This presentation includes forward-looking statements.
© MorphoSys AG, Company Update – January 2018
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.
The compounds discussed in this slide presentation are investigational
products being developed by MorphoSys and its partners and are not currently
approved by the U.S. Food and Drug Administration (FDA), European Medicine
Agency (EMA) or any other regulatory authority (except for
guselkumab/Tremfya®).
2
Investment Highlights
© MorphoSys AG, Company Update – January 2018 3
*Probability of success cannot be predicted
Pipeline
Leading antibody platform:
over 100 active programs*,
28 in clinic
Tremfya®
Potential blockbuster,
offers lucrative royalty
opportunity
MOR208
Late-stage, proprietary
candidate with promising
data in DLBCL
Partnered Discovery
Maximizing utilization of technology
Lucrative source of revenue from licence
fees, milestones & royalties
Proprietary Development
Focus on oncology/inflammation
Retained rights translate into greater
revenue potential
Business ModelBuilding a Commercial, Product-Based Biopharmaceutical Company
© MorphoSys AG, Company Update – January 2018 4
Value
Time
Partnered
Discovery
Proprietary
Development
Our Clinical Pipeline28 Product Candidates in Clinical Development, First Product Launched
© MorphoSys AG, Company Update – January 2018 5
Program Partner Target Disease area Phase 1 Phase 2 Phase 3 Launched
Tremfya® (Guselkumab) Janssen IL-23p19 Psoriasis
Gantenerumab Roche Amyloid-ß Alzheimer’s disease
MOR208 - CD19 DLBCL, CLL/SLL
Anetumab Ravtansine (BAY94-9343) Bayer Mesothelin (ADC) Solid tumors
BHQ880 Novartis DKK-1 Multiple myeloma
Bimagrumab (BYM338) Novartis ActRIIB Musculoskeletal diseases
BPS804 Mereo/Novartis Sclerostin Brittle bone syndrome
CNTO6785 Janssen - Inflammation
Elgemtumab (LJM716) Novartis HER3 Cancer
MOR103/GSK3196165* GSK GM-CSF Inflammation
MOR202 I-Mab Biopharma** CD38 Multiple myeloma
Tesidolumab (LFG316) Novartis C5 Eye diseases
Utomilumab (PF-05082566) Pfizer 4-1BB Cancer
VAY736 Novartis BAFF-R Inflammation
Xentuzumab (BI-836845) BI IGF-1 Solid tumors
BAY1093884 Bayer TFPI Hemophilia
MOR106 Galapagos IL-17C Inflammation
MOR107 (LP2-3) Lanthio Pharma AT2-R Not disclosed
NOV–7 Novartis - Eye diseases
NOV–8 Novartis - Inflammation
NOV-9 Novartis - Diabetic eye diseases
NOV-10 Novartis - Cancer
NOV-11 Novartis - Blood disorders
NOV-12 Novartis - Prevention of thrombosis
NOV-13 Novartis - Cancer
NOV-14 Novartis - Asthma
PRV-300 (CNTO3157) ProventionBio TLR-3 Inflammation
Vantictumab (OMP-18R5) OncoMed Fzd 7 Solid tumors
12
13
2
*MOR103/GSK3196165 is fully outlicensed to GSK.
** For development in Greater Chinese Market (China, Hong Kong, Taiwan, Macao)
Partnered Discovery Programs
Proprietary Development Programs
MOR208: Proprietary Antibody in Hematological CancersAn Investigational Anti-CD19 Program for B Cell Malignancies
© MorphoSys AG, Company Update – January 2018 6
W Jurczak et al.; ASH 2016
The Drug Candidate
IgG1 kappa antibody targeting CD19
In-licensed from Xencor
Fc-engineered to enhance target cell-killing
Mode of Action
ADCC, phagocytosis, direct cytotoxicity
Strong Preclinical Package
Depletes B cells in in vitro and in vivo models
Rationale for multiple combination therapies
MOR208
Fc-enhancement
ADCC
ADCP
directcytotoxicity
ADCC: Antibody-Dependent Cell-Mediated Cytotoxicity
ADCP: Antibody-Dependent Cell-Mediated Phagocytosis
MOR208: Clinical Development PlanOpportunity Across Spectrum of B Cell Malignancies
© MorphoSys AG, Company Update – January 2018 7
Indication 2016 2017 2018 2019 2020
DLBCL
L-MIND
TRIAL
B-MIND
TRIAL
COSMOS
TRIAL
CLL
FDA Breakthrough
Therapy Designation
Lenalidomide + MOR208 in R/R DLBCL*
* Patients ineligible for high-dose chemotherapy and autologous stem-cell transplantation
Bendamustine + MOR208 vs. bendamustine + rituximab in R/R DLBCL*
MOR208 + idelalisib in R/R CLL BTKi-failures
MOR208 + venetoclax in R/R CLL BTKi-failures
Phase 2
Phase 3
MOR208: L-MIND Trial Response RatesMOR208 + Lenalidomide: ORR of 52% in a Phase 2 Study in R/R DLBCL Patients
© MorphoSys AG, Company Update – January 2018 8
*Differences due to rounding. R/R= relapsed/refractory; DLBCL = Diffuse Large B cell Lymphoma
CR, complete response; NE, not evaluable; ORR, objective response rate; PD, progressive disease; PR, partial response; SD, stable disease
Single-Arm phase 2 study of MOR208 combined with lenalidomide in patients with R/R DLBCL: L-MIND, ASH Abstract 2017 as of November 1, 2017.
