Novartis to acquire cancer drug developer MorphoSys for $2.9 billion

(Reuters) -Drugmaker Novartis AG (SIX:) said on Monday it will acquire MorphoSys AG, a developer of cancer treatments, for 2.7 billion euros ($2.90 billion).

Reuters first reported on Monday that Novartis was in advanced talks to acquire German biotech MorphoSys, shares of which surged more than 40% on the news.

The Switzerland-based company will offer shareholders 68.00 euros per share in cash and take MorphoSys private after the deal, which is contingent on certain conditions.

The conditions include a minimum acceptance threshold of 65% of MorphoSys’ share capital and regulatory clearances, the companies said.

Upon the completion of the deal, expected in the first half of 2024, Novartis will own pelabresib. The drug is one of MorphoSys’ most promising treatments, 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.

($1 = 0.9311 euros)