Proactive Investors - Novartis (LON:0QLR) AG has announced the acquisition of Germany-based cancer drug maker MorphoSys AG through a €2.7 billion deal.
Unveiling the takeover on Monday, Novartis said the move would expand its oncology pipeline, relating to cancer treatments, alongside widening its footprint in haematology - blood disease studies.
Novartis will pay €68 per share in the biopharmaceutical firm, marking an 18% premium on Monday’s closing price.
“We are excited about the opportunity of bringing pelabresib, a potential next-generation treatment combined with ruxolitinib, to people living with myelofibrosis, a rare and debilitating form of blood cancer,” Novartis chief medical officer Shreeram Aradhye said.
This potential rare bone marrow cancer treatment has shown favourable trends in clinical trials, Novartis pointed out in a press release, with filing to the US Food and Drug Administration (FDA) expected later this year.
Novartis’ takeover of MorphoSys follows efforts to cut costs last year as part of a wider bid to refocus on fewer markets and therapeutic areas.
The deal includes a minimum acceptance threshold of 65% of MorphoSys' share capital and is subject to regulatory approval.
Shares in MorphoSys soared 14% to €65.40 on the news.