Why Novartis is going to walk away from its acquisition of MorphoSys

Novartis said Monday that it intends to buy MorphoSys for just under $3 billion. The deal will not close. Six months from now, or sooner, Novartis will walk away — slightly embarrassed but otherwise unscathed — happy to pay a small breakup fee to MorphoSys to avoid owning a drug for myelofibrosis that regulators turned away.

MorphoSys will not fare as well from the breakup. Its future, and that of the drug called pelabresib at the center of the deal, will be thrown into limbo.

This is all speculation on my part, but it’s supported by separate conversations with two people familiar with pelabresib and the debate inside Novartis over the MorphoSys acquisition. They requested anonymity to discuss confidential matters.

STAT+ Exclusive Story

Already have an account? Log in

This article is exclusive to STAT+ subscribers

Unlock this article — plus in-depth analysis, newsletters, premium events, and news alerts.

Already have an account? Log in

Individual plans

Group plans

Monthly

$39

Totals $468 per year

$39/month Get Started

Totals $468 per year

Starter

$30

for 3 months, then $399/year

$30 for 3 months Get Started

Then $399/year

Annual

$399

Save 15%

$399/year Get Started

Save 15%

11+ Users

Custom

Savings start at 25%!

Request A Quote Request A Quote

Savings start at 25%!

2-10 Users

$300

Annually per user

$300/year Get Started

$300 Annually per user

View All Plans

To read the rest of this story subscribe to STAT+.

Subscribe

Log In