Novartis Sells German Company Morphosys Less Than a Year After Buying It

Novartis is cutting the slack. The Swiss pharmaceutical company is to sell off the business of German company Morphosys, less than a year after acquiring the company for 2.7 billion euros. The operation would correspond to a liquidation of the biotechnology company , according to WirtschafsWoche .

The move will affect 330 employees at Morphosys’ two factories in Germany and the United States. In November, Novartis made the decision to close the plants by the end of 2025 and integrate all the portfolio’s activities into Novartis.

In February, Novartis launched a voluntary takeover bid for Morphosys , a specialist in the development of oncology treatments. “With the acquisition of Morphosys, we aim to further strengthen our oncology portfolio by increasing our capabilities and expertise,” said Shreeram Aradhye, president of development and chief medical officer of Novartis, at the time of launching the takeover bid.

Novartis plans to integrate all activities into its portfolio with the closure of the two Morphosys factories in 2025

Three months later, the Swiss group completed the purchase of Morphosys, in a deal worth 68 euros in cash per share . The transaction was approved by 79.6% of the German biopharmaceutical company’s total share capital.

Novartis closed the 2023 financial year with profits of 7.88 billion euros, 41.7% more than the previous year. The company is confident that its sales will improve this year thanks to the revenue from drugs such as Cosentyx.

A few weeks ago, the Swiss company Novartis raised its growth forecasts , anticipating a 6% increase in its annual revenues until 2028. Novartis is confident of this progress thanks to the development of new products.

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(Featured image by Ola Ivashenko via Unsplash)

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