CR: 32% (n=14)
PR: 20% (n=9)
SD: 14% (n=6)
NE: 14% (n=6)
0
20
40
60
80
100
n=44
Objective response
rate (ORR): 52%Best
Overa
ll R
esp
onse
(%
)* PD: 21%
(n=9)
MOR208: L-MIND Data in PerspectiveDuration of Response: Median Progression-Free Survival (PFS)*
© MorphoSys AG, Company Update – January 2018 9
* Note limitations of cross-trial comparisons; ** Preliminary data; RTX, Rituximab; BEN, bendamustine
3.2
3.7
5.8
6.7
11.3
0 2 4 6 8 10 12
MOR208 + lenalidomide**
Polatuzumab + RTX + BEN
Axi-CEL (CAR-T)
RTX + BEN
CTL019 (CAR-T)
Median PFS (months)
L-MIND Salles et al. 2017
Sehn et al., 2017
ZUMA-1, Neelapu et al, 2017
Dang et al., 2014
JULIET, Schuster et al., 2017
MOR202: Proprietary Anti-CD38 AntibodyAn Antibody for Multiple Myeloma & Potentially Other Cancers
© MorphoSys AG, Company Update – January 2018 10
The Drug Candidate
Developed to target a unique epitope on
CD38
ADCC & ADCP cell-killing mechanisms
Low NK cell depletion, which may translate
into longer duration of response
Clinical*
Efficacy
Responses ongoing in 65% of patients
Patient with longest time on study with
ongoing response: >22 months
Infusion time of 2h, shorter time being
explored
Potentially opportunities in other oncology
indications and auto-immune diseases
*From ongoing phase 1/2a trial: Raab et al., Poster presentation at ASCO, June 5, 2017: Abstract #8024
ADCC: Antibody-Dependent Cell-Mediated Cytotoxicity
ADCP: Antibody-Dependent Cell-Mediated Phagocytosis
ADCC
ADCP
MOR202: Efficacy EvaluationComparison of Response Data Among Study Cohorts
© MorphoSys AG, Company Update – January 2018 11
CR, complete response; NE, not evaluable; ORR, objective response rate; PD, progressive disease; PR, partial response; SD, stable disease;
VGPR, very good partial response; MR, marginal response; modified from Raab et al, ASCO 2017; ITT population shown
MOR202q1w + POM/DEX cohortsMOR202q1w + DEX cohorts MOR202q1w + LEN/DEX cohorts
VGPR: 11%
PR: 17%
MR: 11%
SD: 50%
PD: 6%
NE: 6%
n=18
ORR:
28%
Best
Overa
ll R
esp
onse
s (%
)
CR: 6%
VGPR: 18%
PR: 47%
SD: 6%
PD: 6%
NE: 18%
n=17
ORR:
71%
CR: 15%
VGPR: 8%
PR: 23%
MR: 23%
PD: 8%
NE: 15%
n=13
SD: 8%
ORR:
46%
100
80
60
40
20
0
MOR202: First Partnering DealAgreement with I-MAB Biopharma for Greater Chinese Market
© MorphoSys AG, Company Update – January 2018 12
Agreement signed November 30, 2017
I-MAB receives exclusive development and
commercialization rights in China, Taiwan,
Hong Kong and Macao
Payments to MorphoSys
$20 million upfront
Up to $100 million milestones
Tiered, double digit royalties
I-MAB’s head of R&D was formerly
responsible for the clinical development of
Daratumumab in China as Janssen China’s
head of development
MOR106: Phase 1 Study in Atopic DermatitisFirst Signs of Clinical Activity
© MorphoSys AG, Company Update – January 2018 13
*Patients with moderate-to-severe atopic dermatitis
The Drug Candidate
Ylanthia antibody against IL-17C, 50/50 co-development with Galapagos
Clinical
Top line results published end of September 2017:
No clinically relevant safety signals
At the highest dose level, 5 out of 6 patients (83%) reached an improvement of at least
50% in atopic dermatitis symptoms (EASI-50) by week 4
Results support progression to Phase 2 study
Single
ascending
dose
Multiple
ascending
dose
Healthy males, 7 cohorts, i.v. infusion (n=42)7-week
follow up
11-week
follow up
Placebo (n=14)
Patients*, 3 cohorts, weekly i.v. infusion for 4 weeks (n=18)
Placebo (n=6)
Partnered Discovery Program: Tremfya® (Guselkumab)Developed by Janssen in Inflammatory Indications
14© MorphoSys AG, Company Update – January 2018
The Drug
First-in-class IL-23-specific HuCAL antibody
Status
Approved in U.S., EU, Canada for moderate-to-severe
psoriasis
First royalties will be reflected in FY 2017 results
Differentiation
Compelling clinical efficacy
Convenience: 8-weekly s.c. dosing
Phase 3 Trials Ongoing
Head-to-head vs. Cosentyx® in psoriasis: ongoing
Psoriatic arthritis: 2 trials ongoing
Crohn’s disease: planned
Financial Guidance 2017* Updated November 30, 2017
*Guidance for revenues and EBIT includes royalty income on Tremfya® sales in Q3 2017. Royalty income based on Tremfya® sales in Q4 2017 will be booked in Q1 2018.
