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Tag: MorphoSys AG

  • MorphoSys AG (MOR): A Sinking Ship

    MorphoSys AG (NASDAQ: MOR) is a name that has been making the rounds quite a bit, throughout social media chatter. The last 12 months have been tough on the German biopharmaceutical, seeing a fall of 63%.

    Weakening MOR Fundamentals

    One reason as to why the stock has been the talk of the town is due to the continuously worsening financial results. Its earnings release consistently indicates that the fundamentals are in line with the broader bearish perception surrounding MOR in the market. Revenue in 2021 fell to almost half from $400 million in 2020, to a mere $204 million. This was in large part due to its foreign sales segment taking a 45% hit, which had severely disrupted the company’s financial performance. This was due to the supply chain disruptions that came about due to the Russian invasion of Ukraine, as well as subsequent sanctions on Russian exports. Moreover, inflationary pressures from the fallout from the Covid-19 pandemic exacerbate MOR’s operations further, which worsened the bearish sentiments around the stock.

    A Poor Buyout

    Despite all the challenges facing MOR, its single most devastating decision had been the full buyout of Constellation Pharma, which had terribly failed to live up to what the MorphoSys management anticipated. The deal was worth a whopping $1.7 billion, which makes its failure even more consequential to the future of the company. To put the figure into context, the current market capitalization stands at a mere $700 million. The decision saw heavy criticism, owing to it being highly overambitious, with shares crashing upon negative milestone updates. Much of the present woes facing the company can be attributed back to this one move by the company, which has sunk its sailing ship.

    Conclusion

    MorphoSys is facing an uphill battle, and things will only get tougher from here on. There is little positive catalysts that market participants can latch onto in the foreseeable future. The company would need to power through these uncertain times.

  • Here is why MorphoSys AG (MOR) facing headwinds in the pre-market on Tuesday?

    MorphoSys AG (MOR) shares lost 11.64% in Tuesday’s pre-market and were trading at $13.12, as of this writing. On Monday, in the after-hours, MOR’s stock lost 8.22%. MOR Stock shares have fallen 54.64% over the last 12 months, and they have moved down 9.23% in the past week. Over the past three months, the stock has lost 37.02%, while over the past six months, it has shed 50.15%.

    Let’s discuss its recent developments.

    MOR Stock 2021 financial guidance update

    On July 26, 2021 / MorphoSys AG provided an update of its financial guidance for 2021 after preliminary completion of the latest evaluation of MorphoSys’ half year 2021 financial performance.

    • MorphoSys now expects revenues in the range of € 155 to € 180 million compared to the previous outlook of € 150 to € 200 million, provided on March 15, 2021.
    • Total operating expenses are expected in the range of € 435 to € 465 million (previously: € 355 to € 385 million).
    • Net of Current Portion is reduced from € 547.6 million (balance as of March 31, 2021) to € 445.9 million (balance as of June 30, 2021).

    MOR Stock Upcoming financial results announcement

    MorphoSys AG (MOR) will announce its results for the second quarter and first half of 2021 on July 28, 2021, at 10:00 pm CEST (4:00 pm EDT).

    MorphoSys’ Management Board will host a conference call and webcast on July 29, 2021, at 2:00 pm CEST (8:00 am EDT).

    Expansion of MOR Stock share capital

    On July 16, 2021, MOR stock announced that its Management Board passed a resolution to increase the share capital of MorphoSys AG by issuing 1,337,552 new ordinary shares from the Authorized Capital 2021-II.

    The new ordinary shares represent 3.9% of the registered share capital of MorphoSys following the capital increase.

    Expiration of the Waiting Period for Acquisition of Constellation Pharmaceuticals

    On July 1, 2021, MorphoSys AG (MOR) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended for its tender offer for Constellation Pharmaceuticals, Inc.

    Background of Acquisition of Constellation Pharmaceuticals

    On June 16, 2021, MorphoSys AG (MOR) commenced a cash tender offer to purchase all outstanding shares of Constellation Pharmaceuticals, Inc for $34.00 per share, net to the seller in cash, without interest, and subject to any applicable withholding of taxes. The tender offer is being made according to the previously announced merger agreement, dated June 2, 2021, between MorphoSys and Constellation.

    On June 2, 2021, MorphoSys AG and Constellation Pharmaceuticals entered into a definitive agreement whereby MOR Stock will acquire Constellation for $34.00 per share in cash, which represents a total equity value of $1.7 billion.

    MOR and Incyte received positive CHMP Opinion

    On June 25, 2021, MorphoSys AG (MOR) and Incyte received a positive opinion from the European Medicines Agency’s Committee for conditional marketing authorization of tafasitamab in combination with lenalidomide, followed by tafasitamab monotherapy.

    Conclusion

    The recent 2021 financial outlook update is the reason behind MOR stock early morning bashing. The company has reduced the revenue figures and increased the expenses range for FY 2021 which took its stock towards the negativity.