Novartis AG to acquire cancer treatment developer MorphoSys AG for 2.7 billion Euros

Switzerland-based pharmaceutical manufacturer Novartis AG has announced that it will acquire the German biotechnology company MorphoSys AG for 2.7 billion Euros (2.9 billion dollars).

According to statements from Novartis and MorphoSys, Novartis will offer shareholders 68 Euros per share in cash and will take MorphoSys private following the deal.

According to a Reuters report, this agreement is subject to certain conditions, including the acceptance of a minimum threshold of 65 percent of MorphoSys's capital and regulatory approvals.

ADDING CANCER DRUGS TO ITS PORTFOLIO

Novartis, which has been cutting costs and laying off employees, divested its drug unit Sandoz last year. Novartis stated that its merger and acquisition strategy focuses on deals valued under 5 billion dollars.

While MorphoSys shares rose 15 percent to 66.10 Euros after the opening, Novartis shares increased by 0.5 percent.

As a result of this agreement, Novartis will add 'pelabresib' to its drug portfolio, one of MorphoSys's most promising drugs, which is used in the fight against deadly cancer types such as myelofibrosis, a rare form of bone marrow cancer, and lymphoma.

SHARES HAD RISEN BY MORE THAN 40 PERCENT

Reports had appeared in global media that Novartis was advancing talks to acquire MorphoSys. Following this news, MorphoSys shares had risen by more than 40 percent.

News Source: 12punto