Novartis announces takeover bid for MorphoSys AG to boost oncology pipeline

In a significant move within the pharmaceutical industry, Novartis has entered into an agreement to launch a voluntary public takeover offer to acquire MorphoSys AG, a Germany-based global biopharmaceutical company renowned for developing innovative medicines in oncology. This acquisition, valued at EUR 2.7 billion, or EUR 68 per share, marks a strategic step for Novartis to bolster its oncology pipeline, particularly in hematology, and to extend its global presence in this key therapeutic area.

The acquisition is set to enrich Novartis’ portfolio with cutting-edge treatments, including pelabresib (CPI-0610), a novel treatment option for patients with myelofibrosis (MF) when used in combination with ruxolitinib. This combination has shown promise in reducing spleen volume and improving symptoms in MF patients, as evidenced by the positive outcomes of the Phase 3 MANIFEST-2 study. Additionally, tulmimetostat (CPI-0209), an early-stage investigational drug targeting solid tumors or lymphomas, will also be part of the acquisition.

Myelofibrosis, a rare and debilitating form of blood cancer, has limited treatment options available. The introduction of pelabresib in combination with ruxolitinib represents a potential advancement in therapy, offering hope for improved patient outcomes. The efficacy of this combination, demonstrating significant spleen volume reduction and symptom improvement, underscores Novartis’ commitment to addressing unmet medical needs in oncology.

Approved unanimously by the boards of both companies, the transaction hinges on a minimum acceptance threshold of 65% of outstanding shares tendered in the offer and the receipt of regulatory approvals. Expected to close in the first half of 2024, this acquisition is subject to customary closing conditions. Until then, MorphoSys AG will continue to operate independently.

Pelabresib, designed to inhibit the function of bromodomain and extra-terminal domain (BET) proteins, represents a novel approach in cancer treatment by targeting abnormally expressed genes. Its development, partially funded by The Leukemia and Lymphoma Society, highlights the collaborative efforts in advancing cancer research.

The planned acquisition of MorphoSys by Novartis is a testament to the dynamic nature of the pharmaceutical industry’s efforts to combat cancer. By incorporating MorphoSys’ innovative treatments into its oncology pipeline, Novartis reinforces its position as a leader in healthcare innovation, dedicated to delivering new and effective treatment options for cancer patients worldwide.