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June 8, 2012
Jefferies 2012 Global Healthcare Conference
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.
Safe Harbour
© MorphoSys AG © MorphoSys AG
Components of the Business
Page 3
Innovative Product Pipeline Technology-driven Alliances
AbD Serotec Financially Strong
MOR103 phase 1b/2a data
coming soon
Four partner phase 2 studies
complete in 2012
20 clinical programs
Proven HuCAL platform
Novel Slonomics and
Ylanthia technologies
provide new opportunities
Emerging diagnostics
business
Research antibody catalog
Sustainably cash-flow positive
Strong balance sheet
Company Update - June 2012
© MorphoSys AG © MorphoSys AG
Technology-driven Alliances
Company Update - June 2012 Page 4
© MorphoSys AG © MorphoSys AG
Proprietary Technology Platform Underpins
Lucrative Alliances
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
Page 5
MorphoSys Pharma partner
Target
HuCAL antibody drug
candidate
R&D funding
Technology licence fees
Milestones and royalties
Company Update - June 2012
© MorphoSys AG © MorphoSys AG
Case Study: MorphoSys-Novartis
One of the largest discovery alliances in the industry
Term Through 2017, subject to 2-year extension option
Novartis pays…
Approx. €20m p.a. technology license fees
Approx. €20m p.a. in research funding
Milestones and royalties on all resulting drugs
Novartis gets… Preferred access to HuCAL for use in over 100
discovery programs
Co-development
option
Shared costs & profits (20% – 50%) on selected co-
developed programs
Excluded Most infectious disease targets
Page 6 Company Update - June 2012
© MorphoSys AG © MorphoSys AG
New Technologies Drive New Deals
Page 7
Slonomics
Best technology for making protein libraries
Exclusive access secured through acquisition
of Sloning Biotechnology in 2010
Deals have already paid for acquisition
Pfizer
Novozymes
Unnamed pharma
Ylanthia
Totally new antibody platform
Higher quality antibodies, greater diversity,
better biophysical properties, faster lead
generation
Opens new opportunities
Company Update - June 2012
© MorphoSys AG © MorphoSys AG
Innovative Product Pipeline
Company Update - June 2012 Page 8
© MorphoSys AG © MorphoSys AG
20 Therapeutic Antibody Programs
in Clinical Trials
Page 9
Program Partner Target Indication Discovery Pre-clinic 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 Janssen/J&J IL23p19 Psoriasis
BHQ880 Novartis DKK-1 Cancer
BYM338 Novartis - Musculoskeletal
NOV – 3 Novartis - not discl.
NOV – 4 Novartis - Ophthalmology
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 Fzd 7 Cancer
OMP-59R5 Oncomed Notch 2/3 Cancer
PFE – 1 Pfizer - Cancer
19 Partnered
Programs Various Partners - Various Indications
32 Programs, incl.
2 co-dev with NOV Various Partners - Various Indications
63 Partnered Programs
8 Proprietary Programs
Company Update - June 2012
© MorphoSys AG © MorphoSys AG
Partner Program Case Study
Gantenerumab: Alzheimer’s Disease
The Drug
High affinity HuCAL antibody targeting amyloid-b
Binds N-terminus and mid-section of Ab40-42 peptide
Large Market and Unmet Need
AD is estimated to affect 25 million people worldwide
High unmet medical need, no curative treatments available
Clinical Development
Phase 1, in patients: Completed
Gantenerumab: Rapid, dose-dependent reduction of
plaque: 16-36% reduction within 7 months
Bapineuzumab: 9% plaque reduction over 18 months
Phase 2: Pivotal Phase 2/3 Study Ongoing
770 prodromal patients, 2 doses, placebo-controlled
104 weeks on drug
CDR-SOB, ADAS-COG, change in brain amyloid
Favorable outcome to the trial could be used by Roche to
support a marketing application
Page 10 Company Update - June 2012
© MorphoSys AG © MorphoSys AG
MOR103
A Novel Anti-Inflammatory Antibody
The Drug
Ultra-high affinity HuCAL IgG1 targeting GM-CSF
GM-CSF is a key inflammatory mediator in rheumatoid arthritis and other
inflammatory conditions
Potential to become first and best-in-class anti-GM-CSF mAb
Large Market and Unmet Need
Revenues with approved biologics in rheumatoid arthritis over $12bn
50% of RA patients do not respond to anti-TNF therapy beyond 2 years
Potential in MS, osteoarthritis, pain, asthma, COPD
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
Page 11 Company Update - June 2012
© MorphoSys AG © MorphoSys AG
MOR103 is A Novel Drug in a Clinically
Validated Pathway
Clinical Validation of Pathway
Phase 2 data for mavrilimumab, antibody vs.
