Commerzbank Sector Conference Week. Company Update August 27, 2013

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Company Update

August 27, 2013

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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.

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Highlights

Strong Financial Position

 Recurring cash-flows

 Sale of AbD, GSK & Celgene deals strengthen balance sheet

Two Major Alliances for Proprietary Antibodies

 Alliance with Celgene for co-development & co-promotion of MOR202  Successful out-licensing of MOR103 to GSK

Pipeline Progress

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The MorphoSys Pipeline

21 Clinical Programs, 81 Total

Program Partner Target Indication Discovery Preclinic Phase 1 Phase 2 Phase 3

Gantenerumab Roche Amyloid-ß Alzheimer’s Disease

MOR103

(2 programs) GSK GM-CSF

Rheumatoid Arthritis Multiple Sclerosis Guselkumab (CNTO1959)

(2 programs) Janssen/J&J IL23p19

Psoriasis

Rheumatoid Arthritis

BHQ880 Novartis DKK-1 Cancer

Bimagrumab (BYM338) Novartis ActRIIB Musculoskeletal

NOV – 3 Novartis - not discl.

LFG316 Novartis C5 Ophthalmology

OMP-59R5 OncoMed/GSK Notch 2 Cancer

MOR208 - CD19 CLL, NHL, ALL

MOR202 Celgene/MOR CD38 Multiple Myeloma

BAY94-9343 Bayer Healthcare Mesothelin (ADC) Cancer

BI – 1 BI - not discl.

CNTO3157 Janssen/J&J - Asthma

CNTO – 5 Janssen/J&J - Inflammation

VAY736 Novartis BAFF-R Inflammation

LJM716 Novartis HER3 Cancer

Vantictumab (OMP-18R5) OncoMed/Bayer Fzd 7 Cancer

PFE – 1 Pfizer - Cancer

NOV - 7 Novartis - Ophthalmology

22 Programs Various Partners - Various Indications

38 Programs Various Partners _{3 Proprietary Pr.}- Various Indications 74 Partnered Programs

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MOR202

A Novel Antibody for Multiple Myeloma

Large Market and Unmet Need

 Revenues with approved drugs in MM exceed $2bn

 Responders eventually relapse or become refractory to existing therapies

MOR202

 High affinity HuCAL antibody targeting CD38 Competitive Profile

 Preclinical data show strong synergy in combinations of MOR202 with Velcade or Revlimid

Clinical Development

 Phase 1/2a clinical trial in relapsed or refractory MM patients currently ongoing

Strategic Alliance with Celgene

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Alliance with Celgene for MOR202

Scope  Global co-development and European co-promotion agreement

Up-front  MOR receives EUR 70.8 million

Equity  Celgene pays EUR 46.2 million for 3.4%

stake in MOR at EUR 57.90 per share

 53% premium to pre-announcement price

Milestones  Up to EUR 511 million in development, regulatory and sales milestones

Commercialization  Co-promotion in Europe with 50:50 profit share

 Exclusive Celgene in rest-of-world, tiered double digit royalties to MOR

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MOR103

Global License Agreement with GSK

MOR103

 Ultra-high affinity HuCAL IgG1 targeting GM-CSF

 Potential for superior efficacy and better safety than current treatments

 Phase 1b/2a trial in RA successfully completed  Phase 1b in MS ongoing

GSK assumes global responsibility for clinical development and commercialization of MOR103 in all indications

MorphoSys receives…

 EUR 22.5 million upfront payment

 Up to EUR 423 million in success-based payments  Tiered, double-digit royalties on net sales

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0 10 20 30 40 50 60 70 0 1 2 3 4 MOR103 1 mg/kg mavrilimumab Humira Orencia Actemra

MOR103

Compelling Clinical Data

Time (weeks) % of p at ient s

ACR20*

 Very fast onset of therapeutic effect

DAS28

 Durable response Week M e an ch ang e fr om b as e li ne

 Clean safety profile

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MOR208 (XmAb5574)

A Novel Anti-Cancer Antibody

 Large unmet medical need in NHL, CLL & ALL

 Revenues with approved drugs for B cell malignancies exceed $5bn

MOR208

 Anti-CD19 antibody in-licensed from Xencor

 CD19 expressed earlier than CD20  potential greater efficacy vs. anti-CD20s

 Proprietary modification in Fc region  increased ADCC  rapid & sustained B-cell depletion

