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In a dramatic twist in the Pfizer Weight-Loss $9B suit, a Delaware vice chancellor on Tuesday denied Pfizer Inc.’s emergency request to freeze Novo Nordisk’s $9 billion bid for Metsera Inc., a biotech at the forefront of developing next-generation GLP-1 weight-loss drugs.

Vice Chancellor Morgan T. Zurn ruled that it was too early for the court to intervene, noting that the companies remain locked in a competitive bidding process that could determine the future of one of the hottest markets in the pharmaceutical world — obesity treatments.

“It would be inconsistent with the parties’ expectations and would interrupt the ongoing topping process to the detriment of Metsera stockholders,” Zurn said, referring to the phase where rival bidders can submit higher offers.

Pfizer and Novo Locked in a Billion-Dollar Tug-of-War

The dispute stems from Pfizer’s September deal to acquire Metsera for up to $7.3 billion, a move aimed at challenging Novo’s global dominance through its blockbuster drugs Ozempic and Wegovy.

But Novo fired back in late October with a $9 billion counteroffer, structured with 50% nonvoting preferred stock and a $6.5 billion cash dividend, which Pfizer alleges was designed to sabotage Metsera’s progress and preserve Novo’s monopoly over the fast-expanding GLP-1 market.

Pfizer quickly launched legal action, filing a Delaware Chancery Court lawsuit on Oct. 31 accusing Metsera’s board of breaching fiduciary duty and Novo of tortious interference. The pharma giant also escalated the fight to federal court, submitting an antitrust complaint in the U.S. District Court for Delaware, alleging violations of the Sherman and Clayton Acts.

The court scheduled a hearing for Wednesday at 3:15 p.m., signaling that it may step in if Metsera decides to terminate Pfizer’s merger agreement or ink a deal with Novo.

“My goal is to find a window where bidding has ended and any termination is, in fact, on the table,” Zurn said.

Pfizer Argues Novo’s Bid Is a Legal Ambush

Jonathan M. Moses of Wachtell Lipton Rosen & Katz, representing Pfizer, warned that Novo’s latest offer amounted to an immediate breach of Pfizer’s existing agreement with Metsera.

“When Metsera accepts the Novo Nordisk bid, the damage is done at signing, not closing,” Moses told the court. “If there is no TRO by Thursday, Metsera will terminate its agreement with Pfizer and sign one with Novo.”

Moses further accused Novo of being “desperate” to block Pfizer from securing Metsera, claiming that Novo’s preferred-stock structure was engineered to shut out any future competing bidders.