Novartis AG announced Monday that it has agreed to buy German biopharmaceutical company MorphoSys AG for 2.7 billion euros ($2.9 billion).
Under the agreement, Novartis, based in Switzerland, will obtain the drug belapressib, a potential treatment for myelofibrosis, and the anti-tumor drug tolmetostat.
“With the planned acquisition of MorphoSys, we aim to strengthen our leading pipeline and portfolio in oncology, increasing our capabilities and expertise,” Shriram Aradhye, president and chief medical officer of Novartis, said in a statement.
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The deal has already been approved by the boards of directors of both companies, and Novartis will make a voluntary public takeover offer or all non-par value holder shares of MorphoSys AG for €68 per share.
MorphoSys MOR shares,
Moore,
It rose after the deal was announced on Monday. Novartis said it will continue to operate as an independent company until the deal receives shareholder and regulatory approval, expected in the first half of 2024.
Last fall, Novartis spun off its generics unit, Sandoz SDZ,
To focus on being a purely innovative pharmaceutical company. But it reported disappointing fourth-quarter earnings last week, along with a weaker-than-expected forecast.
Novartis Swiss shares NOVN,
It gained about 20% over the past 12 months, while NVS American Depositary Receipts,
High by about 28%.
