UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14D-9
(Rule 14d-101)
(Amendment No. 1)
Solicitation/Recommendation Statement
Under Section 14(d)(4) of the Securities Exchange Act of 1934
MorphoSys AG
(Name of Subject Company)
MorphoSys AG
(Name of Persons Filing Statement)
Ordinary Shares, no par value
(Title of Class of Securities)
617760202
(CUSIP Number of Class of Securities)
Charlotte Lohmann
Member of the Executive Committee, Chief Legal and Human Resources Officer
Semmelweisstrasse 7
82152 Planegg
Germany
+49 89-89927-0
(Name, address, and telephone numbers of person authorized to receive notices and communications
on behalf of the persons filing statement)
With copies to:
Graham Robinson
Faiz Ahmad
Jan Bauer
Skadden, Arps, Slate, Meagher & Flom LLP
500 Boylston Street, 23rd Floor
Boston, Massachusetts 02116
(617) 573-4800
| ☐ | Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. |
This Amendment No. 1 (this “Amendment”) amends and supplements the Solicitation/Recommendation Statement on Schedule 14D-9 (as amended or supplemented from time to time, the “Schedule 14D-9”) filed by MorphoSys AG (“MorphoSys”) with the Securities and Exchange Commission (the “SEC”) on April 11, 2024, relating to the voluntary public cash takeover offer (the “Offer”) by Novartis BidCo AG (formerly known as Novartis data42 AG) (the “Bidder”), a wholly owned subsidiary of Novartis AG (“Novartis”), for all of the outstanding no-par value bearer shares of MorphoSys AG (“MorphoSys”), commenced pursuant to the Business Combination Agreement, dated February 5, 2024, among MorphoSys, Novartis and the Bidder.
Except to the extent specifically provided in this Amendment, the information set forth in the Schedule 14D-9 remains unchanged. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Joint Reasoned Statement filed as Exhibit (a)(2) to the Schedule 14D-9. This Amendment is being filed to reflect certain updates as set forth below.
Item 3. Past Contacts, Transactions, Negotiations and Agreements
Item 3 of the Schedule 14D-9 is hereby amended and supplemented by adding the following as a new paragraph following the current text:
As contemplated in Section 13.2 (Agreements with Members of the Management Board or Supervisory Board) of the Joint Reasoned Statement, included as Exhibit (a)(2) to the Schedule 14D-9, on April 15, 2024, MorphoSys and Dr. Kress entered into an amendment to Dr. Kress’ Service Agreement to extend the length of Dr. Kress’ non-compete covenant to twelve (12) months. The amendment to Dr. Kress’ Service Agreement is filed as Exhibit (e)(13) hereto and is incorporated herein by reference.
Item 9. Exhibits
Item 9 of the Schedule 14D-9 is hereby amended and supplemented by adding the following exhibit:
| Exhibit No. | Description | |
| (e)(13)* | Amendment Agreement, dated April 15, 2024, between MorphoSys AG and Jean-Paul Kress. | |
| * | Filed Herewith |
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SIGNATURES
After due inquiry and to the best knowledge and belief of the undersigned, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
| MorphoSys AG | ||||||||
| (Registrant) | ||||||||
| Dated: April 17, 2024 | ||||||||
| By: | /s/ Jean-Paul Kress | |||||||
| Name: | Jean-Paul Kress, M.D. | |||||||
| Title: | CEO, Member of Management Board | |||||||
| By: | /s/ Lucinda Crabtree | |||||||
| Name: | Lucinda Crabtree, Ph.D. | |||||||
| Title: | CFO, Member of Management Board | |||||||
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Exhibit (e)(13)
| MorphoSys AG Semmelweisstr. 7 82152 Planegg Germany | ||||
| Telefon: +49 (0)89 899 27-0 Fax: +49 (0)89 899 27-222 Email: info@morphosys.com Internet: www.morphosys.com | ||||
| Ergänzungsvereinbarung | Amendment Agreement | |
| zwischen | between | |
MorphoSys AG,
Semmelweisstr. 7
82152 Planegg
