Novartis AG, a leading pharmaceutical company based in Switzerland, has announced its plans to acquire German biopharmaceutical company MorphoSys AG in a deal worth 2.7 billion euros ($2.9 billion).
This strategic acquisition will enable Novartis to strengthen its pipeline and portfolio in the field of oncology. The company aims to expand its capabilities and expertise by obtaining pelabresib, a potential treatment for myelofibrosis, as well as the anti-tumor drug tulmimetostat.
The boards of both Novartis and MorphoSys have already approved the deal. In the first half of 2024, pending regulatory and shareholder approval, MorphoSys will continue to operate as an independent company until the acquisition is finalized.
Novartis recently shifted its focus to becoming a purely innovative medicines business, spinning off its generic drugs unit, Sandoz. However, the company reported disappointing fourth-quarter earnings last week, along with a weaker-than-expected outlook.
Over the past 12 months, Novartis' Swiss shares have seen a 20% increase, while its American depository receipts have risen by approximately 28%.
This acquisition marks a significant step forward for Novartis, consolidating its position in the pharmaceutical industry and reinforcing its commitment to advancing healthcare through innovative solutions.
