january 7-11, 2018 engineering the medicines of tomorrow · cr, complete response; ne, not...

Engineering the Medicines of Tomorrow

Company Update

January 7-11, 2018

This presentation includes forward-looking statements.

© MorphoSys AG, Company Update – January 2018

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.

The compounds discussed in this slide presentation are investigational

products being developed by MorphoSys and its partners and are not currently

approved by the U.S. Food and Drug Administration (FDA), European Medicine

Agency (EMA) or any other regulatory authority (except for

guselkumab/Tremfya®).

2

Investment Highlights

© MorphoSys AG, Company Update – January 2018 3

*Probability of success cannot be predicted

Pipeline

Leading antibody platform:

over 100 active programs*,

28 in clinic

Tremfya®

Potential blockbuster,

offers lucrative royalty

opportunity

MOR208

Late-stage, proprietary

candidate with promising

data in DLBCL

Partnered Discovery

Maximizing utilization of technology

Lucrative source of revenue from licence

fees, milestones & royalties

Proprietary Development

Focus on oncology/inflammation

Retained rights translate into greater

revenue potential

Business ModelBuilding a Commercial, Product-Based Biopharmaceutical Company


Value

Time

Partnered

Discovery

Proprietary

Development

Our Clinical Pipeline28 Product Candidates in Clinical Development, First Product Launched


Program Partner Target Disease area Phase 1 Phase 2 Phase 3 Launched

Tremfya® (Guselkumab) Janssen IL-23p19 Psoriasis

Gantenerumab Roche Amyloid-ß Alzheimer’s disease

MOR208 - CD19 DLBCL, CLL/SLL

Anetumab Ravtansine (BAY94-9343) Bayer Mesothelin (ADC) Solid tumors

BHQ880 Novartis DKK-1 Multiple myeloma

Bimagrumab (BYM338) Novartis ActRIIB Musculoskeletal diseases

BPS804 Mereo/Novartis Sclerostin Brittle bone syndrome

CNTO6785 Janssen - Inflammation

Elgemtumab (LJM716) Novartis HER3 Cancer

MOR103/GSK3196165* GSK GM-CSF Inflammation

MOR202 I-Mab Biopharma** CD38 Multiple myeloma

Tesidolumab (LFG316) Novartis C5 Eye diseases

Utomilumab (PF-05082566) Pfizer 4-1BB Cancer

VAY736 Novartis BAFF-R Inflammation

Xentuzumab (BI-836845) BI IGF-1 Solid tumors

BAY1093884 Bayer TFPI Hemophilia

MOR106 Galapagos IL-17C Inflammation

MOR107 (LP2-3) Lanthio Pharma AT2-R Not disclosed

NOV–7 Novartis - Eye diseases

NOV–8 Novartis - Inflammation

NOV-9 Novartis - Diabetic eye diseases

NOV-10 Novartis - Cancer

NOV-11 Novartis - Blood disorders

NOV-12 Novartis - Prevention of thrombosis

NOV-13 Novartis - Cancer

NOV-14 Novartis - Asthma

PRV-300 (CNTO3157) ProventionBio TLR-3 Inflammation

Vantictumab (OMP-18R5) OncoMed Fzd 7 Solid tumors

12

13

2

*MOR103/GSK3196165 is fully outlicensed to GSK.

** For development in Greater Chinese Market (China, Hong Kong, Taiwan, Macao)

Partnered Discovery Programs

Proprietary Development Programs

MOR208: Proprietary Antibody in Hematological CancersAn Investigational Anti-CD19 Program for B Cell Malignancies


W Jurczak et al.; ASH 2016

The Drug Candidate

IgG1 kappa antibody targeting CD19

In-licensed from Xencor

Fc-engineered to enhance target cell-killing

Mode of Action

ADCC, phagocytosis, direct cytotoxicity

Strong Preclinical Package

Depletes B cells in in vitro and in vivo models

Rationale for multiple combination therapies

MOR208

Fc-enhancement

ADCC

ADCP

directcytotoxicity

ADCC: Antibody-Dependent Cell-Mediated Cytotoxicity

ADCP: Antibody-Dependent Cell-Mediated Phagocytosis

MOR208: Clinical Development PlanOpportunity Across Spectrum of B Cell Malignancies


Indication 2016 2017 2018 2019 2020

DLBCL

L-MIND

TRIAL

B-MIND

TRIAL

COSMOS

TRIAL

CLL

FDA Breakthrough

Therapy Designation

Lenalidomide + MOR208 in R/R DLBCL*

* Patients ineligible for high-dose chemotherapy and autologous stem-cell transplantation

Bendamustine + MOR208 vs. bendamustine + rituximab in R/R DLBCL*

MOR208 + idelalisib in R/R CLL BTKi-failures

MOR208 + venetoclax in R/R CLL BTKi-failures

Phase 2

Phase 3

MOR208: L-MIND Trial Response RatesMOR208 + Lenalidomide: ORR of 52% in a Phase 2 Study in R/R DLBCL Patients


*Differences due to rounding. R/R= relapsed/refractory; DLBCL = Diffuse Large B cell Lymphoma

CR, complete response; NE, not evaluable; ORR, objective response rate; PD, progressive disease; PR, partial response; SD, stable disease

Single-Arm phase 2 study of MOR208 combined with lenalidomide in patients with R/R DLBCL: L-MIND, ASH Abstract 2017 as of November 1, 2017.

