Novartis AG (NVS), a Swiss pharmaceutics innovator, announced on Monday, 5 February 2024, that it had sealed the deal to acquire German biopharmaceutical firm MorphoSys AG (MOR) for €2.7bn, or €68 per share. With this takeover, the company aims to boost its global oncology pipeline.
Novartis broadening horizons with bolt-on MorphoSys acquisition
This per-share takeover price is significantly higher than the German manufacturer’s going market performance. At the final bell on Monday, MorphoSys’s Nasdaq shares priced at $17.27. Bloomberg claimed that this acquisition was an attempt by Vasant Narasimhan, the Novartis CEO, to prove to investors that he could drive financial and organisational growth.
After disappointing financial results, Novartis reportedly plans to zoom in on growth opportunities. Analysts believe that acquisitions such as the MorphoSys takeover can bolster a company’s financial standing if it has a therapeutic, such as the experimental pelabresib blood-cancer drug, that makes a notable difference.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
According to Bloomberg, MorphoSys had hoped that pelabresib would lift growth after a languid reception of its main market contender, Monjuvi. As pelabresib was used in combination with the Novartis Jakafi drug to research its effectiveness, experts say that this strategic move is the next logical step. Others, however, question this acquisition on the back of limited clinical success and believe that Novartis is paying too much.
In its press statement, the Novartis president, development and chief medical officer, Shreeram Aradhye, said:
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.
He further said that this takeover will strengthen Novartis’s oncology portfolio. The success of this venture will be reflected in the trading arena.
