Shares of MorphoSys AG (MOR) are down more than 12% Wednesday morning.
Today, the company announced its decision to buy Constellation Pharmaceuticals, Inc., (CNST) for $1.7 billion or $34.00 per share in cash, a 68% premium to Constellation’s closing price as on June 1.
The acquisition adds two mid-to-late stage product candidates, CPI-0610 and CPI-0209 to MorphoSys’ pipeline.
The transaction is expected to close in the third quarter of 2021.
MorphoSys also announced that it has entered into a long-term strategic funding partnership with Royalty Pharma plc (RPRX), that will help the company to fund the transaction along with other benefits.
MOR touched a new low of $18.54, before climbing to trade at $19.40 currently.