MorphoSys to Buy Constellation Pharmaceuticals for $1.7 Billion

MorphoSys AG Wednesday said it agreed to buy Constellation Pharmaceuticals Inc. for $1.7 billion, or $34 a share.

The deal represents a roughly 68% premium to Tuesday's closing price of $20.24 for Constellation, a Cambridge, Mass., clinical-stage biopharmaceutical company.

German commercial-stage biopharmaceutical company MorphoSys said the deal adds a pair of mid- to late-stage product candidates that have broad therapeutic potential in various hematological and solid tumors.

MorphoSys said it has formed a long-term partnership with pharmaceutical investor Royalty Pharma PLC to help fund the Constellation deal and development of the combined pipeline. The agreement will provide MorphoSys with more than $2 billion, including an upfront payment topping $1.4 billion.

In exchange, MorphoSys said Royalty Pharma will have the rights to receive 100% of its royalties on net sales of Tremfya, 80% of future royalties and 100% of future milestone payments on otilimab, 60% of future royalties on gantenerumab, and 3% on future net sales of Constellation's clinical-stage assets.

MorphoSys said it expects to complete the acquisition of Constellation in the third quarter.  

June 2, 2021

https://www.marketwatch.com/