Pharmaceutical company Novartis AG announced on Monday that it will acquire MorphoSys AG, a developer of cancer treatments, for 2.7 billion euros, equivalent to 2.90 billion dollars.
Reuters first reported on Monday that Novartis was in advanced talks to acquire German biotechnology company MorphoSys, whose shares rose more than 40% with the news.
The Swiss-based company will offer shareholders 68.00 euros per share in cash and will delist MorphoSys after the agreement, which is subject to certain conditions.
The conditions include a minimum acceptance threshold of 65% of MorphoSys’ share capital and regulatory approvals, the companies said.
Upon completion of the transaction, expected in the first half of 2024, Novartis will own Pelabresib. The drug, one of MorphoSys’ most promising treatments, is used to combat deadly forms of cancer such as myelofibrosis, a rare type of bone marrow cancer, and certain types of nodal lymphomas.
MorphoSys said in a separate statement that its management board and supervisory board intend to recommend to its shareholders that they accept Novartis’ offer.