Novartis To Acquire Bio/Pharma Company MorphoSys for $2.9 Bn
Novartis has agreed to acquire MorphoSys, a Planegg, Germany-based bio/pharmaceutical company, for EUR 2.7 billion ($2.9 billion).
The deal includes MorphoSys’ pipeline of antibody-based drugs, but not MorphoSys’ lone commercial product, Monjuvi/Minjuvi (tafasitamab-cxix), which is being acquired separately by Incyte Pharmaceuticals, a Wilmington, Delaware-based bio/pharmaceutical company. MorphoSys has entered into a separate purchase agreement with Incyte to sell and transfer all rights worldwide related to tafasitamab for $25.0 million. Currently, MorphoSys partners with Incyte on the development and commercialization of tafasitamab, which is approved for treating certain forms of relapsed or refractory diffuse large B-cell lymphoma (DLBCL). Tafasitamab is now co-marketed in the US by MorphoSys and Incyte as Monjuvi and outside the US by Incyte as Minjuvi. In addition to its approved indication, tafasitamab is being evaluated for first-line DLBCL, relapsed or refractory follicular lymphoma, and relapsed or refractory marginal zone lymphoma.
With the pending acquisition of the rest of MorphoSys, Novartis gains MorphoSys’ pipeline of antibody-based drugs. The key drug candidate from MorphoSys’ pipeline is pelabresib, in late-stage development, for treating myelofibrosis, a rare type of blood cancer. Other key pipeline candidates are tulmimetostat, in early-stage development for treating solid tumors or lymphomas.
The Boards of Directors of both Novartis and MorphoSys have unanimously approved Novartis’ bid to acquire MorphoSys. Novartis has agreed to a voluntary public takeover for all shares of MorphoSys for EUR 68 ($73) per share for a total equity value of EUR 2.7 billion ($2.9 billion).
The transaction is subject to customary closing conditions, including acceptance of the takeover offer by at least 65% of MorphoSys’ outstanding shares and receipt of regulatory approvals. The deal is expected to close in the first half of 2024. MorphoSys and Novartis also have agreed to take MorphoSys private after the takeover offer has been settled.