121129 MOR Company Update web...Advanced to Phase 3 development for Alzheimer’s Disease by Hoffmann La Roche Solanezumab results provide support for Roche trial design Selected by

Company Update

November 2012

© MorphoSys - November 2012

Safe Harbour


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

Components of the Business


Technology-driven Alliances

Proven HuCAL platform

Ylanthia launched

Collaboration with Lanthio Pharma

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

3

Pipeline Gathering Momentum


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

4

Innovative Product Pipeline

© MorphoSys - November 2012 5

Program Partner Target Indication Discovery Preclinic Phase 1 Phase 2 Phase 3Gantenerumab Roche Amyloid-ß Alzheimer’s DiseaseMOR103 (2 programs) - GM-CSF Rheumatoid Arthritis

Multiple sclerosisCNTO888 Janssen/J&J MCP-1 (CCL-2) IPFCNTO1959(2 programs) Janssen/J&J IL23p19 Psoriasis

RABHQ880 Novartis DKK-1 CancerBYM338 Novartis - MusculoskeletalNOV – 3 Novartis - not discl.NOV – 4 Novartis - OphthalmologyOMP-59R5 OncoMed/GSK Notch 2 CancerMOR208 - CD19 CLLMOR202 - CD38 MMBAY94-9343 Bayer Healthcare Mesothelin (ADC) CancerBI – 1 BI - not discl.CNTO3157 Janssen/J&J - AsthmaCNTO – 5 Janssen/J&J - InflammationNOV – 5 Novartis - InflammationNOV – 6 Novartis - CancerOMP-18R5 OncoMed/Bayer Fzd 7 CancerPFE – 1 Pfizer - Cancer

21 Programs Various Partners - Various Indications

34 Programs Various Partners - Various Indications

76 Therapeutic Antibody Programs21 Programs in Clinical Development


70 Partnered Programs6 Proprietary Programs

6

MOR103A Novel Anti-Inflammatory Antibody


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

7

MOR103Phase 1b/2a Trial in Rheumatoid Arthritis


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

8

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


ACR20 Response at week 4 (FAS population)

% o

f pa

tien

ts

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


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 pa

tien

ts

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

10

MOR103Safe & Well-tolerated at All Doses


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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MOR103Looking Ahead


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

12

MOR208 (XmAb5574)A Novel Anti-Cancer Antibody


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

13

MOR208 Has Compelling Prospects


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

14

MOR202A Novel Antibody for Multiple Myeloma



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


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



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

16

Gantenerumab is the Most Advanced Antibody in Prodromal AD Patients


Gantenerumab

High affinity HuCAL antibody targeting amyloid-β

Binds & breaks down amyloid-β fibrils and plaques


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 1Effect of gantenerumab on

amyloid load as indexed by PET SUVR at end of treatment

% Am

yloi

d ch

ange

from

bas

elin

e

17

Technology-driven Alliances


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

MorphoSys Pharma partner

Target

HuCAL antibody drug candidate

R&D fundingTechnology licence feesMilestones and royalties

19

Commercial Launch of Ylanthia


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

20

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

Technology Alliance on New Class of Therapeutic Peptides


MorphoSys and Lanthio Pharma Sign Technology Alliance on New Class of Therapeutic Peptides Lanthio Pharma is focused on discovering and developing

lantipeptides (constrained peptides) Lantipeptides comprise a novel class of therapeutics

with high target selectivity and improved drug-like properties

The companies will jointly apply their respective technologies to establish high quality and diverse lantipeptide-based libraries

Peptides: Where‘s the Niche? Constrained peptides can be positioned between small

molecules and biological drugs

First transaction combining collaborative aspects and a corporate VC-like investment

Lanthio Pharma Groningen,

Holland Founded:

2010

Series A financing: BioGeneration

Ventures INKEF Capital MorphoSys Hanzepoort

AbD Serotec


AbD Serotec Segment Complements Therapeutic Business


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 ApplicationsResearch Activities

23

Strong Financials


Key Financials


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

25

Shareholdings


Shares issued: 23,308,622 (September 30, 2012)

Treasury stock: 255,415 (September 30, 2012)

26

Forthcoming Pipeline Developments


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

27

Appendix


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-LöserHead of Corporate Communications & IR

Phone +49 (0)89 / 899 27-122Fax +49 (0)89 / 899 27-5122Email [email protected]

Thank You

www.morphosys.com

Documents

121129 MOR Company Update web...Advanced to Phase 3 development for Alzheimer’s Disease by Hoffmann La Roche Solanezumab results provide support for Roche trial design Selected by