MorphoSys to Acquire Constellation Pharma at $34/Share; Enters $2B Strategic Funding with Royalty Pharma

MorphoSys AG MOR has agreed to acquire Constellation Pharmaceuticals Inc CNST for $34/share in cash, representing a total equity value of $1.7 billion.
The transaction is expected to close in the third quarter of 2021.
The purchase price of $34.00 per share in cash represents a premium of approximately 70% to Constellation's volume-weighted average price for the last five trading days.
Constellation is a clinical-stage biopharmaceutical company using its expertise in epigenetics to discover and develop novel therapeutics for cancer.
Constellation's two lead product candidates, pelabresib (CPI-0610), a BET inhibitor, and CPI-0209, a second-generation EZH2 inhibitor, are in mid-to late-stage clinical trials.
MorphoSys has also entered into a long-term strategic funding partnership with Royalty Pharma plc RPRX for an upfront payment of $1.425 billion.
The proceeds will be used to support the financing of the Constellation transaction and the development of the combined pipeline.
Royalty Pharma will also provide MorphoSys with access to up to $350 million in Development Funding Bonds with the flexibility to draw over one year.
MorphoSys will receive additional payments of up to $150 million in milestone payments.
MorphoSys will host a conference call and webcast to discuss the transaction today at 8:00 a.m. ET.
Price Action: CNST shares are up 66.7% at $33.73, while MOR shares are down 14.4% at $18.91 during the premarket session on the last check Wednesday.