Company Update May 22, 2013
Bio€quity Europe 2013
© MorphoSys - May 2013
Safe Harbour
© MorphoSys - May 2013
This presentation includes forward-looking statements.
Actual results could differ materially from those included in the forward-looking
statements due to various risk factors and uncertainties including changes in business,
economic competitive conditions, regulatory reforms, foreign exchange rate
fluctuations and the availability of financing.
These and other risks and uncertainties are detailed in the Company’s Annual Report.
2
MorphoSys: The Investment Case
© MorphoSys - May 2013
Technology-driven Alliances
Proven HuCAL platform
Major alliance with
Novartis
Ongoing investment in
new technologies
Broad Product Pipeline
21 clinical programs
Promising proprietary programs MOR103, MOR202, MOR208
Multiple clinical read-outs pending
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Financially Strong
Secure cash-flows
Strong balance sheet
Innovative Product Pipeline
© MorphoSys - May 2013 4
80 Therapeutic Antibody Programs
21 Clinical Programs
© MorphoSys - May 2013
Program Partner Target Indication Discovery Preclinic Phase 1 Phase 2 Phase 3
Gantenerumab Roche Amyloid-ß Alzheimer’s Disease
MOR103
(2 programs) - GM-CSF
Rheumatoid Arthritis
Multiple Sclerosis
Guselkumab (CNTO1959)
(2 programs) Janssen/J&J IL23p19
Psoriasis
Rheumatoid Arthritis
BHQ880 Novartis DKK-1 Cancer
BYM338 Novartis ActRIIB Musculoskeletal
NOV – 3 Novartis - not discl.
LFG316 Novartis C5 Ophthalmology
OMP-59R5 OncoMed/GSK Notch 2 Cancer
MOR208 - CD19 CLL, NHL, ALL
MOR202 - CD38 Multiple Myeloma
BAY94-9343 Bayer Healthcare Mesothelin (ADC) Cancer
BI – 1 BI - not discl.
CNTO3157 Janssen/J&J - Asthma
CNTO – 5 Janssen/J&J - Inflammation
VAY736 Novartis BAFF-R Inflammation
LJM716 Novartis HER3 Cancer
Vantictumab (OMP-18R5) OncoMed/Bayer Fzd 7 Cancer
PFE – 1 Pfizer - Cancer
NOV - 7 Novartis - Ophthalmology
21 Programs Various Partners - Various Indications
38 Programs Various Partners - Various Indications 73 Partnered Programs
7 Proprietary Programs
5
MOR103
A Novel Anti-Inflammatory Antibody
© MorphoSys - May 2013
Large Market and Unmet Need in Rheumatoid Arthritis
Approved biologics, mostly anti-TNF therapies, generate $20bn
in annual sales
30-40% of patients do not adequately respond to anti-TNFs
50% of responders stop responding within 2 years
MOR103
Ultra-high affinity HuCAL IgG1 targeting GM-CSF
Potential for superior efficacy and better safety than current
treatments
Intellectual Property
Exclusive license to a US patent covering anti-GM-CSF antibodies
for the treatment of chronic inflammatory conditions
US patent on MOR103 composition of matter
6
7.4
25.0
68.2
30.4
0
10
20
30
40
50
60
70
80
Week 4
Placebo
MOR103 0.3mg/kg
MOR103 1.0mg/kg
MOR103 1.5mg/kg
MOR103 Shows Impressive Efficacy, Fast Onset
of Action & Clean Safety Profile
© MorphoSys - May 2013
ACR20 Response at week 4*
% o
f pati
ents
* Full Analysis Set, N= 96
p<0.0001 Efficacy
ACR20 ranks amongst highest observed
for a biologic in RA after 4 weeks
1.0 mg/kg dose cohort shows efficacy
potential
Imaging confirms anti-inflammatory
activity
Safety
Related adverse events more frequent
in placebo group than in active
treatment group
Majority of AEs were of mild intensity
No treatment-related SAEs in the
active treatment groups
7
MOR103
Looking Ahead
© MorphoSys - May 2013
Rheumatoid arthritis
Expect even higher efficacy on
longer treatment
development in moderate to severe patients
Potential for monthly or even less frequent dosing
Multiple sclerosis
Phase 1b study in MS patients ongoing
GM-CSF is the only non-redundant inflammatory cytokine in EAE
Major unmet need in progressive forms of the disease
Subcutaneous formulation
Phase 1 study in healthy volunteers shows good PK and bioavailability
Partnering
Negotiations ongoing
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MOR208 (XmAb5574)
A Novel Anti-Cancer Antibody
