyst at Rothschild & Co Redburn.
🔹 Governance Under the Microscope
Novo now faces fresh attention over its internal governance as it prepares for Friday’s extraordinary shareholder meeting.
The Novo Nordisk Foundation, controlling 77% of voting rights, plans to appoint Lars Rebien Sørensen (its own chair) as chair of Novo Nordisk — a dual role that has raised investor unease.
Norway’s Norges Bank Investment Management (NBIM) — the world’s largest sovereign wealth fund and Novo’s third-largest shareholder — said it will abstain from voting, signaling governance concerns.
🔹 Market Context
- Novo shares remain down over 70% since June 2024, trading near 2021 levels.
- The firm has trimmed earnings forecasts four times this year amid market-share pressure from Eli Lilly’s Mounjaro.
- Analysts warn the foundation’s push for greater control could mark a shift away from its historically hands-off approach — raising questions over future strategic independence.