deutsches eigenkapitalforum 2012 - morphosys...26 sites in holland, germany, poland, bulgaria &...
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Company Update Deutsches Eigenkapitalforum 2012
November 13, 2012
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Safe Harbour
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
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.
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Components of the Business
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Technology-driven Alliances
Proven HuCAL platform
Ylanthia launched
Innovative Product Pipeline
MOR103 shows excellent
safety and efficacy in RA
Partner Phase 2 read-outs
coming
21 clinical programs
AbD Serotec
Emerging diagnostics
business
Research antibody
catalog
Financially Strong
Sustainably cash-flow
positive
Strong balance sheet
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Pipeline Gathering Momentum
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
MOR103
Excellent clinical proof-of-concept and safety data generated in rheumatoid
arthritis Phase 1b/2a trial
MOR208
Positive safety and efficacy data from Phase 1/2a trial in CLL/SLL
Gantenerumab
Advanced to Phase 3 development for Alzheimer’s Disease by Hoffmann La Roche
Solanezumab results provide support for Roche trial design
Selected by Dominantly-Inherited Alzheimer Network (DIAN) for world-wide trial in
early-onset AD
CNTO1959
Janssen commences Phase 2 RA comparison study with Stelara®
BYM338
Novartis completes Phase 2 study in sporadic inclusion body myositis
OMP-59R5
Oncomed commences Phase 1b/2 trial in first-line advanced pancreatic cancer
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Innovative Product Pipeline
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012 5
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
CNTO888 Janssen/J&J MCP-1 (CCL-2) IPF
CNTO1959
(2 programs) Janssen/J&J IL23p19
Psoriasis
RA
BHQ880 Novartis DKK-1 Cancer
BYM338 Novartis - Musculoskeletal
NOV – 3 Novartis - not discl.
NOV – 4 Novartis - Ophthalmology
OMP-59R5 OncoMed/GSK Notch 2 Cancer
MOR208 - CD19 CLL
MOR202 - CD38 MM
BAY94-9343 Bayer Healthcare Mesothelin (ADC) Cancer
BI – 1 BI - not discl.
CNTO3157 Janssen/J&J - Asthma
CNTO – 5 Janssen/J&J - Inflammation
NOV – 5 Novartis - Inflammation
NOV – 6 Novartis - Cancer
OMP-18R5 OncoMed/Bayer Fzd 7 Cancer
PFE – 1 Pfizer - Cancer
21 Programs Various Partners - Various Indications
34 Programs Various Partners - Various Indications
76 Therapeutic Antibody Programs
21 Programs in Clinical Development
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
70 Partnered Programs
6 Proprietary Programs
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MOR103
A Novel Anti-Inflammatory Antibody
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
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
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MOR103
Phase 1b/2a Trial in Rheumatoid Arthritis
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Trial design
96 patients with active, mild-to-moderate RA (DAS28≤5.1)
Randomized, double-blind, placebo-controlled
Dose regimen: 0.3, 1.0 and 1.5 mg/kg weekly x 4 injected intravenously vs. placebo
26 sites in Holland, Germany, Poland, Bulgaria & Ukraine
Primary outcome measures
Adverse event rate and safety profile
Secondary outcome measures
DAS28, ACR core set measures and EULAR28 response criteria, MRI (synovitis & bone
edema), patient reported outcomes at 4 and 8 weeks
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7.4
25.0
68.2
30.4
0
10
20
30
40
50
60
70
80
Week 4
Placebo
MOR103 0.3mg
MOR103 1.0mg
MOR103 1.5mg
MOR103 Shows Impressive Efficacy & Fast
Onset of Action
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
ACR20 Response at week 4 (FAS population)
% o
f pati
ents
FAS: Full Analysis Set, N= 96
p<0.0001
ACR20 ranks amongst highest observed
for a biologic in RA after 4 weeks
Very fast onset of therapeutic effect
within 2 weeks
Robust and durable responses 10
weeks beyond treatment
Imaging confirms anti-inflammatory
activity
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ACR20 Scores Compare Favorably to Other
Biological DMARDs
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
0
10
20
30
40
50
60
70
0 1 2 3 4
Placebo
MOR103 1 mg/kg
MOR103 1.5 mg/kg
mavrilimumab
adalimumab
abatacept
tocilizumab in TNF-IR
Time (weeks)
% o
f pati
ents
ACR20 Response over 4 weeks*
Level of efficacy and speed of onset exceed those seen for mavrilimumab,
adalimumab (Humira), abatacept (Orencia) and tocilizumab (Actemra)
* Data from separate clinical studies
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MOR103
Safe & Well-tolerated at All Doses
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Serious Adverse Events (SAEs)
No treatment-related SAEs in the active treatment groups
Related adverse events (AEs)
More frequent in placebo group (25.9%) than in active treatment group (14.5%)
Most common AEs (≥6%) were nasopharyngitis, RA flare, fatigue and hypertension
Majority of AEs were of mild intensity
One patient on placebo discontinued treatment due to an AE
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MOR103
Looking Ahead
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Rheumatoid arthritis
Expect even higher efficacy on
longer treatment
development in moderate to severe patients
Potential for dosing monthly or even less frequently
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
Sub-cutaneous formulation
Phase 1 study in healthy volunteers confirms feasibility of subcutaneous administration
Partnering
Discussions ongoing