© MorphoSys - May 2013
Large Market and Unmet Need
Large unmet medical need in NHL, CLL & ALL
Revenues with approved drugs for B cell malignancies
exceed $5bn
MOR208
Anti-CD19 antibody in-licensed from Xencor
CD19 expressed earlier than CD20 potential greater
efficacy vs. anti-CD20s
Proprietary modification in Fc region increased
ADCC rapid & sustained B-cell depletion
Minor modification means convenient dosing schedule,
straightforward manufacturing
Blinatumomab data validate CD19 as target for B-cell
malignancies
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MOR208
Phase 1/2a Trial in CLL/SLL
© MorphoSys - May 2013
Trial Design
Phase 1, multi-center, US study in heavily pre-treated, relapsed
or refractory CLL/SLL patients
Dosage 0.3 mg/kg - 12 mg/kg; days 1&4, weeks 2-8
Results
Acceptable safety profile
Responses observed in 67% of patients by physical exam
4/27 (15%) partial responses and 20/27 (74%) patients with
stable disease (IWCLL 2008 criteria including CT)
Full results from trial extension expected around mid-year 2013
Phase 2
Phase 2 trials in ALL and NHL ongoing
Combination therapy study in CLL being considered
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MOR202
A Novel Antibody for Multiple Myeloma
© MorphoSys - May 2013
Large Market and Unmet Need
Revenues with approved drugs in MM exceed $2bn
Responders eventually relapse or become refractory to existing
therapies
MOR202
High affinity HuCAL antibody targeting CD38
Competitive Profile
Preclinical data show strong synergy in combinations of MOR202
with Velcade or Revlimid
New pre-clinical data presented at ASH
Clinical Development
Phase 1/2a clinical trial in relapsed or refractory MM patients
currently ongoing
82 patients, at sites in Germany and Austria
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Gantenerumab: A HuCAL Antibody Being
Developed by Roche for Alzheimer’s Disease
© MorphoSys - May 2013
Large Market and Unmet Need
Alzheimer’s disease is estimated to affect 25 million people worldwide
Increasing with aging population
Once symptoms for AD dementia have appeared, it may be too late to treat
Picture: Courtesy of Roche
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Gantenerumab: The Most Advanced Antibody in
Development for Alzheimer’s Disease
© MorphoSys - May 2013
Gantenerumab
High affinity HuCAL antibody targeting amyloid-β
Binds & breaks down amyloid-β fibrils and plaques
Clinical Development
Phase 1: gantenerumab reduces brain amyloid 3x
faster than other amyloid-targeting substances
Potentially pivotal Phase 3 study ongoing
770 prodromal patients, 2 doses, placebo-
controlled
104 weeks on drug
CDR-SOB, ADAS-COG, change in brain amyloid
Roche have hinted at conducting an interim
analysis in 2013
Data from Phase 1
Effect of gantenerumab on
amyloid load as indexed by PET
SUVR at end of treatment
% A
mylo
id c
hange
from
base
line
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Technology-driven Alliances
© MorphoSys - May 2013 14
Proprietary Technology Platform Underpins
Lucrative Alliances
© MorphoSys - May 2013
MorphoSys has successfully partnered its human antibody technology HuCAL with many
of the leading pharmaceutical companies
Lucrative model
Makes MOR cash-flow positive
Funds proprietary R&D
Future upside from milestones & royalties
Pharma partner
Target
HuCAL antibody drug
candidate
R&D funding
Technology licence fees
Milestones and royalties
15
New Technology
1. Slonomics & Ylanthia
© MorphoSys - May 2013
Slonomics
Best technology for protein libraries
secured in Sloning acquisition
Deals have already paid for acquisition Pfizer, Novozymes, unnamed pharma
Ylanthia
Totally new antibody platform
Higher quality antibodies, greater
diversity faster lead generation
US patent granted January 2013
16
New technologies now part of expanded Novartis strategic alliance
Through 2017: EUR 20m annual license fees; EUR 20m FTE funding;
