Dive Brief:
- 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.
Dive Insight:
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.