Ad hoc: MorphoSys AG reports non-cash impairment charge of € 231 million on goodwill after consolidation of research and discovery functions; corresponding increase of Group operating expenses in 2021
MorphoSys AG / Key word(s): Miscellaneous
Publication of an inside information according to Article 17 para. 1 of the Regulation (EU) No 596/2014
Ad hoc: MorphoSys AG reports non-cash impairment charge of approx. € 231 million on goodwill after consolidation of research and discovery functions; corresponding increase of Group operating expenses in 2021
MorphoSys AG (FSE: MOR; NASDAQ: MOR) announces today that it will account for a non-cash impairment charge on goodwill in the amount of approximately € 231 million. This write-down results from the consolidation of the Company's research and discovery activities after the acquisition of Constellation Pharmaceuticals, Inc. ("Constellation"). 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. Therefore, early pipeline projects cannot be realized anymore and the expected cash flows from these projects will not materialize accordingly. Since the early pipeline was part of the goodwill resulting from the acquisition of Constellation, an impairment test was performed based on the latest cash flow projections, which triggered an impairment charge on the goodwill in the amount of € 231 million.
The write-down has no cash effect and will impact Group operating expenses for the fourth quarter of the year 2021. The write-down of € 231 million will be additive to the Group operating expenses which will be published on March 16, 2022 along with the full results for the fourth quarter and full year 2021.
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10-March-2022 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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