Novartis to Acquire MorphoSys AG for $2.9 Bn

Recently, Novartis announced the results of its voluntary public takeover offer for MorphoSys shares.

Global Pharma player Novartis to acquire MorphoSys AG, a leading developer of cancer treatments, for a sum of $2.9 billion.

Reportedly, the Switzerland-based pharma was in advanced talks to acquire MorphoSys, leading to the German biotech firm's shares surging more than 40%.

Per the deal, Novartis will own pelabresib, one of MorphoSys' most popular drugs, which is used to fight deadly forms of cancers such as myelofibrosis, a rare type of bone marrow cancer, and certain types of knotty lymphomas.

Recently, Novartis announced the results of its voluntary public takeover offer for MorphoSys shares.

Key Financial Details

According to the company’s statement, as of the end of the acceptance period at midnight CEST on May 13, 2024, the offer was accepted by approximately 79.6% of MorphoSys’s total share capital.

This includes purchases made by Novartis BidCo AG outside the offer, accounting for about 11.6% of the share capital.

All conditions of the offer, including the minimum acceptance threshold of 65%, were met by the end of the acceptance period. The company has also scheduled the settlement of the shares tendered during the initial acceptance period for May 23, 2024.

“The statutory two-week additional acceptance period for the Offer will commence on 17 May 2024 and end on 30 May 2024 at 24:00 hours CEST and 18:00 hours EDT (also on 30 May 2024). During this time, shareholders who have not tendered their MorphoSys shares, including shares represented by MorphoSys ADS, can still accept the Offer,” the company stated.

Now that all the conditions of the offer have been met, Novartis is set to initiate the integration process of MorphoSys. This includes gaining full access to pelabresib (CPI-0610), a new BET inhibitor used in conjunction with ruxolitinib for treating myelofibrosis patients.

The integration also grants Novartis full access to tulmimetostat (CPI-0209), an investigational dual inhibitor of EZH1 and EZH2 currently under trial for patients with solid tumors or lymphomas.

Additionally, Novartis will have access to a wide range of partnered assets, some of which are in collaboration with Novartis itself, including ianalumab (VAY736).

Novartis AG is a Swiss multinational pharmaceutical corporation based in Basel, Switzerland. It recently ranked in the global top five and is one of the largest pharmaceutical companies in the world. Novartis develops innovative medicines to address society’s greatest disease burdens. Their medicines reach more than 250 million people worldwide.

MorphoSys AG, on the other hand, is a German biopharmaceutical company founded in 1992. The company is headquartered near Munich, Germany, and has a wholly owned subsidiary, MorphoSys US Inc., in Boston, Massachusetts, in the US.

MorphoSys develops monoclonal antibodies for therapeutic and research applications, with a focus on the treatment of cancer and autoimmune diseases. They aspire to redefine how cancer is treated.