MOR - MorphoSys to recognize nearly Euro231M charge related to Constellation acquisition

German biotech, MorphoSys AG (MOR -2.8%) announced on Thursday that the company would report €231M worth of non-cash impairment charge on goodwill after the consolidation of its R&D activities following the acquisition of Constellation Pharmaceuticals last year. The move followed a portfolio reorganization at the company, where the management has stopped US-based activities related to discovery biology and drug discovery departments. Instead, MorphoSys (NASDAQ:MOR) has decided to focus on the most advanced programs and centralize all lab activities at the company’s German research hub in Planegg, Germany. “Therefore, early pipeline projects cannot be realized anymore and the expected cash flows from these projects will not materialize accordingly,” the company said in a regulatory submission. The company noted that the early pipeline was part of the goodwill relating to the acquisition. The charge will have no impact on cash. However, it will be added to the Group’s operating expenses for Q4

For further details see:

MorphoSys to recognize nearly €231M charge related to Constellation acquisition