Novartis Agrees To Buy MorphoSys For $2.9 Billion, Sending Stock Up 56%

(CTN News) – Earlier this week, Novartis (NVS) announced that it had agreed to acquire German pharmaceutical company MorphoSys (MOR) for an undisclosed amount, causing the biotech stock to shoot up to near three-year highs.

There is an agreement involving MorphoSys and its cancer treatments, including a medication that is used to treat cancer called pelabresib, which is an experimental medication that is used to treat cancer.

The drug pelabresib is currently undergoing late-stage testing in an effort to diagnose myelofibrosis and treat it if it proves to be successful. A second drug, referred to as tulmimetostat, is also being tested by Morphosys for the treatment of solid tumors and lymphomas as part of ‘ clinical trials.

The stock of MorphoSys rocketed 56% ahead of the market’s closing before the shares of MorphoSys fell as the market closed.

Additionally, Incyte also announced it has acquired exclusive rights to a drug that it developed in collaboration with MorphoSys called tafasitamab, which was developed in collaboration with the company.

At the moment, it is being sold under the brand names of Monjuvi and Minjuvi as a treatment for certain types of lymphomas under these names.

It has been announced that Incyte (INCY) and will strike a $25 million deal in order to secure the exclusive rights to develop and sell tafasitamab on an exclusive basis throughout the world on a long-term basis.

After-hours trading on today’s stock market saw MorphoSys stock rise another 1.1% to a new high of 17.46, according to company officials. In terms of Relative Strength Ratings, the biotech stock has a perfect score of 99, meaning the shares rank in the top 1% of all stocks, according to IBD Digital.

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