Pharmaceutical giant Pfizer is returning to the US debt markets with a massive bond offering aimed at raising at least $5 billion. The deal, which includes seven tranches of bonds, will help fund its recent acquisition of Metsera Inc., a biotech startup focused on obesity treatments.
Pfizer acquired Metsera for up to $10 billion last month, beating out Danish rival Novo Nordisk in a competitive bidding war. The market expects the obesity drug space to exceed $100 billion globally by the end of the decade, making Metsera a promising player.
The company plans to diversify its portfolio following the decline in demand for its COVID-19 products. The bond deal comes as investors are active in the investment-grade bond market, with several companies issuing bonds this week.
Pfizer’s stock has a Hold consensus rating based on 15 analysts’ recommendations, implying a 15.26% upside potential.
Source: https://www.tipranks.com/news/pfizer-pfe-taps-bond-market-for-5-billion-to-fund-metsera-acquisition