Novartis apparently in talks
Morphosys take off with takeover rumors
February 5, 2024, 6:08 p.m
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The biotechnology company Morphosys specializes in cancer therapies. According to a study, a hopeful achieved the primary goal but failed to convince investors. But now things are going up significantly with reports of Swiss interest in taking over the paper.
The Swiss pharmaceutical company Novartis has its eye on Morphosys and, according to insiders, is in advanced talks to take over the German biotech company. Novartis prevailed against the drug manufacturer Incyte, which is a distribution partner of Morphosys and also courted the company, according to people familiar with the matter. However, it is not yet certain that a transaction will take place. No comment was available from Novartis, Morphosys and Incyte. Morphosys shares rose by more than 37 percent to an annual high of 57.86 euros.
Morphosys, based in Planegg near Munich, specializes in the development of cancer drugs. The company’s greatest hope is the drug pelabresib for the treatment of myelofibrosis – a rare malignant disease of the bone marrow – for which Morphosys presented results of the decisive phase 3 study at the end of last year. These failed to convince investors, although pelabresib achieved the main goal of the study. However, there was no statistically significant benefit for an important secondary goal.
Morphosys expects sales of pelabresib to reach billions so far and plans to submit applications for approval for the drug in the US and EU in the middle of the year. Morphosys’ only proprietary drug on the market to date is the cancer drug Monjuvi, which the company sells under a profit-sharing agreement with Incyte. Last year, Morphosys had net U.S. product sales of $92 million with Monjuvi.
To cut costs, Morphosys halted some of its early-stage research programs in early 2023 and eliminated about 17 percent of its jobs. According to its own information, Morphosys now employs almost 550 people in its offices in the USA and Germany. Novartis has also cut jobs and costs and spun off its Sandoz generics business last year to focus on fewer therapeutic areas and geographic markets. The Swiss pharmaceutical giant was recently unable to convince investors with strong sales and profit growth in 2023 and a dividend increase.