Novartis closes Morphosys after takeover – 330 jobs affected

Location in Bavaria

Biotech company closes – 330 jobs affected

There was good news at the beginning of the year: the Bavarian company Morphosys was taken over for billions. Now comes the shock.

Just a few months after acquiring the German biotech company Morphosys, the Swiss pharmaceutical company Novartis announced that it would close the company's German and US locations by the end of 2025. The Swiss company confirmed this to “Wirtschaftswoche”. Around 330 jobs are affected. The decision followed shortly after the takeover, which was completed in early 2024 for 2.7 billion euros.

The closure hits the workforce and the Planegg region near Munich hard. Morphosys, founded in 1992, was considered one of the oldest and most successful German biotech companies. The rapid abandonment of the location creates security and raises questions about the future security of German companies in the industry.

Novartis cites problems with pelabresib, a drug used to treat a rare bone marrow disease, as the reason. Doubts about the effectiveness and safety of the drug led to a write-down of $800 million in November. However, the measures could also be defined as a strategic decision as part of a portfolio adjustment.

The rapid closure highlights the risks of international takeovers, particularly in the biotech sector. The influence of former Morphosys boss Simon Moroney, who now sits on the Novartis board of directors, remains unclear. The group did not comment on this. The decision leaves a gap in German biotechnology and raises questions about the regulation of these acquisitions.