This week, Reuters reported that Swiss drugmaker Novartis AG said it will acquire German biotech MorphoSys AG, a developer of cancer treatments, for Euro2.7 billion (US$2.9 billion).
The move by Novartis aims to add a promising rare bone marrow cancer treatment candidate to its portfolio.
The companies said that shareholders of the German firm would be offered Euro68.00 per share in cash by the Swiss group, which would make the cancer treatment specialist private after the deal.
However, the two drugmakers added that the deal is contingent on certain conditions, including a minimum acceptance threshold of 65 percent of MorphoSys’ share capital and regulatory approvals.
Based in Planegg, Germany, MorphoSys will continue to operate as a separate, independent company until the deal is completed, expected to be in the first half of 2024.
Novartis will subsequently own Pelabresib, one of MorphoSys’ most promising drugs, which is used to treat serious forms of cancer, such as myelofibrosis, a rare type of bone marrow cancer, and certain types of knotty lymphomas.
In a separate statement, MorphoSys said its management board and supervisory board will urge shareholders to accept Novartis’ offer.
After a $1.7 billion takeover from U.S. cancer specialist Constellation Pharma, MorphoSys secured ownership of pelabresib, which, in December, met its late-stage primary study goal and all four hallmarks of the disease in myelofibrosis, when used in combination with ruxolitinib, a class of drugs known as JAK inhibitors.
The company now intends to file its application for the combination treatment in the second half of 2024 in the U.S.
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