MorphoSys Shares Jump After It Agrees to $2.9 Billion Takeover by Novartis
By Adria Calatayud
MorphoSys shares jumped after the German biotechnology company agreed to be taken over by Swiss pharmaceutical giant Novartis in an all-cash deal valued at 2.7 billion euros ($2.90 billion).
At 0916 GMT on Tuesday, shares in MorphoSys were 14% higher at EUR65.70, building on Monday's gains and taking their rise this week to 56%. The stock has nearly doubled its value since the beginning of the year, but still trades below the EUR68 a share offered by Novartis.
Novartis traded 0.3% lower at CHF90.05.
The deal--expected to close in the first half--would strengthen Novartis's oncology-drug pipeline with the addition of pelabresib, a potential treatment for patients with myelofibrosis that is in a late stage of development, Novartis said.
MorphoSys said the deal will give it ample resources to accelerate the commercialization of pelabresib and development opportunities to which it currently doesn't have access as a standalone company.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
February 06, 2024 04:33 ET (09:33 GMT)
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