Morphosys says takeover by Novartis on course after report of drug safety concern (updated)

Morphosys AG

29/04/2024 11:32

(Writes through with detail, background, no Novartis comment;
adds shares in final paragraph)
       BERLIN, April 29 (Reuters) - Morphosys  MORG.DE  said
its takeover by Novartis  NOVN.S  is still expected to close in
the first half of this year, after a news report on a possible
drug safety risk knocked the German biotechnology company's
stock price on Monday.
    Morphosys' statement came after a report by specialist
website STAT News, citing two people familiar with the matter,
of a safety issue with its experimental drug pelabresib, which
is being developed to treat myelofibrosis, a rare type of blood
cancer affecting the bone marrow. 
    "We generally do not discuss our interactions with
regulatory authorities publicly. We remain confident in the
benefit-risk profile of the combination of pelabresib and
ruxolitinib," a Morphosys spokesperson said in an emailed
response to Reuters, referring to Novartis' treatment for the
same condition. 
    "The planned acquisition by Novartis is progressing
steadily," they added.
    Novartis declined to comment on the STAT News report.
    Pelabresib is seen as one of Morphosys's most promising
drugs and a driver of Novartis's interest in the company.
    The Swiss drug manufacturer struck a deal in February to
take over Morphosys for 2.7 billion euros ($2.89 billion).
    Shares in Morphosys were down 1.5% at 1026 GMT. Novartis
shares were down 0.3%.
    
($1 = 0.9338 euros)

 (Reporting by Patricia Weiss and Paul Arnold, Writing by Rachel
More, Editing by Andrey Sychev, Kirsten Donovan)
 ((rachel.more@thomsonreuters.com;))