Drug
maker Novartis is
in
advanced
talks
to
acquire
MorphoSys,
a
developer
of
cancer
treatments
that
has
a
market
value
of
1.6
billion
euros
($1.7
billion),
two
people
familiar
with
the
matter
said
on
Monday.
Novartis has
so
far
prevailed
over
rival
drug
maker
Incyte,
which
also
made
an
offer
for
MorphoSys,
the
sources
said.
The
sources
added
that
there
is
no
certainty
that
the
deal
negotiations
will
conclude
successfully
and
requested
anonymity
because
the
matter
is
confidential.
They
declined
to
give
any
information
about
the
acquisition
price.
Novartis,
MorphoSys
and
Incyte
did
not
immediately
respond
to
requests
for
comment.
Headquartered
in
Planegg,
Germany,
MorphoSys
develops
drugs
to
fight
deadly
forms
of
cancers
such
as
myelofibrosis,
which
is
a
rare
type
of
bone
marrow
cancer,
and
certain
types
of
knotty
lymphomas.
MorphoSys
main
revenue
generator
is
a
lymphoma
drug
called
Monjuvi,
which
it
sells
as
part
of
a
profit-sharing
agreement
with
Incyte.
MorphoSys
said
last
week
that
Monjuvi’s
U.S.
net
product
sales
were
$92
million
in
2023,
and
that
it
expected
these
sales
to
come
in
between
$80
million
and
$95
million
in
2024.
The
company
has
said
it
expects
revenue
to
go
up
as
Monjuvi
is
approved
for
more
indications.
One
of
MorphoSys’
most
promising
drugs,
known
as
Pelabresib,
is
an
inhibitor
of
proteins
implicated
in
the
development
and
progression
of
myelofibrosis.
MorphoSys
stumbled
in
November
when
Pelabresib
missed
some
key
goals
in
clinical
trials,
but
said
it
was
still
planning
to
apply
in
2024
for
approval
to
commercialize
the
drug
in
the
U.S.
and
Europe.
To
slash
costs,
MorphoSys
shut
down
some
of
its
early-stage
research
programs
at
the
start
of
2023,
laying
off
about
17%
of
its
workforce.
It
now
employs
almost
550
people
in
its
U.S.
and
German
offices,
according
to
the
company’s
website.
Novartis has
also
been cutting
jobs
and
costs,
and
spun
off
its
generic
drugs
business
Sandoz
last
year,
part
of
a
focus
on
fewer
therapeutic
areas
and
geographic
markets.
Its
revenue
growth
has
been
driven
by
its
heart
failure
drug
Entresto,
its
medicine
Kesimpta
for
multiple
sclerosis,
and
breast
cancer
drug
Kisqali.
Revenue
gains
for
Pluvicto,
a
precision
radiotherapy
against
prostate
cancer,
eye
drug
Lucentis
and
gene
therapy
Zolgensma
against
spinal
muscular
atrophy fell
short
of
market
expectations in
the
fourth
quarter
of
2023.
