MorphoSys and Celgene call it quits
- After prematurely ending a cancer R&D partnership with Celgene, MorphoSys fell 20% to $59.16 per share.
- The agreement to terminate the partnership, which was initiated in June 2013, was mutual.
- The partnership was focused on developing MOR 202, for treatment of multiple myeloma. MorphoSys plans to continue development of MOR 202 without Celgene.
The Chief Development Officer of MorphoSys, Arndt Schotelins, conceded that R&D costs will rise without the Celgene partnership; however, the company still plans to move forward with development of MOR 202. Their efforts will be aided by a one-time payment from Celgene. MorphoSys expects to post earnings before income and taxes of $9.73 million to $17.31 million, instead of posting a loss.