milestones; royalties
MOR free to partner platform broadly
New Technology
2. Antibodies Targeting GPCRs
© MorphoSys - May 2013 17
G-Protein Coupled Receptors comprise the most important
drug target class
Over 25% of approved drugs hit GPCRs
Only one marketed antibody targets a GPCR
No reliable method of making antibodies against GPCRs
Collaboration with Heptares
MorphoSys secures access to stabilized GPCRs produced by
Heptares
MorphoSys will make and offer antibodies against GPCRs
Heptares option on antibody program
UK-based GPCR drug
discovery and
development company
Proprietary StaR®
technology platform
generates stabilized
receptors
Opens way to reliable
anti-GPCR antibody
generation
New Technology
3. Lantipeptides
© MorphoSys - May 2013 18
Lantipeptides
Cyclic peptides made in bacteria
Rigidity improves binding characteristics, proteolytic
stability
Collaboration with Lanthio Pharma
MorphoSys will develop lantipeptide libraries for drug
discovery; preferred rights to exclusive licence
Complements antibody capability
MorphoSys has minority equity position in Lanthio Pharma
Groningen, Holland-
based start-up
Focused on
lantipeptides
Lantipeptides are
constrained peptides
showing high target
selectivity and
improved drug-like
properties
Strong Financials
© MorphoSys - May 2013 19
Key Financials
© MorphoSys - May 2013
in € million Q1 2013 Guidance 2013
Group Revenues 16.9 48 – 52*
Total Operating Expenses 14.6 70 - 74
thereof Investment in Proprietary R&D 7.0 32 to 37
EBIT 1.9 -18 to -22*
Cash & Marketable Securities and Interest-bearing
Assignable Loans as of March 31, 2013 177.4
* Does not include out-licensing of MOR103, which could lead to significant
out-performance
Sale of AbD Serotec to BioRad completed January 10, 2013, for approx. € 53 million
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Shareholdings
© MorphoSys - May 2013 21
52%
6%
20%
18,5%
Institutional Investors - 52%
Novartis - 6%
Treasury Stock - 1.5%
Management & Supervisory Boards - 2%
Retail Investors - 20%
Unidentified Investors - 18.5%
2% 1.5%
Geographic Split of Institutional Holdings
USA: 58%
Scandinavia: 12%
United Kingdom: 10%
Switzerland: 7%
Benelux: 6%
Germany: 5%
MorphoSys AG (FSE: MOR, Prime Standard, TecDAX
Shares issued: 23,358,228 (March 31, 2013) / Treasury stock: 339,890 (May 2, 2013)
Shareholdings by Investor Type
Expected Progress in Proprietary Portfolio 2013
© MorphoSys - May 2013 22
MOR103
Partnership for further development
Multiple sclerosis Phase 1b study continues
MOR208
ALL Phase 2 study to commence
NHL Phase 2 study to commence
Clinical data from Phase 1b extension
MOR202
MM Phase 1/2a study continues
First clinical data expected
Partnership
Clinical data
Clinical data
2013
Clinical Trials Scheduled for Completion
© MorphoSys - May 2013
BYM338
COPD
BYM338
Cancer
Potential data events based on clinical trial design & MorphoSys estimates
BYM338
Sarcopenia
BHQ880
Smoldering MM
MOR208, B-ALL
Phase 2
LFG316
MCP
LFG316
AMD
NOV-3
Phase 2
CNTO1959
RA versus Stelara
LFG316
AMD
LFG316
AMD
CNTO1959
Psoriasis
LJM716
Combo
LJM716
Single
OMP-59R5
Solid Tumors
BI-1
Phase 1
BI-1
Phase 1
CNTO1959
Psoriasis / Japan
BAY94-9343
Solid Tumors
Gantenerumab
Liquid vs. Lyophilized
Gantenerumab
Japanese AD Patients
OMP-18R5
Solid Tumors
NOV-3
Phase 2
NOV-3
Phase 2
MOR208, CLL
Phase 1/2a Extension
Gantenerumab
Phase 2/3 interim
23
MOR103, MS
Phase 1b
Phase 3
Phase 2
Phase 1
Partnered
Proprietary
Phase 2
Phase 1
2013 2014 H2 2012
HuCAL®, HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay®, RapMAT®, arYla® , Ylanthia® and 100 billion high potentials® are registered trademarks of MorphoSys AG.
Slonomics® is a registered trademark of Sloning BioTechnology GmbH, a subsidiary of MorphoSys AG.
Dr. Claudia Gutjahr-Löser
Head of Corporate Communications & IR
Phone +49 (0)89 / 899 27-122
Fax +49 (0)89 / 899 27-5122
Email [email protected]
Thank You
www.morphosys.com