The announcement by Novartis to purchase MorphoSys for close to $3 billion is now null and void. Novartis has indicated that it will back out of the deal in the coming months, and is willing to pay a small fee to MorphoSys to terminate the acquisition. The reason for this decision is the rejection of a drug for myelofibrosis by regulators. While Novartis will brush off this situation relatively unharmed, MorphoSys and the drug pelabresib face an uncertain future. This conclusion is drawn from discussions with individuals knowledgeable about pelabresib and the internal deliberations at Novartis regarding the MorphoSys purchase, who have chosen to remain anonymous.
