After Incyte’s commercial buy, Novartis shells out 2.7B for cancer specialist MorphoSys

In recent developments, Novartis has agreed to acquire the German oncology specialist MorphoSys for €2.7 billion ($2.9 billion), a decision that aligns with Novartis' strategy to bolster its oncology portfolio through "sub-$5 billion" acquisitions as per their CEO Vas Narasimhan's statements. This move comes shortly after Incyte, who was also reportedly vying for MorphoSys, purchased full global rights to MorphoSys' lone commercial product, Monjuvi, for $25 million.

Key points from the topic include:

1. MorphoSys enters a deal to sell itself to Novartis for €2.7 billion ($2.9 billion).
2. Novartis' acquisition focuses on MorphoSys' pipeline, particularly the bone cancer drug pelabresib for myelofibrosis.
3. After the buyout rumors began circulating, the planned deal was executed swiftly, with Novartis set to acquire pelabresib, which met its primary endpoint in the MANIFEST-2 study with key results for spleen volume reduction in patients with myelofibrosis.
4. Incyte, earlier reported as a potential bidder for MorphoSys, acquires Monjuvi (tafasitamab) for $25 million, taking full global rights for the lymphoma drug and avoiding future milestone payments to MorphoSys.
5. Monjuvi's late-stage trials are essential for its future prospects in follicular and marginal zone lymphoma, with data expected in 2024 and 2025, respectively, leading to the timing of Novartis' acquisition of MorphoSys being perceived as a gamble on the future of pelabresib.

These developments indicate a strategic approach by Novartis to expand its oncology portfolio by acquiring key assets, primarily pelabresib, and adding potential value to its existing treatments in sickle cell disease, leukemia, and other disorders. Incyte, on the other hand, gains full ownership of Monjuvi, which was jointly developed with MorphoSys and recently achieved positive results in the accelerated approval phase.