15
In € millionQ1-Q3 2017 Guidance 2017
(Issued March 9, 2017)
Guidance 2017 (Updated Nov. 30, 2017)
38.6 46 to 51 63 to 66
80.5 85 to 95 96 to 100
(53.8) (75) to (85) (66) to (71)
319.5 -
Group Revenues
Proprietary R&D Expenses
(incl. Technology Development)
EBIT
Cash, cash equivalents & marketable
securities as well as other short-term
and long-term financial assets
(end of reporting period)
© MorphoSys AG, Company Update – January 2018
Total shares issued (as of December 31, 2017): 29,420,785
MorphoSys is listed on the Frankfurt Stock Exchange under the symbol MOR
© MorphoSys AG, Company Update – January 2018
Proprietary Portfolio: Expected Newsflow 2018
Compound Indication Expected Newsflow
MOR208 DLBCLL-MIND: Updated development plan following BTD
interactions with FDA, Q1 2018
CLL COSMOS: Phase 2 data – mid 2019
MOR202
(I-MAB Biopharma*)Multiple myeloma
Further partnering discussions ongoing
Final data phase 1/2a study – late 2018
MOR106 Atopic dermatitis Start of phase 2 trial – Q2 2018
MOR103/
GSK3196165**Rheumatoid arthritis Data from phase 2b trial
Hand osteoarthritis Data from phase 2a trial
* For development in Greater Chinese Market (China, Hong Kong, Taiwan, Macao) **MOR103/GSK3196165 is fully outlicensed to GSK.
Phase 2 Phase 3
BSP804
Type I, III or IV Osteogenesis Imperfecta
(ASTEROID)
BSP804
Type I, III or IV Osteogenesis Imperfecta
(METEOROID)
Gantenerumab
Mild Alzheimer's disease
(open label extension)
Bimagrumab (BYM338)
Muscular atrophy after hip fracture surgery
Bimagrumab (BYM338)
Sarcopenia
Guselkumab
Pustular or Erythrodermic psoriasis
Tesidolumab (LFG316)
Geographic atrophy
(+ CLG561)
Tesidolumab (LFG316)
Panuveitis
Guselkumab
Moderate to severe plaque psoriasis
Tesidolumab (LFG316)
Paroxysmal nocturnal hemoglobinuria
VAY736
Rheumatoid arthritis
Guselkumab
Moderate to severe plaque psoriasis
(ECLIPSE; Head-to-head with Cosentyx®)
VAY736
Primary Sjögren's syndrome
VAY736
Pemphigus vulgaris
Guselkumab
Moderate to severe plaque psoriasis
(POLARIS; Comparison to Fumaric Acid
Esters)
Xentuzumab (BI-836845)
Prostate cancer (+ enzalutamide)
Xentuzumab (BI-836845)
Breast cancer
Guselkumab
Palmoplantar pustulosis
Guselkumab
Severe plaque psoriasis
Partnered Pipeline: Expected Primary Completion DatesUp to 19 Clinical Phase 2 and 3 Read-outs Potentially Due in 2018*
© MorphoSys AG, Company Update – January 2018 17
*Anticipated primary completion dates, according to clinicaltrials.gov
Our Future
18© MorphoSys AG, Company Update – January 2018
A fully-integrated
biopharmaceutical company
Attractive partner for big pharma
and biotech
Innovative science and technology
driving expansion of proprietary
portfolio
Commercializing own products in
selected geographies
Lucrative milestone & royalty
streams from deep partnered
pipeline
www.morphosys.com
Thank You
MOR208, MOR202, MOR106, MOR103, anetumab ravtansine, gantenerumab and all other product candidates mentioned here are investigational drugs and have not been
approved by the FDA or other ex-US regulatory agencies. HuCAL® , HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay®, RapMAT®, arYla®, Ylanthia®, 100 billion high
potentials®, Slonomics®, Lanthio Pharma® and LanthioPep® are registered trademarks of the MorphoSys Group. Tremfya® is a trademark of Janssen Biotech, Inc.
Anke Linnartz
Head of Corporate Communications & IR
Phone +49 (0)89 / 899 27-404
Fax +49 (0)89 / 899 27-5404
Email [email protected]