Novartis: MorphoSys Acquisition Yields Next-Generation Myelofibrosis Drug Pelabresib at a Fair Price

We are not making any changes to our fair value estimate following the announced acquisition of MorphoSys by Novartis for close to $3 billion. We believe pelabresib represents the key driver in the deal. Since pelabresib has been successfully studied in combination with Novartis’ Jakafi (U.S. rights reside with Incyte), we believe Novartis can leverage its strong entrenchment in the myelofibrosis community to launch pelabresib efficiently. Further, the new drug helps build out Novartis’ innovative drug pipeline, a core element in the firm’s wide moat.