Novartis to acquire cancer drug developer MorphoSys for $2.9 bln (updated)

Morphosys AG

05/02/2024 23:35

(Adds details from statement and background throughout)
       Feb 5 (Reuters) - Drugmaker Novartis AG  NOVN.S  said on
Monday it will acquire MorphoSys AG  MORG.DE , a developer of
cancer treatments, for 2.7 billion euros ($2.90 billion).
    Reuters first reported on Monday that Novartis was in
advanced talks to acquire German biotech MorphoSys, shares of
which surged more than 40% on the news.
    The Switzerland-based company will offer shareholders 68.00
euros per share in cash and take MorphoSys private after the
deal, which is contingent on certain conditions.
    The conditions include a minimum acceptance threshold of 65%
of MorphoSys' share capital and regulatory clearances, the
companies said.
    Upon the completion of the deal, expected in the first half
of 2024, Novartis will own pelabresib. The drug is one of
MorphoSys' most promising treatments, 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.
    MorphoSys said in a separate statement that its management
board and supervisory board intend to recommend its shareholders
to accept Novartis' offer.
    
    


($1 = 0.9311 euros)

 (Reporting by Urvi Dugar in Bengaluru; Editing by Shilpi
Majumdar)
 ((UrviManoj.Dugar@thomsonreuters.com;))