- Constellation Pharmaceuticals (NASDAQ:CNST) has climbed ~58.5% in the pre-market after announcing an agreement with MorphoSys AG (NASDAQ:MOR) whereby MorphoSys will acquire Constellation for $34.00 per share in cash for a total equity value of ~$1.7B.
- Per the terms of the agreement, which is expected to close in Q3 2021 MorphoSys will make a tender offer to acquire all of the outstanding shares of Constellation’s common stock at $34.00 per share in cash indicating a premium of ~70% to Constellation’s volume-weighted average price over the last five trading days.
- After the close of the deal, MorphoSys will remain headquartered in Munich, Germany with a significant commercial and R&D presence in Boston, Massachusetts, the companies said.
- In addition, MorphoSys also announced a long-term strategic funding partnership with Royalty Pharma subject to the closing of the transaction with Constellation.
- Per the terms of the licensing deal, Royalty Pharma is expected to make a $1.425B upfront payment to MorphoSys with ~$150M of additional milestone payments.
- Constellation Pharma with its current low prices is “a speculative bet,” Seeking Alpha contributor Avisol Capital Partners noted in a bullish thesis on the stock in January.
MorphoSys to acquire Constellation Pharma for $1.7B in cash
This was corrected on 06/12/2022 at 4:38 PM. The headline of the article was corrected to reflect that the Constellation was acquired by MorphoSys.