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Company Update September 24, 2013
Berenberg and Goldman Sachs
Second German Corporate Conference
© MorphoSys - September 2013
Safe Harbour
© MorphoSys - September 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
Highlights
© MorphoSys - September 2013
Strong Financial Performance
Recurring cash-flows
Sale of AbD, GSK & Celgene deals
Two Major Alliances for Proprietary Antibodies
Alliance with Celgene for co-development & co-promotion of MOR202
Successful out-licensing of MOR103 to GSK
Pipeline Progress
21 programs in clinical development
3
Innovative Product Pipeline
© MorphoSys - September 2013 4
The MorphoSys Pipeline
21 Clinical Programs, 81 Total
© MorphoSys - September 2013
Program Partner Target Indication Discovery Preclinic Phase 1 Phase 2 Phase 3
Gantenerumab Roche Amyloid-ß Alzheimer’s Disease
MOR103
(2 programs) GSK GM-CSF
Rheumatoid Arthritis
Multiple Sclerosis
Guselkumab (CNTO1959)
(2 programs) Janssen/J&J IL23p19
Psoriasis
Rheumatoid Arthritis
BHQ880 Novartis DKK-1 Cancer
Bimagrumab (BYM338) Novartis ActRIIB Musculoskeletal
NOV – 3 Novartis - not discl.
LFG316 Novartis C5 Ophthalmology
OMP-59R5 OncoMed/GSK Notch 2 Cancer
CNTO3157 Janssen/J&J - Asthma
CNTO6785 Janssen/J&J - Rheumatoid Arthritis
MOR208 - CD19 CLL, NHL, ALL
MOR202 Celgene/MOR CD38 Multiple Myeloma
BAY94-9343 Bayer Healthcare Mesothelin (ADC) Cancer
BI – 1 BI - not discl.
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
22 Programs Various Partners - Various Indications
38 Programs Various Partners
3 Proprietary Pr. - Various Indications
74 Partnered Programs
7 MOR Programs
5
HuCAL: The Most Successful Antibody Library
Technology in the Industry
HuCAL Human Combinatorial
Antibody Library
Most successful antibody library HuCAL programs in clinic 20
Transforming R&D productivity Success rate from target to IND 40%
Modular gene structure enables systematic
creation of drug quality antibodies
© MorphoSys - September 2013 6
MOR202
A Novel Antibody for Multiple Myeloma
© MorphoSys - September 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
Clinical Development
Phase 1/2a clinical trial in relapsed or refractory MM patients
currently ongoing
Strategic Alliance with Celgene
Joint development of MOR202 globally and co-promotion in Europe
7
Alliance with Celgene for MOR202
© MorphoSys - September 2013
Scope Global co-development and European
co-promotion agreement
Costs: 1/3 MorphoSys, 2/3 Celgene
Up-front MOR receives EUR 70.8 million
Equity Celgene pays EUR 46.2 million for 3.4%
stake in MOR at EUR 57.90 per share
53% premium to pre-announcement price
Milestones Up to EUR 511 million in development,
regulatory and sales milestones
Commercialization Co-promotion in Europe with 50:50 profit
share
Exclusive Celgene in rest-of-world,
tiered double digit royalties to MOR
8
MOR103
Global License Agreement with GSK
© MorphoSys - September 2013
MOR103
Ultra-high affinity HuCAL IgG1 targeting GM-CSF
Potential for superior efficacy and better safety than current
treatments
Phase 1b/2a trial in RA successfully completed
Phase 1b in MS ongoing
GSK assumes global responsibility for clinical development and
commercialization of MOR103 in all indications
MorphoSys receives…
EUR 22.5 million upfront payment
Up to EUR 423 million in success-based payments
Tiered, double-digit royalties on net sales
9
0
10
20
30
40
50
60
70
0 1 2 3 4
MOR103 1.0 mg/kgmavrilimumabHumiraOrenciaActemra
MOR103
Compelling Clinical Data
© MorphoSys - September 2013
Time (weeks)
% o
f pati
ents
ACR20*
Very fast onset of therapeutic effect
DAS28
Durable response
Week
Mean c
hange f
rom
base
line
Clean safety profile
* Data from separate clinical studies
10
Administration of MOR103
MOR208 (XmAb5574)
A Novel Anti-Cancer Antibody
© MorphoSys - September 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
11
MOR208
Phase 1/2a Trial in CLL/SLL
© MorphoSys - September 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 in Q3 2013
Phase 2
Phase 2 trials in ALL and NHL ongoing
Combination therapy study in CLL being considered
12
The MorphoSys Pipeline
21 Clinical Programs, 81 Total
© MorphoSys - September 2013
Program Partner Target Indication Discovery Preclinic Phase 1 Phase 2 Phase 3
Gantenerumab Roche Amyloid-ß Alzheimer’s Disease
MOR103
(2 programs) GSK GM-CSF
Rheumatoid Arthritis
Multiple Sclerosis
Guselkumab (CNTO1959)
(2 programs) Janssen/J&J IL23p19
Psoriasis
Rheumatoid Arthritis
BHQ880 Novartis DKK-1 Cancer
Bimagrumab (BYM338) Novartis ActRIIB Musculoskeletal
NOV – 3 Novartis - not discl.