CR: 32% (n=14)

PR: 20% (n=9)

SD: 14% (n=6)

NE: 14% (n=6)

0

20

40

60

80

100

n=44

Objective response

rate (ORR): 52%Best

Overa

ll R

esp

onse

(%

)* PD: 21%

(n=9)

MOR208: L-MIND Data in PerspectiveDuration of Response: Median Progression-Free Survival (PFS)*


* Note limitations of cross-trial comparisons; ** Preliminary data; RTX, Rituximab; BEN, bendamustine

3.2

3.7

5.8

6.7

11.3

0 2 4 6 8 10 12

MOR208 + lenalidomide**

Polatuzumab + RTX + BEN

Axi-CEL (CAR-T)

RTX + BEN

CTL019 (CAR-T)

Median PFS (months)

L-MIND Salles et al. 2017

Sehn et al., 2017

ZUMA-1, Neelapu et al, 2017

Dang et al., 2014

JULIET, Schuster et al., 2017

MOR202: Proprietary Anti-CD38 AntibodyAn Antibody for Multiple Myeloma & Potentially Other Cancers


The Drug Candidate

Developed to target a unique epitope on

CD38

ADCC & ADCP cell-killing mechanisms

Low NK cell depletion, which may translate

into longer duration of response

Clinical*

Efficacy

Responses ongoing in 65% of patients

Patient with longest time on study with

ongoing response: >22 months

Infusion time of 2h, shorter time being

explored

Potentially opportunities in other oncology

indications and auto-immune diseases

*From ongoing phase 1/2a trial: Raab et al., Poster presentation at ASCO, June 5, 2017: Abstract #8024

ADCC: Antibody-Dependent Cell-Mediated Cytotoxicity

ADCP: Antibody-Dependent Cell-Mediated Phagocytosis

ADCC

ADCP

MOR202: Efficacy EvaluationComparison of Response Data Among Study Cohorts


CR, complete response; NE, not evaluable; ORR, objective response rate; PD, progressive disease; PR, partial response; SD, stable disease;

VGPR, very good partial response; MR, marginal response; modified from Raab et al, ASCO 2017; ITT population shown

MOR202q1w + POM/DEX cohortsMOR202q1w + DEX cohorts MOR202q1w + LEN/DEX cohorts

VGPR: 11%

PR: 17%

MR: 11%

SD: 50%

PD: 6%

NE: 6%

n=18

ORR:

28%

Best

Overa

ll R

esp

onse

s (%

)

CR: 6%

VGPR: 18%

PR: 47%

SD: 6%

PD: 6%

NE: 18%

n=17

ORR:

71%

CR: 15%

VGPR: 8%

PR: 23%

MR: 23%

PD: 8%

NE: 15%

n=13

SD: 8%

ORR:

46%

100

80

60

40

20

0

MOR202: First Partnering DealAgreement with I-MAB Biopharma for Greater Chinese Market


Agreement signed November 30, 2017

I-MAB receives exclusive development and

commercialization rights in China, Taiwan,

Hong Kong and Macao

Payments to MorphoSys

$20 million upfront

Up to $100 million milestones

Tiered, double digit royalties

I-MAB’s head of R&D was formerly

responsible for the clinical development of

Daratumumab in China as Janssen China’s

head of development

MOR106: Phase 1 Study in Atopic DermatitisFirst Signs of Clinical Activity


*Patients with moderate-to-severe atopic dermatitis

The Drug Candidate

Ylanthia antibody against IL-17C, 50/50 co-development with Galapagos

Clinical

Top line results published end of September 2017:

No clinically relevant safety signals

At the highest dose level, 5 out of 6 patients (83%) reached an improvement of at least

50% in atopic dermatitis symptoms (EASI-50) by week 4

Results support progression to Phase 2 study

Single

ascending

dose

Multiple

ascending

dose

Healthy males, 7 cohorts, i.v. infusion (n=42)7-week

follow up

11-week

follow up

Placebo (n=14)

Patients*, 3 cohorts, weekly i.v. infusion for 4 weeks (n=18)

Placebo (n=6)

Partnered Discovery Program: Tremfya® (Guselkumab)Developed by Janssen in Inflammatory Indications

