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Novartis’ $2.9 Billion Acquisition of MorphoSys – Merger Arbitrage Mondays

  • February 12, 2024
MorphoSys (MOR): $17.15 Market Cap: $2.60 billion Over the last few years, we have seen several transactions where a large pharma company acquires a clinical stage biotech company and especially one that is working on novel therapies to treat cancer. Last week was no exception with Novartis (NVS) announcing an all cash acquisition of MorphoSys (MOR) for a closing value of $2.90 billion or $18.28 per share. These kinds of deals – with few exceptions – usually tend to close quickly and don’t trade at large spreads. The MorphoSys deal was a little bit of an exception. This was the acquisition by a Swiss company of a German company that was listed both in Frankfurt and on the NASDAQ as an ADS. The acquisition price indicated in the press release announcing the transaction was 68 Euros. Four ADS in the U.S. equal one ordinary share on the Frankfurt exchange, which brings the value to 17 Euros per ADS. We used the Euro to U.S. dollar conversion rate of 1.075 on the day of the announcement to come up with a closing value of $18.28. I have included a screenshot of the deal below, and you can access all the details on our deal...

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