LFG316 Novartis C5 Ophthalmology
OMP-59R5 OncoMed/GSK Notch 2 Cancer
CNTO3157 Janssen/J&J - Asthma
CNTO6785 Janssen/J&J - Rheumatoid Arthritis
MOR208 - CD19 CLL, NHL, ALL
MOR202 Celgene/MOR CD38 Multiple Myeloma
BAY94-9343 Bayer Healthcare Mesothelin (ADC) Cancer
BI – 1 BI - not discl.
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
22 Programs Various Partners - Various Indications
38 Programs Various Partners
3 Proprietary Pr. - Various Indications
74 Partnered Programs
7 MOR Programs
13
Gantenerumab: A HuCAL Antibody Being
Developed by Roche for Alzheimer’s Disease
© MorphoSys - September 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
14
Gantenerumab: The Most Advanced Antibody in
Development for Alzheimer’s Disease
© MorphoSys - September 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
Phase 3 study (Roche)
770 prodromal patients, 2 doses (105mg &
225mg s.c.), placebo-controlled
104 weeks on drug, with an option for an
additional 2 years of treatment
Primary Endpoint: Change in the Clinical
Dementia Rating Scale Sum of Boxes (CDR-SOB)
Data expected 2016
Phase 3 study (Dominantly Inherited Alzheimer
Network)
Genetically pre-disposed subjects
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
Data: Courtesy of Roche
15
The MorphoSys Pipeline
21 Clinical Programs, 81 Total
© MorphoSys - September 2013
Program Partner Target Indication Discovery Preclinic Phase 1 Phase 2 Phase 3
Gantenerumab Roche Amyloid-ß Alzheimer’s Disease
MOR103
(2 programs) GSK GM-CSF
Rheumatoid Arthritis
Multiple Sclerosis
Guselkumab (CNTO1959)
(2 programs) Janssen/J&J IL23p19
Psoriasis
Rheumatoid Arthritis
BHQ880 Novartis DKK-1 Cancer
Bimagrumab (BYM338) Novartis ActRIIB Musculoskeletal
NOV – 3 Novartis - not discl.
LFG316 Novartis C5 Ophthalmology
OMP-59R5 OncoMed/GSK Notch 2 Cancer
CNTO3157 Janssen/J&J - Asthma
CNTO6785 Janssen/J&J - Rheumatoid Arthritis
MOR208 - CD19 CLL, NHL, ALL
MOR202 Celgene/MOR CD38 Multiple Myeloma
BAY94-9343 Bayer Healthcare Mesothelin (ADC) Cancer
BI – 1 BI - not discl.
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
22 Programs Various Partners - Various Indications
38 Programs Various Partners
3 Proprietary Pr. - Various Indications
74 Partnered Programs
7 MOR Programs
16
Bimagrumab (BYM338)
A Novartis Musculoskeletal Program
© MorphoSys - September 2013
Bimagrumab is a HuCAL antibody against ActRIIB
Novartis received FDA breakthrough therapy
designation for sporadic inclusion body myositis (sIBM)
Phase 2 study showed that bimagrumab
substantially benefited patients with sIBM
Results will be presented at the American
Neurological Association meeting on Oct. 14, 2013
In Phase 2 development for
Sporadic inclusion body myositis
Cancer-related cachexia
COPD-related cachexia
Sarcopenia
Mechanically ventilated patients
Recently Highlighted by Novartis
“Imagine the equivalent of 8 or 10 weeks of exercise
in one injection”
Listed as a “planned filing 2016” Source: www.actionduchenne.org
17
The MorphoSys Pipeline
21 Clinical Programs, 81 Total
© MorphoSys - September 2013
Program Partner Target Indication Discovery Preclinic Phase 1 Phase 2 Phase 3
Gantenerumab Roche Amyloid-ß Alzheimer’s Disease
MOR103
(2 programs) GSK GM-CSF
Rheumatoid Arthritis
Multiple Sclerosis
Guselkumab (CNTO1959)
(2 programs) Janssen/J&J IL23p19
Psoriasis
Rheumatoid Arthritis
BHQ880 Novartis DKK-1 Cancer
Bimagrumab (BYM338) Novartis ActRIIB Musculoskeletal
NOV – 3 Novartis - not discl.
