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KEY TAKEAWAYS
- Novartis plans to acquire MorphoSys for $2.9 billion to expand its cancer treatment portfolio.
- The deal will give Novartis ownership of pelabresib, a drug that aims to treat a rare type of bone marrow cancer.
- The deal is expected to close in the first half of 2024.
Novartis (NVS) has struck a deal to buy German biotech firm MorphoSys (MOR), a developer of cancer treatments, for 2.7 billion euros ($2.9 billion), as the Swiss drugmaker expands its roster of cancer treatments.
Novartis said Monday it will offer MorphoSys shareholders 68 euros per share in cash, a 94% premium to the average price of the stock over the past month before news of the acquisition broke.
The deal is expected to close in the first half of 2024 if the offer is accepted by at least 65% of shareholders.
The deal will give Novartis access to pelabresib, a treatment MorphoSys is developing to treat myelofibrosis, a rare kind of bone marrow cancer.
“Novartis will provide ample resources currently unavailable to MorphoSys as a standalone biotech company to help accelerate the development opportunities and maximize the commercialization potential of pelabresib at a greater speed and scale,” MorphoSys Chief Executive Officer Jean-Paul Kress said in a statement.
Last month, Novartis entered a deal which would require it to pay as much as $1.32 billion to Voyager Therapeutics (VYGR) to treat neurological illnesses.