Novartis AG on Monday announced it has agreed to buy German biopharmaceutical company MorphoSys AG for 2.7 billion euros ($2.9 billion).
Under the deal, Switzerland-based Novartis would acquire pelabresib, a potential treatment for myelofibrosis, and the anti-tumor drug tulmimetostat.
“With the planned acquisition of MorphoSys, we aim to further strengthen our leading pipeline and portfolio in oncology, adding to our capabilities and expertise,” Novartis President and Chief Medical Officer Shreeram Aradhye said in a statement.
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The deal has already been approved by the boards of both companies, and Novartis will make a voluntary public takeover offer or all no-par value bearer shares of MorphoSys AG for 68 euros a share.
skyrocketed after the deal was announced Monday. It will continue to operate as an independent company until the deal wins shareholder and regulatory approval, expected in the first half of 2024, Novartis said.
Last fall, Novartis spun off its generic drugs unit, Sandoz
to focus on being purely an innovative medicines business. But it announced disappointing fourth-quarter earnings last week, along with a weaker-than-expected outlook.
Novartis’ Swiss shares
have gained about 20% over the past 12 months, while its American depository receipts
are up about 28%.