GM-CSF receptor, provides clinical
validation of the pathway in rheumatoid
arthritis
Clinical Development of MOR103
Phase 1, in healthy volunteers: MOR103
generally safe and well-tolerated
Phase 1b/2a, in RA patients: Fully recruited,
data expected in Q3 2012
Phase 1, PK study for sc administration:
Initiated Q1 2012, data expected in Q3 2012
Phase1b, safety study in MS patients:
Initiated Q4 2011, data expected in 2013
Proportion of subjects achieving a change of 1.2 from
baseline in DAS28-CRP
Source: ACR2011 Abstract: Mavrilimumab (an Anti-GM-CSFRα
Monoclonal Antibody) in Subjects with Rheumatoid Arthritis:
Results of a Phase 2 Randomized, Double-Blind, Placebo-
Controlled Study
http://acr.confex.com/acr/2011/webprogram/Paper24567.html
Phase 2 data for mavrilimumab
Company Update - June 2012 Page 12
© MorphoSys AG © MorphoSys AG
MOR103
Clinical Trials in RA and MS
Rheumatoid arthritis Multiple sclerosis
Patients Patients with active rheumatoid arthritis Patients with relapsing-remitting or secondary progressive multiple sclerosis
Study Design
Randomized, double-blind, vs. stable regimen of RA therapy (NSAIDs, steroids, non- biological DMARDs)
0.3/1.0/1.5 mg/kg MOR103
Randomized, double-blind, placebo-controlled
0.5/1.0/2.0 mg/kg MOR103
Primary Endpoint
Adverse event rate and safety profile Incidence and severity of adverse events
Secondary Endpoints
DAS28, ACR core set measures and EULAR28 response criteria, hematology, blood chemistry, Ig levels, cytokines, synovitis, bone edema
Pharmacokinetic profile
Potential immunogenicity
Study Details
96 patients
Inclusion of MRI to detect an effect on inflammatory changes such as synovitis or bone edema
30 patients
Page 13 Company Update - June 2012
© MorphoSys AG © MorphoSys AG
MOR208 (XmAb5574)
A Novel Anti-Cancer Antibody
The Drug
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
Large Market and Unmet Need
High unmet medical need in NHL, CLL & ALL
Revenues with approved drugs in B cell malignancies (CLL,
NHL & ALL) exceed $5bn
Relapsing patients have only limited treatment options
In ALL no antibody therapy at all exists and current
chemotherapy regimens are associated with very unfavorable
safety profile
Page 14 Company Update - June 2012
© MorphoSys AG © MorphoSys AG
MOR208 (XmAb5574)
A Novel Anti-Cancer Antibody
Clinical Validation of Pathway
Phase 2 data for blinatumomab validate CD19 as target for B-cell
malignancies
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
Phase 1, in 30 relapsed or refractory CLL/SLL patients:
Recruitment nearly completed
Data expected in H2 2012
Phase 2: Trials in B cell malignancies starting Q4 2012
Page 15 Company Update - June 2012
© MorphoSys AG © MorphoSys AG
MOR202 – A Novel High-Potential Antibody
for Multiple Myeloma
The Drug
High affinity HuCAL antibody targeting CD38
Large Market and Unmet Need
Revenues with approved drugs in MM exceed $2bn
MM median survival is approximately 3-5 years
Competitive Profile
Pre-clinical data show strong synergy in combinations of
MOR202 with Velcade or Revlimid
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
Page 16
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OR
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multiple myeloma in mouse
Non-inocula
ted
Vehicle
MOR202 3
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LEN 50m
g/kg
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Company Update - June 2012
© MorphoSys AG © MorphoSys AG
AbD Serotec
Company Update - June 2012 Page 17
© MorphoSys AG © MorphoSys AG
AbD Serotec Segment Complements
Therapeutic Business
Page 18
Research Activities
Catalogue of 15,000+ products
Stable and recurring cash flows
Customers comprise universities, government bodies, life science companies
Website, eCommerce
HuCAL – Diagnostic Applications
Custom antibody generation
Using proprietary technologies to deliver superior Dx antibodies
Future upside via royalties
Working with over 20 Dx companies
Company Update - June 2012
© MorphoSys AG © MorphoSys AG
Strong Financials
Company Update - June 2012 Page 19
© MorphoSys AG © MorphoSys AG
Key Financials
in € million 2011 Guidance 2012 Q1 2012
Group Revenues 100.8 75 – 80 16.1
Total Operating Expenses 89.1 17.0
COGS 7.0 1.7
Funded R&D 20.7 4.0
Proprietary R&D (incl. technology development) 36.8 20 – 25 6.4
Sales, General & Administrative Expenses 24.6 4.9
EBIT 10.1 1 – 5 (0.8)
Cash & Marketable Securities (at end of period) 134.4 137.4
Page 20 Company Update - June 2012
© MorphoSys AG © MorphoSys AG
Shareholdings
Company Update - June 2012 Page 21
Shares issued: 23,154,806 (March 31, 2012)
Treasury stock: 163,915 (March 31, 2012)
797,502 stock options and 328,050 convertible bonds outstanding (4.6%; December 31, 2011)
© MorphoSys AG © MorphoSys AG
Milestones in 2012
Proprietary Portfolio
MOR103 Phase 1b/2a data in RA
MOR208
Phase 1 data in CLL
Pre-clinical data to be presented at ASCO
MOR202 to continue enrollment in phase 1 trial in MM patients
Partnered Pipeline
Several phase 2 studies will complete in 2012*
CNTO888 (Janssen Biotech, IPF)
BHQ880 (Novartis, oncology)
BYM338 (Novartis, musculoskeletal diseases)
Novartis (n.d.)
1-3 new INDs
Technology-driven alliances
New diagnostic products from AbD Serotec
Company Update - June 2012 Page 22
* MorphoSys estimates based on publicly-available information
www.morphosys.com
Thank You
HuCAL®, HuCAL GOLD®, HuCAL PLATINUM®, Ylanthia®, arYla®, CysDisplay®, RapMAT® and AutoCAL® 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 investors@morphosys.com
Dr. Simon Moroney
Chief Executive Officer
Phone +49 (0)89 / 899 27-311
Fax +49 (0)89 / 899 27-5311
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