A brand new security threat associated to Morphosys’s (NASDAQ:MOR) pelabresib, an experimental remedy for myelofibrosis, may complicate the corporate’s deliberate $3B sale to Novartis (NYSE:NVS).
“Physicians concerned with MorphoSys’ accomplished Phase 3 examine have reported a number of instances of palebresib-treated sufferers who quickly progressed from myelofibrosis, a most cancers affecting the bone marrow, to acute myeloid leukemia,” according to the STAT report on Sunday, which cited two people with knowledge of the cases.
The Food and Drug Administration has issued a warning letter to all physicians involved in the study and the regulator is monitoring the situation, according to the report.
MorphoSys (MOR) didn’t immediately respond to Seeking Alpha email request for comment on Sunday.
A STAT report on Feb. 6 sent MorphoSys ADRs tumbling as much 7.8% before they ended the day positive after the publication claimed that Novartis may eventually look to exit the EUR2.7 billion deal if regulators fail to approve an application for the drug pelabresib.
The definitive merger agreement didn’t indicate that there are any carve outs for the deal related to pelabresib, which contradicted the STAT report.
MorphoSys told Bloomberg in a statement at the time that the STAT report was “factually improper.”