(„MorphoSys AG“ oder/or die „Gesellschaft“/the “Company”),
| vertreten durch den Aufsichtsrat, dieser vertreten durch seinen Vorsitzenden, Herrn Dr. Marc Cluzel, |
represented by the Supervisory Board, the Supervisory Board represented by its Chairman, Dr. Marc Cluzel, | |
| und | and | |
| Herrn | Mr. | |
Dr. Jean-Paul Kress
[***]
(„Herr Kress“/“Mr. Kress“ oder/or „Vorstandsmitglied“/“Executive“ und das Vorstandsmitglied gemeinsam mit der Gesellschaft die “Parteien“/ and the Executive together with the Company the „Parties“)
| Das Vorstandsmitglied ist mit Beschluss des Aufsichtsrats vom 14. Dezember 2021 vom 1. September 2022 bis zum Ablauf des 31. August 2025 zum Mitglied des Vorstands der Gesellschaft bestellt worden. Am 16. Dezember 2021 haben das Vorstandsmitglied und die Gesellschaft zudem einen entsprechenden Dienstvertrag geschlossen (einschließlich sämtlicher Änderungen und Ergänzungen der „Dienstvertrag“). Der Dienstvertrag soll nun angepasst werden. Dem Vorstandsmitglied sind mit Wirkung zum 22. Januar 2024 zudem Performance Share Units unter dem Performance Share Unit Program 2024 („PSUP 2024“) der Gesellschaft gewährt worden. Die Planbedingungen des PSUP 2024 sollen für das Vorstandsmitglied nun angepasst werden. Vor diesem Hintergrund vereinbaren die Parteien, was folgt: | By resolution of the Supervisory Board dated December 14, 2021, the Executive has been appointed as a member of the Management Board of the Company. On December 16, 2021, the Executive and the Company have entered into a corresponding service agreement (including all amendments and supplements the “Service Agreement”). The Service Agreement shall now be amended. With effect as of January 22, 2024, the Executive has been granted Performance Share Units under the Company’s Performance Share Unit Program 2024 (“PSUP 2024”). The terms & conditions shall now also be amended for the Executive. Against this background, the Parties agree as follows: |
| Vorstand Dr. Jean-Paul Kress (Vorsitzender), Dr. Lucinda Crabtree, Ph.D. Aufsichtsratsvorsitzender Dr. Marc Cluzel |
[***] |
| § 1 Änderung von § 5 des Dienstvertrags |
Sec. 1 Amendment of Sec. 5 of the Service Agreement | |
| (1) § 5 Abs. 4 des Dienstvertrags wird mit Wirkung ab dem 1. Januar 2024 wie folgt geändert: |
(1) Sec. 5 para. 4 of the Service Agreement shall be amended with effect as of January 1, 2024, as follows: | |
| „(4) Die Gesellschaft übernimmt gegen Nachweis die Kosten rechtlicher und steuerlicher Beratung, die dem Vorstandsmitglied im Zusammenhang mit diesem Dienstvertrag und – auch über das Ende der Vertragslaufzeit hinaus – dessen Abwicklung für die Zeiträume entstehen, in denen das Vorstandsmitglied für die Gesellschaft tätig war oder von der Gesellschaft eine Vergütung bezogen hat. Die Kostenübernahme ist begrenzt auf bis zu (einmalig) EUR 155.000,00 (netto).“ |
“(4) Against substantiation, the Company shall bear the costs for legal and tax advice rendered to the Executive in the context of this service agreement and – following the end of the period of this service agreement – for time periods during which the Executive rendered his services to or received a remuneration from the Company. This cost coverage shall be capped at a maximum (one-time) amount of EUR 155,000.00 (net).” | |
| (2) § 5 Abs. 5 des Dienstvertrags wird ersatzlos gestrichen. |
(2) Sec. 5 para. 5 of the Service Agreement shall be deleted without replacement. | |
| Im Übrigen bleibt § 5 des Dienstvertrags unberührt. | In all other aspects, Sec. 5 of the Service Agreement remains unaffected. | |
| § 2 Änderung von § 10 des Dienstvertrags |
Sec. 2 Amendment of Sec. 10 of the Service Agreement | |
| § 10 Abs. 1 Satz 1 erster Halbsatz des Dienstvertrags wird wie folgt geändert: | Sec. 10 para. 1 sentence 1 first half-sentence of the Service Agreement shall be amended as follows: | |
