Novartis strengthens cancer pipeline with Morphosys acquisition
Published: Tuesday, Feb 6th 2024, 06:30
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The pharmaceuticals group Novartis is continuing its previous year's shopping spree undeterred. The Basel-based company is taking over the German biotech company Morphosys for 2.7 billion euros, equivalent to around 2.5 billion Swiss francs.
The acquisition strengthens Novartis' oncology pipeline, the Group announced in a press release late Monday evening. The transaction gives Novartis access to pelabresib, an active ingredient for the treatment of myelofibrosis (MF), a life-threatening, chronic bone marrow disease.
As Novartis itself writes, the cause of MF is currently still unknown. It is assumed that MF is caused by a change in the stem cells in the bone marrow.
Under the terms of the agreed transaction, which has been unanimously approved by the Boards of Directors of both companies, Novartis will launch a voluntary public tender offer for all no-par value bearer shares of Morphosys AG at a price of EUR 68 per share (or a total of EUR 2.7 billion).
The transaction is subject to customary closing conditions, including acceptance of the tender offer by at least 65 percent of the outstanding shares of Morphosys AG and receipt of regulatory approvals. The transaction is expected to close in the first half of 2024. Until completion of the transaction, Morphosys will continue to operate as a separate, independent company.
In addition to pelabresib, the acquisition also gives Novartis access to tulmimetostat, a compound that is still at an early stage of testing and is currently being tested in patients with solid tumors or lymphomas.
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