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MOR208 (XmAb5574)
A Novel Anti-Cancer Antibody
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Large Market and Unmet Need
High unmet medical need in NHL, CLL & ALL
Revenues with approved drugs for B cell malignancies
exceed $5bn
Relapsing patients have limited treatment options
Phase 2 data for blinatumomab validate CD19 as
target for B-cell malignancies
MOR208
Humanized, high affinity anti-CD19 antibody
Exclusive license from Xencor
Antibody comprises a proprietary Xencor modification
of the Fc part of the antibody leading to rapid and
sustained B-cell depletion
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MOR208 Has Compelling Prospects
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
MOR208 Has An Attractive Competitive Profile
Expect convenient dosing schedule
Straightforward manufacturing
Potential for good safety profile
Significantly increased ADCC compared to unmodified antibody
Clinical Development
Preclinical data show synergistic effects on target cell killing in
combination therapies with existing drugs
Phase 1, in relapsed or refractory CLL/SLL patients, to be
presented at ASH 2012:
Favorable safety profile
3/27 partial responses and 22/27 patients with stable disease
Results from trial extension expected in Q1 2013
Phase 2: Trials in B cell malignancies starting Q4 2012
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MOR202
A Novel Antibody for Multiple Myeloma
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Large Market and Unmet Need
Revenues with approved drugs in MM exceed $2bn, but
median survival is only 3-5 years
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 to be presented at ASH
Clinical Development
Phase 1, in relapsed or refractory MM patients ongoing
Phase 2a, monotherapy extension
Phase 1b, MOR202 + Velcade
Phase 1b, MOR202 + Revlimid
Up to 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 - Deutsches Eigenkapitalforum - November 13, 2012
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 is the Most Advanced Antibody
in Prodromal AD Patients
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Gantenerumab
High affinity HuCAL antibody targeting amyloid-β
Binds & breaks down amyloid-β fibrils and plaques
Clinical Development
Phase 1, in patients completed
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
Initial data expected in 2015: favorable
outcome could support a marketing application
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 - Deutsches Eigenkapitalforum - November 13, 2012 18
Proprietary Technology Platform Underpins
Lucrative Alliances
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
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
MorphoSys Pharma partner
Target
HuCAL antibody drug
candidate
R&D funding
Technology licence fees
Milestones and royalties
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Commercial Launch of Ylanthia
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
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
Opens new opportunities
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New technologies now part of expanded Novartis strategic alliance
Novartis committed through 2017 with annual license fees, FTE funding,
milestones, royalties
MOR free to partner platform broadly
AbD Serotec
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012 21
AbD Serotec Segment Complements
Therapeutic Business
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Catalogue of 15,000+ products
Stable and recurring cash flows
Customers comprise universities,
government bodies, life science
companies
Website, eCommerce
Custom antibody generation
Using proprietary technologies to deliver
superior Dx antibodies
Future upside via royalties
Working with over 20 Dx companies
HuCAL – Diagnostic Applications Research Activities
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Strong Financials
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012 23
Key Financials
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
in € million 2011 Guidance 2012* 9M 2012
Group Revenues 100.8 70 – 75 48.9
Total Operating Expenses 89.1 51.3
COGS 7.0 4.8
Funded R&D 20.7 13.1
Proprietary R&D (incl. technology development) 36.8 20 – 25 17.2
Sales, General & Administrative Expenses 24.6 16.2
EBIT 10.1 1 – 5 (2.3)
Cash & Marketable Securities and Interest-bearing
Assignable Loans (at end of period) 134.4 137.5
* as of Nov 7, 2012
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Shareholdings
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Shares issued: 23,308,622 (September 30, 2012)
Treasury stock: 255,415 (September 30, 2012)
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Forthcoming Pipeline Developments
© MorphoSys - Deutsches Eigenkapitalforum - November 13, 2012
Proprietary Portfolio
MOR103 phase 1b/2a data at ACR 2012 (November)
MOR208 phase 1 data at ASH 2012 (December)
MOR208 data from extended dose group (Q1 2013)
MOR202 interim data from phase 1 open label study
Partnered Pipeline
Several Phase 2 studies to complete shortly
BHQ880 (Novartis, oncology to be presented at ASH)
CNTO888 (Janssen Biotech, IPF)
BYM338 (Novartis, musculoskeletal diseases)
NOV-3 (n.d.)
NOV-4 (ophthalmology)
Roche hints at interim analysis of gantenerumab Phase 3 study
during 2013
* MorphoSys estimates based on publicly-available information
26
Thank You
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.
www.morphosys.com
Jens Holstein Chief Financial Officer
Phone +49 (0)89 / 899 27-439 Fax +49 (0)89 / 899 27-5439
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]