Novartis to acquire cancer-focused MorphoSys for $2.9 billion.
💊 Drugmaker $NVS (Novartis ADR) said it will acquire $MOR.DE, a developer of cancer treatments, for €2.7 billion, adding a promising rare bone-marrow cancer treatment candidate to its portfolio. German biotech firm's shares surged more than 53% on the February 5th trading session in Frankfurt after the announcement .
💊 The Swiss group will offer shareholders €68.00 per share in cash and take MorphoSys private after the deal, which is contingent on certain conditions, including a minimum acceptance threshold of 65% of MorphoSys' share capital and regulatory clearances, the companies said.
💊 Novartis has been cutting jobs and costs, and spun off its generic drugs business Sandoz last year, part of a focus on fewer therapeutic areas and geographic markets. It has said its overall mergers and acquisitions strategy was focused on deals worth less than $5 billion.
💊 The Planegg, Germany, headquartered MorphoSys will continue to operate as a separate, independent company until the completion of the deal, expected in the first half of 2024.
Novartis will own pelabresib, one of MorphoSys' most promising drugs, 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. MorphoSys secured pelabresib, with a $1.7 billion takeover from U.S. cancer specialist Constellation Pharma, in the hopes of setting a new treatment standard.
💊 In December, pelabresib met its late-stage primary study goal and all four hallmarks of disease in myelofibrosis, when used in combination with ruxolitinib, a class of drugs called JAK inhibitors. The company now intends to file U.S. approval application for the combination treatment in the second-half of 2024.
Read more ❓ www.reuters.com/markets/deals/novartis-acquires-cancer-drug-developer-morphosys-29-bln-2024-02-05/
✨ @Cancer-Med Smart Portfolio consists of stocks of leading biotechnology companies that manufacture drugs used to treat the various types of cancer, as well as companies that have ongoing research programs dedicated to eradicating this disease, hopefully saving millions of lives or making living with the disease more manageable.
The minimum investment amount for the @Cancer-Med Smart Portfolio is $500.
Your capital is at risk. Past performance is not an indication of future results.... Show More
