MorphoSys consolidates, shuttering USA activities

Germany’s MorphoSys (FSE: MOR) said yesterday that it will account for a non-cash impairment charge on goodwill in the amount of approximately 231 million euros ($255 million).

This write-down results from the consolidation of the company's research and discovery activities after the acquisition of Constellation Pharmaceuticals. MorphoSys acquired US cancer drugmaker Constellation last June for $1.7 billion. The German firm’s shares were up more than 4% at 23.85 euros in early trading today.

MorphoSys decided to focus its research activities on the most advanced programs and to centralize all laboratory activities at its German research hub in Planegg, Germany. Consequently, all US-based activities relating to discovery biology and drug discovery departments were discontinued.