Novartis Launches Tender Offer to Acquire MorphoSys at €68 per Share

NovartisNovartis (NVS.US) has made a takeover offer for German cancer drug maker MorphoSys (MOR.US), proposing to acquire all outstanding shares of the company for €68 per share or a total of €2.7 billion in cash.

The offer price is at a 142% premium to the volume-weighted average price in the last three months. The acceptance period for this offer starts today and ends on May 13, 2024.

According to reports, in February this year, Novartis reached a voluntary public takeover agreement with MorphoSys. The transaction is subject to customary closing conditions, including acceptance of the offer by at least 65% of MorphoSys' outstanding shares and receipt of regulatory approvals.

According toUBSAnalysts estimate that MorphoSys's key experimental drug pelabresib has a 70% chance of reaching peak sales of 1 billion euros.Morgan StanleyAnalyst Mark Purcell said that the cooperation between the two pharmaceutical companies is strategically significant because MorphoSys has been studying the effectiveness of using pelabresib in combination with Jakafi. Novartis sells Jakafi outside the United States.

This transaction is expected to be completed in the first half of 2024. Prior to the completion of the transaction, MorphoSys will continue to operate as an independent company.

Editorial Responsibility: Guo Mingyu