Exhibit 99.5
MorphoSys Announcement Employee Letter
To: All Colleagues
From: Jean-Paul Kress
Subject: MorphoSys Announces Acquisition of Constellation Pharmaceuticals
Dear Colleagues,
I am pleased to share some exciting news with you. Moments ago, MorphoSys announced an agreement to acquire Constellation Pharmaceuticals, a clinical-stage biopharmaceutical company focused on addressing serious unmet medical needs in patients with various forms of cancer. This transformational acquisition represents a major step forward for MorphoSys as we bolster our position in hematology-oncology and expand into solid tumors, further advancing our mission in the fight against cancer.
Based in Cambridge, Massachusetts, Constellation brings expertise in epigenetics with two lead product candidates, pelabresib (CPI-0610), a BET inhibitor, and CPI-0209, a second-generation EZH2 inhibitor. Both are in mid- to late-stage clinical trials and have broad therapeutic potential to offer meaningful benefits to patients with various hematological and solid tumors. Both pelabresib and CPI-0209 have broad potential and fit well with our proven clinical development, regulatory and commercial capabilities. We look forward to unlocking their full benefits for people living with cancer. Constellation also brings numerous complementary preclinical compounds targeting epigenetic regulators. Together, we will join forces and leverage our cutting-edge research capabilities to develop a broad range of next generation cancer therapies. Most importantly, Constellation is a great fit from a cultural perspective. Our teams are mission-driven and working toward a common goal of helping patients battling cancer.
In addition, we announced that we have entered into a long-term strategic funding partnership with Royalty Pharma, which has played a key role in the transformation and growth of numerous biotech companies. Under the terms of our partnership, Royalty Pharma is providing more than $2 billion to finance the transaction and accelerate our growth strategy in exchange for royalties on Tremfya® and potential future royalties and milestone payments from other products. Royalty Pharma will also become a shareholder in MorphoSys. This long-term commitment will help deliver significant value to all MorphoSys stakeholders.
Ultimately, our acquisition of Constellation accelerates our strategy to grow through proprietary drug development and commercialization, and in Royalty Pharma we will have a strong partner to support our growth for years to come.
While there are many reasons to be excited today, please keep in mind that this announcement is only the first step. There are still approvals required and conditions that must be satisfied before the transaction is completed, which we expect to occur in the third quarter of 2021. Until that time, MorphoSys and Constellation will continue to operate as separate companies, and it remains business as usual.
Following close, MorphoSys will remain headquartered in Munich, Germany, and will maintain a significant commercial and R&D presence in the Boston area.
We will be hosting a general meeting to walk you through the benefits of this transaction as well as answer any questions you may have. The invitation will follow shortly. In the meantime, we encourage you to review the attached FAQ as well as reach out to your manager if you have any immediate questions. In addition, it is important that we speak with one voice. If you receive any inquiries from media, analysts or investors, please send them to Thomas Biegi or Jeanette Bressi (Media) and Julia Neugebauer or Myles Clouston (Analysts/Investors). Similarly, to ensure compliance with certain regulations, please do not discuss the transaction on any social media platforms.