Constellation Pharmaceuticals, Inc. (NASDAQ: CNST) disclosed that it has inked a definitive merger agreement with MorphoSys AG (NASDAQ: MOR). As per the merger agreement, CNST will be acquired by MOR. It has been disclosed that MOR has bought CNST for $34.00 per share in cash, which signifies a total equity value of $1.7 billion.
The supervisory and management board of MOR has authorized the merger agreement. The board of directors of Constellation has also authorized the decision. The deal is anticipated to execute in the third quarter of 2021. The two top product candidates, pelabresib (CPI-0610), and CPI-0209, of CNST, are in mid-to-late-stage clinical studies.
Shares of Constellation Pharmaceuticals, Inc. (NASDAQ: CNST) surged 66.75% as the firm gained +13.51 during the trading session of Wednesday. The firm has recorded an average volume of 18.25 million as compared to the trading volume of 440.53K. The firm has reported the day low and high range of $33.69 and $33.77, respectively. Constellation Pharmaceuticals has a total market capitalization of $979.01 million at the time of writing.
Furthermore, this acquisition is the breakthrough for MOR as the firm is striving to strengthen its position in hematology-oncology. In addition to this, MorphoSys also inked a long-term strategic funding collaboration agreement with Royalty Pharma plc. Royalty Pharma will provide a $1.425 billion upfront payment to MorphoSys, backing its growth strategy. The profit will be used to back the funding of the Constellation transaction and the growth of the merged pipeline.