Novartis is reportedly leading the race to acquire German cancer drug maker MorphoSys, according to a recent report by Reuters. The news has caused a spike in MorphoSys’ share price, indicating significant market interest in the potential acquisition.
Earlier this year, Novartis had withdrawn from advanced discussions to acquire Cytokinetics, but the company seems to be actively pursuing mergers and acquisitions. Sources familiar with the matter revealed that Novartis is currently engaged in advanced talks to acquire MorphoSys, while Incyte is also involved in the M&A discussions, as reported by Reuters.
While the details of the bid and potential acquisition price remain undisclosed, both Novartis and Incyte have existing connections with MorphoSys. Novartis had taken over a preclinical cancer program from MorphoSys in 2022, and Incyte had previously partnered on MorphoSys’ lymphoma medication, Monjuvi.
Monjuvi, the sole commercial product of MorphoSys, generated $92 million in U.S. sales last year, with anticipated sales of $80 million to $95 million in 2024. The potential acquisition by Novartis marks a significant development in MorphoSys’ strategic direction, as the company had recently announced the termination of its preclinical research programs to focus on mid- to late-stage oncology programs, following a pipeline trim initiated by the Novartis deal.
Moreover, MorphoSys faced mixed results from a phase 3 study of its BET inhibitor pelabresib in myelofibrosis. While the primary endpoint was met, the drug failed to meet the second endpoint, prompting a shift in the company’s messaging and reaffirmation of the data’s significance.
Novartis’ reported M&A efforts with MorphoSys mark the second instance this year of the company being linked to M&A speculations. In January, reports emerged of Novartis’ potential acquisition of Cytokinetics, which was later abandoned by the company.
Following the news of Novartis’ interest, MorphoSys shares surged by 50% on Monday afternoon, reflecting the market’s reaction to the potential acquisition.
