Novartis Acquires German Biotech MorphoSys in $3 Billion Deal to Boost Oncology Pipeline

Swiss pharmaceutical giant Novartis has revealed plans to acquire German biotech company MorphoSys in an all-cash deal worth approximately $3 billion. The acquisition, announced on February 5, 2024, aims to integrate several clinical-stage oncology candidates, including tulmimetostat, a dual EZH2 and EZH1 inhibitor, into Novartis' portfolio. The offer of $73 per share represents an 89 percent premium to the company's unaffected closing price on January 25, 2024, with a four-week acceptance period for shareholders.

MorphoSys CEO Jean-Paul Kress emphasized that the decision was made after a thorough strategic review, believing it to be in the best interests of the company, shareholders, and cancer patients. The acquisition is expected to provide the company with access to Novartis' financial resources and global reach, creating new opportunities for its employees. One of the key objectives is to accelerate the clinical development of MorphoSys' therapeutic candidates, particularly tulmimetostat, which has received fast-track designation from the FDA for advanced ARID1A-mutated endometrial cancer. The move aligns with Novartis' strategy to strengthen its oncology pipeline, demonstrating a commitment to value-creative bolt-ons in core therapeutic areas.

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