| „(1) Das Vorstandsmitglied verpflichtet sich, für die Dauer von 12 Monaten nach Beendigung des Dienstvertrags nicht für ein Unternehmen tätig zu werden, das mit der Gesellschaft unmittelbar oder mittelbar im Wettbewerb steht oder ein Verbundenes Unternehmen eines solchen Wettbewerbers ist (jeweils ein „Wettbewerber“), sei es […].“ |
“(1) The Executive undertakes for the duration of twelve months after the termination of the service agreement not to work for an enterprise that competes with the Company directly or indirectly, or which is an Affiliated Company of such competitor (each a “Competitor”), be it […].” | |
| Im Übrigen bleibt § 10 Abs. 1 Satz 1 sowie der übrige § 10 des Dienstvertrags unberührt. | In all other aspects, Sec. 10 para. 1 sentence 1 as well as the rest of Sec. 10 of the Service Agreement shall remain unaffected. | |
| § 3 PSUP 2024 |
Sec. 3 PSUP 2024 | |
| Abweichend von § 3.2, § 5.1 und § 5.2 der Planbedingungen des PSUP 2024 gilt Folgendes: | In deviation of Sec. 3.2, Sec. 5.1, Sec. 5.2 and Sec. 6.2 of the terms & conditions of the PSUP 2024, the following shall apply: | |
| Die dem Vorstandsmitglied gewährten Performance Share Units werden mit Wirkung zum Ablauf der Wartezeit (wie in § 3.1 der Planbedingungen des PSUP 2024 definiert) vollständig unverfallbar. Endet das Amt des Vorstandsmitglieds als Mitglied des Vorstands der Gesellschaft vor Ablauf der Wartezeit des PSUP 2024, gleich aus welchem Grund, verfallen alle dem Vorstandsmitglied unter dem PSUP 2024 gewährten Performance Share Units ersatzlos (d.h., es | The Performance Share Units granted to the Executive will vest in full with effect as of the end of the Waiting Period as defined in Sec. 3.1 of the terms & conditions of the PSUP 2024. In the event the Executive’s office as member of the Management Board of the Company ends prior to the expiry of the waiting period of the PSUP 2024, irrespective of the reason therefore, all Performance Share Units granted to the Executive under the PSUP shall forfeit without | |
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| kommt zu keiner anteiligen Unverfallbarkeit), sofern mit der Gesellschaft nichts Abweichendes vereinbart wird. Es wird klargestellt, dass § 13 Abs. 3 des Dienstvertrags auf das PSUP 2024 keine Anwendung findet. | entitlement to compensation (i.e., no proportional vesting occurs), unless otherwise agreed with the Company. It is clarified that Sec. 13 para. 3 of the Service Agreement shall not apply to the PSUP 2024. | |
| Die Gesellschaft wird die Performance Share Units innerhalb des Zeitraums erfüllen, der erforderlich ist, damit die Performance Share Units einen „kurzfristigen Zahlungsaufschub (short-term deferral)“ im Sinne von Abschnitt 409A des United States Internal Revenue Code darstellen. | The Company will settle the Performance Share Units within such period as is necessary so that the Vested PSUs constitute a “short-term deferral” for purposes of Section 409A of the United States Internal Revenue Code. | |
| Im Übrigen bleiben die Planbedingungen des PSUP 2024 unberührt. | In all other aspects, the terms & conditions of the PSUP 2024 remain unaffected. | |
| § 4 Schlussbestimmungen |
Sec. 4 Final provisions | |
| § 20 Abs. 1 Satz 2, Satz 3 und Abs. 5 Satz 1 des Dienstvertrags gelten entsprechend für diese Ergänzungsvereinbarung. | Sec. 20 para. 1, sentence 2, sentence 3 and para. 5 sentence 1 of the Service Agreement shall apply accordingly to this amendment agreement. | |
[Unterschriftenseite folgt / signature page follows]
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MorphoSys AG
Planegg, den / this April 15, 2024
| /s/ Jean-Paul Kress |
| Jean-Paul Kress |
| /s/ Marc Cluzel |
| (Aufsichtsrat der MorphoSys AG, vertreten durch seinen Vorsitzenden Dr. Marc Cluzel) |
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