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MorphoSys (NASDAQ: MOR) ADR increased by 5%canceling Tuesday’s declines, after that of Novartis (NYSE:NVS) the final merger agreement was made public, helping to debunk a rumor about the deal.
MorphoSys (MOR) sales agreement indicated that Novartis would have to pay a termination fee to pay MorphoSys is 100 million euros and the compensation that MorphoSys would pay is 50 euros, according to a regulatory filing on Wednesday.
A StatNews report on Tuesday sent MorPhoSys’ ADRs tumbling after it said Novartis could possibly seek to exit the €2.7 billion deal if regulators fail to approve an application for the drug pelabresib.
The definitive merger agreement does not indicate that there are any exceptions for the pelabresib deal, which contradicts the StatNews report.
MorphoSys told Bloomberg in a statement on Tuesday that the StatNews report was “factually incorrect.” A spokesperson for MorphoSys (MOR) and Novartis (NVS) told Stat News that its reporting was incorrect and that the deal is expected to close in the first half of the year.