Q3 2015 Conference Call - morphosys.de...Actual results could differ materially from those included in the forward-looking statements due to ... (Merck Serono) Cancer Undisclosed 4

Q3 2015

Conference Call

© MorphoSys - Q3 2015 Conference Call

November 4, 2015

1

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

Today on the Call


Simon Moroney

CEO

Jens Holstein

CFO

Claudia Gutjahr-Löser

Head of Corporate

Communications & IR

3

The MOR Portfolio


Program Indication Target Discovery Preclinic Phase 1 Phase 2 Phase 3

Unpartnered

MOR208 NHL

CD19CLL

ALL

MOR202 Multiple myeloma CD38

MOR107 Fibrosis AT2-R

Immuno-oncology program(Immatics)

Cancer Various

6 Programs Various Various

Co-development & co-promotion

MOR209/ES414 (Emergent)

Prostate cancer PSMA / CD3

MOR106(Galapagos)

Inflammation Undisclosed

Immuno-oncology program(Merck Serono)

Cancer Undisclosed

4

MOR208 – Multiple Studies Commencing

in 2015 and 2016

5© MorphoSys - Q3 2015 Conference Call

2015 2016 2017 2018*

NHL

DLBCL

CLL

ALL

Phase 2: MOR208 (12mg/kg) plus lenalidomide (N=80)

Phase 2: MOR208 mono

(N=92)

Safety evaluation leading into anticipated pivotal study

(12 mg/kg MOR208 plus bendamustine), N~320

Ph. 2 (ongoing OSU IIT): R/R & naive CLL & Richter’s Transformation, MOR208 (9mg/kg) plus LEN, N=50

Phase 2: MOR208 (12mg/kg) plus idelalisib, BTKi-failures, N=120

Phase 2 (St. Jude’s IIT): Pediatric ALL, MOR208 (12mg/kg) plus NK cells, N=13

*no outlook given beyond 2018

NEXT STEPS Phase 2 trial with LEN in 2nd line R/R DLBCL to start in Q4 2015

Phase 2 trial with IDE in CLL in BTKi-failures to start in Q1 2016

Phase 3 combo trial with BEN in 2nd line R/R DLBCL aimed to start in 2017

Update on NHL monotherapy planned at ASH 2015

Phase 3Phase 2

IIT

MOR202 – Updated Clinical Data

15th International Myeloma Workshop

6

*Updated data from 07 September 2015Data from patients in cohorts ≥ 5 who received > 1 treatment cycle


Encouraging Activity and Long Lasting Tumor Control Already Demonstrated With Low Doses of MOR202

Progress in Partnered Programs

© MorphoSys - Q3 2015 Conference Call 7

MOR103/GSK3196165

Licensed to GSK. GSK is responsible for all development and

commercialisation of MOR103

BAROQUE (RA Phase IIb) ongoing, initial clinical read-out 2016

Potential for disease modification & analgesic activity in hand

osteoarthritis (HOA)

Phase 2 in HOA to start in 2016

Gantenerumab

Partnered program with Roche

Update from Roche at Q3 call

SCarlet RoAD and Marguerite RoAD will continue as open label

studies

Roche will explore higher doses of gantenerumab

BAY1093884

Partnered program with Bayer HealthCare

Start of phase 1 in hemophilia

Antibody targets the tissue factor pathway inhibitor (TFPI), a

major inhibitor of tissue factor-initiated blood clotting

Milestone payment received (Q4)

New Partnerships


Partnership focusing on G-protein coupled receptors (GPCRs)

Innovative technology for production of GPCRs

Challenging target class to make antibodies against

Partnership provides access to new cancer targets

Access to intracellular cancer targets, which are presented as

peptides on cell surface

In feasibility study, antibodies against HLA-peptide complexes

were identified

The MorphoSys Pipeline

25 Clinical Programs, 104 Total

9

Program Partner Target Disease Area Discovery Preclinic Phase 1 Phase 2 Phase 3

Bimagrumab (BYM338) Novartis ActRIIB sIBM (musculoskeletal)

