Novartis agreed late Monday to buy German drugmaker MorphoSys for roughly $2.9 billion, and the biotech stock catapulted to a nearly three-year high.
The deal centers on MorphoSys' cancer treatments, including an experimental drug called pelabresib. Pelabresib is in late-stage testing as a treatment for myelofibrosis. Morphosys is also testing another drug, dubbed tulmimetostat, for solid tumors and lymphomas.
Ahead of the stock market's close, MorphoSys stock rocketed 56%.
Separately, Incyte announced it acquired exclusive rights to a drug it developed with MorphoSys known as tafasitamab. It already sells under the brand names Monjuvi and Minjuvi as a treatment for some lymphomas. Incyte will pay MorphoSys $25 million for the exclusive right to develop and sell tafasitamab worldwide.
In after-hours trading on today's stock market, MorphoSys stock rose another 1.1% to 17.46. The biotech stock has a perfect Relative Strength Rating of 99, meaning shares rank in the top 1% of all stocks, according to IBD Digital.
Novartis stock advanced 1.3% to 104.82. Incyte stock dipped a fraction to 58.03.
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