Novartis to Consolidate MorphoSys Acquisition with Site Closures and Layoffs
Acquisition and Delisting:
Novartis acquired MorphoSys in May 2024, holding approximately 91.04% of MorphoSys' share capital. A delisting agreement was signed, with Novartis intending to launch a public delisting purchase offer for all outstanding MorphoSys shares not held by Novartis12.
Merger Squeeze-Out:
Novartis plans to merge MorphoSys into Novartis, facilitating a squeeze-out of MorphoSys' minority shareholders. This involves transferring minority shareholders' shares to Novartis against a cash compensation of €68.00 per share, approved at MorphoSys' 2024 Annual General Meeting4.
Post-Buyout Consolidation:
Novartis will shutter 2 MorphoSys sites and lay off 330 staffers as part of its global restructuring efforts to save $1 billion and simplify its operations5.
Strategic Focus:
The acquisition aligns with Novartis' strategic focus on oncology, strengthening its pipeline with potential next-generation treatment options like pelabresib (CPI-0610) and tulmimetostat (CPI-0209)3.
Global Restructuring:
Novartis is undergoing a broader restructuring, aiming to eliminate 8,000 jobs worldwide and merge its oncology and pharmaceuticals departments into a single innovative medicines unit5.
Sources:
1. https://www.businesswire.com/news/home/20240619218783/en/MorphoSys-and-Novartis-Sign-Delisting-Agreement-and-Intend-to-Implement-a-Merger-Squeeze-out-of-MorphoSys%E2%80%99-Minority-Shareholders
2. https://www.biospace.com/morphosys-and-novartis-sign-delisting-agreement-and-intend-to-implement-a-merger-squeeze-out-of-morphosys-minority-shareholders
3. https://www.novartis.com/news/media-releases/novartis-strengthen-oncology-pipeline-agreement-acquire-morphosys-ag-eur-68-share-or-aggregate-eur-27bn-cash
4. https://www.accesswire.com/908186/merger-squeeze-out-of-morphosys-minority-shareholders-approved-at-2024-annual-general-meeting
5. https://www.fiercepharma.com/pharma/leaner-and-simpler-novartis-details-plans-cut-8000-jobs-worldwide