LFG316 Novartis C5 Ophthalmology
OMP-59R5 OncoMed/GSK Notch 2 Cancer
CNTO3157 Janssen/J&J - Asthma
CNTO6785 Janssen/J&J - Rheumatoid Arthritis
MOR208 - CD19 CLL, NHL, ALL
MOR202 Celgene/MOR CD38 Multiple Myeloma
BAY94-9343 Bayer Healthcare Mesothelin (ADC) Cancer
BI – 1 BI - not discl.
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
22 Programs Various Partners - Various Indications
38 Programs Various Partners
3 Proprietary Pr. - Various Indications
74 Partnered Programs
7 MOR Programs
18
Guselkumab
A Janssen Anti-Inflammatory Program
© MorphoSys - September 2013
Guselkumab is a HuCAL antibody against IL-23
Phase 2 development for psoriasis
Phase 2 study vs. Stelara in rheumatoid arthritis
Specific for IL-23
Guselkumab binds the p19 sub-unit of IL-23, while
Stelara binds the p40 sub-unit of IL-23 and IL-12
Highlighted at Janssen’s Last Analyst Day
Listed under “planned filings 2013 – 2017”
Sources: Jetten AM, Nucl Recept Signal, 2009
19
Technology
© MorphoSys - September 2013 20
New Technologies
Enabling the Creation of Differentiated Drugs
© MorphoSys - September 2013 21
Ylanthia
Totally new antibody platform
Higher quality antibodies, greater
diversity faster access to superior
drug leads
US patent granted January 2013
Differentiated Drug Candidates
Lantipeptides
Alliance with Lanthio Pharma to
develop lantipeptide libraries for drug
discovery
Preferred rights to exclusive license
MorphoSys has minority equity position
New Target Classes
Antibodies Against GPCRs
MorphoSys secures access to stabilized GPCRs produced by Heptares
MorphoSys will make and offer antibodies against GPCRs
Most important target class; challenging for antibodies
Strong Financials
© MorphoSys - September 2013 22
Shareholdings
© MorphoSys - September 2013
52%
6%
3%
20%
15%
Institutional Investors - 52%Novartis - 6%Celgene - 3%Treasury Stock - 2%Management & Supervisory Boards - 2%Retail Investors - 20%Unidentified Investors - 15%
2% 2%
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; OTC: MPSYY)
Shares issued: 24,591,443 (August 31, 2013)
Shareholdings by Investor Type
23
Key Financials
© MorphoSys - September 2013
in EUR million H1 2013 Guidance 2013*
Group Revenues 48.2 74 – 78
EBIT 17.3 2 to 6
Cash & Marketable Securities and Interest-bearing
Assignable Loans as of June 30, 2013 166.3**
* Updated following MOR202 regulatory clearance (August 10, 2013)
** Cash position does not include any payments from GSK or Celgene, nor the proceeds
from the capital increase placed in September
24
Outstanding Recent Progress
© MorphoSys - September 2013
MOR202
Co-development partnership with Celgene
MOR103
Partnership with GSK
MOR208
Promising Phase 1 data in CLL
Phase 2 studies in ALL and NHL started
Bimagrumab
Breakthrough therapy designation
NOV-7
Seventh program enters clinic from Novartis alliance
2013
25
MOR208
CLL (extension arm)
Gantenerumab
AD/Japan
Clinical Trials Scheduled for Completion
© MorphoSys - September 2013
Potential data events based on clinical trial design & MorphoSys estimates
Bimagrumab
Sarcopenia
BHQ880
Smoldering MM
MOR208
B-ALL
Bimagrumab
Cachexia (cancer)
LFG316
MCP
LFG316
Wet AMD
Guselkumab
RA (vs. Stelara)
LFG316
AMD
Guselkumab
Psoriasis
Bimagrumab
Cachexia (COPD)
LJM716
Combo
OMP-59R5
Solid Tumors
BI-1
undisclosed
BI-1
undisclosed
Guselkumab
Psoriasis (Japan)
BAY94-9343 (ADC)
Solid Tumors
Gantenerumab
Liquid vs. Lyophilized
OMP-18R5
Solid Tumors
MOR103
Multiple sclerosis
2013
NOV-3
undisclosed
NOV-3
undisclosed
2014
Phase 2
Phase 1
Partnered
Proprietary
Phase 2
Phase 1
Guselkumab
Devices/Formulation
BHQ880
MM/Renal Insufficiency
Bimagrumab
Ventilated Patients
NOV-3
Undisclosed
LJM716
Single
Guselkumab
Palmoplantar Postulosis
CNTO3157
Asthma
26
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