Guselkumab (CNTO1959) Janssen IL23p19 Psoriasis

Gantenerumab Roche Amyloid-ß Alzheimer’s disease

MOR208 - CD19 ALL, CLL, NHL

MOR103/GSK3196165 GSK GM-CSF Inflammation

MOR202 - CD38 Multiple myeloma

BHQ880 Novartis DKK-1 Multiple myeloma

CNTO3157 Janssen - Inflammation

CNTO6785 Janssen - Inflammation

LFG316 Novartis C5 Eye diseases

LJM716 Novartis HER3 Cancer

BPS804 Mereo/Novartis Sclerostin Brittle bone syndrome

Tarextumab (OMP-59R5) OncoMed Notch 2 Solid tumors

VAY736 Novartis BAFF-R Inflammation

MOR209/ES414 Emergent PSMA/CD3 Prostate cancer

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

BAY1093884 Bayer TFPI Hemophilia

BI–836845 BI IGF-1 Solid tumors

NOV–7 Novartis - Eye diseases

NOV–8 Novartis - Inflammation

NOV-9 Novartis - Diabetic eye diseases

NOV-10 Novartis - Cancer

NOV-11 Novartis - Blood disorders

PF-05082566 Pfizer 4-1BB Solid tumors

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

MOR106 Galapagos - Inflammation

MOR107 (LP2) - AT2-R Fibrosis

Immuno-oncology program Merck Serono - Cancer

Immuno-oncology program Immatics - Cancer

6 MOR programs - - Various

90 Partnered Programs

13 MOR Programs

1 Outlicensed Program

Most advanced development stage

In addition, 26 partnered programs in pre-clinic, and 43 partnered programs in discovery


Income Statement


in € million* 9-Months 2015 9-Months 2014

Revenues 93.9 46.9 +100%

Operating Expenses

Research and Development# 53.1 40.8 +30%

General and Administrative 10.6 10.3 +3%

Total Operating Expenses 63.6 51.1 +24%

Other Income 4.5 0.4

Earnings before Interest and Taxes (EBIT) 34.7 (3.7)

Finance Income 2.3 1.4

Income Tax (Expenses)/Income (8.8) 0.3

Consolidated Net Profit/(Loss) 28.2 (2.0)

Diluted Net Profit/(Loss) per Share 1.07 (0.08)

* Differences due to rounding

# Split of R&D Expenses, in € million 9-Months 2015 9-Months 2014

Proprietary R&D Expenses (incl. Technology

Development)39.9 26.1 +53%

Partnered Discovery Expenses 13.2 14.7 -10%

Segment Reporting


in € million* 9-Months 2015 9-Months 2014

Proprietary Development

Segment Revenues 59.9 11.5

Operating Expenses 38.0 24.2

Segment EBIT 26.5 (12.7)

Partnered Discovery

Segment Revenues 34.0 35.5

Operating Expenses 15.9 17.2

Segment EBIT 18.1 18.3

11


Balance Sheet


in € million* Sep 30, 2015 Dec 31, 2014

Assets

Cash, Cash Equivalents 26.6 32.2

Available-for-sale Financial Assets 75.8 106.0

Bonds, Available-for-sale 34.9 7.5

Financial Assets Classified as Loans and Receivables 166.4 157.0

Other Current Assets 16.5 19.6

Total Non-current Assets 102.3 104.1

Total Assets 422.5 426.5

Liabilities & Stockholders’ Equity

Total Current Liabilities 36.4 32.7

Total Non-current Liabilities 11.2 45.0

Total Stockholders’ Equity 374.9 348.8

Total Liabilities & Stockholders’ Equity 422.5 426.5


As of 30/09/2015, MorphoSys held liquid funds and marketable securities as well as other short-term

and long-term financial assets in the amount of €317.7 million (31/12/2014: €352.8 million)

12

Financial Guidance 2015


in € million Guidance 2015

Group Revenues 101 to 106

Proprietary R&D Expenses (incl. Technology Development) 56 to 63

EBIT 9 to 16

13

Q&A Session

Q3 2015 Conference Call


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.

Thank You

www.morphosys.com

Corporate Communications & Investor Relations

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

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

Twitter @MorphoSys

Email [email protected]

Documents

Q3 2015 Conference Call - morphosys.de...Actual results could differ materially from those included in the forward-looking statements due to ... (Merck Serono) Cancer Undisclosed 4