14© MorphoSys AG, Company Update – January 2018

The Drug

First-in-class IL-23-specific HuCAL antibody

Status

Approved in U.S., EU, Canada for moderate-to-severe

psoriasis

First royalties will be reflected in FY 2017 results

Differentiation

Compelling clinical efficacy

Convenience: 8-weekly s.c. dosing

Phase 3 Trials Ongoing

Head-to-head vs. Cosentyx® in psoriasis: ongoing

Psoriatic arthritis: 2 trials ongoing

Crohn’s disease: planned

Financial Guidance 2017* Updated November 30, 2017

*Guidance for revenues and EBIT includes royalty income on Tremfya® sales in Q3 2017. Royalty income based on Tremfya® sales in Q4 2017 will be booked in Q1 2018.

15

In € millionQ1-Q3 2017 Guidance 2017

(Issued March 9, 2017)

Guidance 2017 (Updated Nov. 30, 2017)

38.6 46 to 51 63 to 66

80.5 85 to 95 96 to 100

(53.8) (75) to (85) (66) to (71)

319.5 -

Group Revenues

Proprietary R&D Expenses

(incl. Technology Development)

EBIT

Cash, cash equivalents & marketable

securities as well as other short-term

and long-term financial assets

(end of reporting period)


Total shares issued (as of December 31, 2017): 29,420,785

MorphoSys is listed on the Frankfurt Stock Exchange under the symbol MOR


Proprietary Portfolio: Expected Newsflow 2018

Compound Indication Expected Newsflow

MOR208 DLBCLL-MIND: Updated development plan following BTD

interactions with FDA, Q1 2018

CLL COSMOS: Phase 2 data – mid 2019

MOR202

(I-MAB Biopharma*)Multiple myeloma

Further partnering discussions ongoing

Final data phase 1/2a study – late 2018

MOR106 Atopic dermatitis Start of phase 2 trial – Q2 2018

MOR103/

GSK3196165**Rheumatoid arthritis Data from phase 2b trial

Hand osteoarthritis Data from phase 2a trial

* For development in Greater Chinese Market (China, Hong Kong, Taiwan, Macao) **MOR103/GSK3196165 is fully outlicensed to GSK.

Phase 2 Phase 3

BSP804

Type I, III or IV Osteogenesis Imperfecta

(ASTEROID)

BSP804

Type I, III or IV Osteogenesis Imperfecta

(METEOROID)

Gantenerumab

Mild Alzheimer's disease

(open label extension)

Bimagrumab (BYM338)

Muscular atrophy after hip fracture surgery

Bimagrumab (BYM338)

Sarcopenia

Guselkumab

Pustular or Erythrodermic psoriasis

Tesidolumab (LFG316)

Geographic atrophy

(+ CLG561)


Panuveitis

Guselkumab

Moderate to severe plaque psoriasis


Paroxysmal nocturnal hemoglobinuria

VAY736

Rheumatoid arthritis

Guselkumab


(ECLIPSE; Head-to-head with Cosentyx®)

VAY736

Primary Sjögren's syndrome

VAY736

Pemphigus vulgaris

Guselkumab


(POLARIS; Comparison to Fumaric Acid

Esters)

Xentuzumab (BI-836845)

Prostate cancer (+ enzalutamide)

Xentuzumab (BI-836845)

Breast cancer

Guselkumab

Palmoplantar pustulosis

Guselkumab

Severe plaque psoriasis

Partnered Pipeline: Expected Primary Completion DatesUp to 19 Clinical Phase 2 and 3 Read-outs Potentially Due in 2018*


*Anticipated primary completion dates, according to clinicaltrials.gov

Our Future

18© MorphoSys AG, Company Update – January 2018

A fully-integrated

biopharmaceutical company

Attractive partner for big pharma

and biotech

Innovative science and technology

driving expansion of proprietary

portfolio

Commercializing own products in

selected geographies

Lucrative milestone & royalty

streams from deep partnered

pipeline

www.morphosys.com

Thank You

MOR208, MOR202, MOR106, MOR103, anetumab ravtansine, gantenerumab and all other product candidates mentioned here are investigational drugs and have not been

approved by the FDA or other ex-US regulatory agencies. HuCAL® , HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay®, RapMAT®, arYla®, Ylanthia®, 100 billion high

potentials®, Slonomics®, Lanthio Pharma® and LanthioPep® are registered trademarks of the MorphoSys Group. Tremfya® is a trademark of Janssen Biotech, Inc.

Anke Linnartz

Head of Corporate Communications & IR

Phone +49 (0)89 / 899 27-404

Fax +49 (0)89 / 899 27-5404

Email [email protected]

january 7-11, 2018 engineering the medicines of tomorrow · cr, complete response; ne, not...

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