On March 10, 2022 MorphoSys AG (FSE: MOR; NASDAQ: MOR) reported that it will account for a non-cash impairment charge on goodwill in the amount of approximately € 231 million (Press release, MorphoSys, MAR 10, 2022, View Source [SID1234609873]). 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.

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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.