 Minor modification means convenient dosing schedule,

straightforward manufacturing

 Blinatumomab data validate CD19 as target for B-cell

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MOR208

Phase 1/2a Trial in CLL/SLL

Trial Design

 Phase 1, multi-center, US study in heavily pre-treated, relapsed

or refractory CLL/SLL patients

 Dosage 0.3 mg/kg - 12 mg/kg; days 1&4, weeks 2-8

Results

 Acceptable safety profile

 Responses observed in 67% of patients by physical exam  4/27 (15%) partial responses and 20/27 (74%) patients with

stable disease (IWCLL 2008 criteria including CT)

 Full results from trial extension expected in Q3 2013

Phase 2

 Phase 2 trials in ALL and NHL ongoing

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The MorphoSys Pipeline

21 Clinical Programs, 81 Total

MOR103

Psoriasis

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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

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Gantenerumab: The Most Advanced Antibody in

Development for Alzheimer’s Disease

Gantenerumab

 High affinity HuCAL antibody targeting amyloid-β  Binds & breaks down amyloid-β fibrils and plaques Clinical Development

 Phase 1: gantenerumab reduces brain amyloid 3x

faster than other amyloid-targeting substances

 Pivotal Phase 3 study ongoing

 770 prodromal patients, 2 doses (105mg & 225mg s.c.), placebo-controlled

 104 weeks on drug, with an option for an additional 2 years of treatment

 Primary Endpoint: Change in the Clinical

Dementia Rating Scale Sum of Boxes (CDR-SOB)

 Sub-study: Change in brain amyloid over time assessed by PET

 Interim safety analysis in 2013

 Data expected 2016

Data from Phase 1

Effect of gantenerumab on amyloid load as indexed by PET

SUVR at end of treatment

% Amy lo id c ha nge fro m ba se li ne

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The MorphoSys Pipeline

21 Clinical Programs, 81 Total

MOR103

Psoriasis

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Bimagrumab (BYM338)

A Novartis Musculoskeletal Program

Bimagrumab is a HuCAL antibody against ActRIIB

 Novartis received FDA breakthrough therapy

designation for sporadic inclusion body myositis (sIBM)

 Phase 2 study showed that bimagrumab substantially benefited patients with sIBM

 Results will be presented at the American

Neurological Association meeting on Oct. 14, 2013

 In Phase 2 development for

 Sporadic inclusion body myositis

 Cancer-related cachexia

 COPD-related cachexia

 Sarcopenia

 Mechanically ventilated patients Recently Highlighted by Novartis

 “Imagine the equivalent of 8 or 10 weeks of exercise in one injection”

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The MorphoSys Pipeline

21 Clinical Programs, 81 Total

MOR103

Psoriasis

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Guselkumab

A Janssen Anti-Inflammatory Program

Guselkumab is a HuCAL antibody against IL-23

 Phase 2 development for psoriasis

 Phase 2 study vs. Stelara in rheumatoid arthritis Specific for IL23

 Guselkumab binds the p19 sub-unit of IL-23, while Stelara binds the p40 sub-unit of IL-23 and IL-12 Highlighted at Janssen’s Last Analyst Day

 Listed under “planned filings 2013 – 2017”

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Next Generation Drug Discovery Technologies

Ylanthia

 Totally new antibody platform

 Higher quality antibodies, greater diversity  faster access to superior drug leads

 US patent granted January 2013 Antibodies Against GPCRs

 MorphoSys secures access to stabilized GPCRs produced by Heptares

 MorphoSys will make and offer antibodies against GPCRs

 Most important target class; challenging for antibodies Lantipeptides

 MorphoSys collaborates with Lanthio Pharma to develop lantipeptide libraries for drug discovery

 Preferred rights to exclusive license

 MorphoSys has minority equity position

UK-based GPCR drug discovery & development company with

proprietary StaR®_{technology for}

generating stabilized receptors

Dutch start-up focused on lantipeptides: cyclic peptides showing high target selectivity and improved drug-like properties

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Shareholdings

52% 6% 20% 18,5% Institutional Investors - 52% Novartis - 6% Treasury Stock - 1.5%

Management & Supervisory Boards - 2% Retail Investors - 20%

Unidentified Investors - 18.5%

2% 1.5%

Geographic Split of Institutional Holdings

USA: 58% Scandinavia: 12% United Kingdom: 10% Switzerland: 7% Benelux: 6% Germany: 5%

MorphoSys AG (FSE: MOR, Prime Standard, TecDAX; OTC: MPSYY)

Shares issued: 23,400,632 (June 30, 2013) / Treasury stock: 339,890 (June 30, 2013)

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Key Financials

in EUR million H1 2013 Guidance 2013*

Group Revenues 48.2 74 – 78

EBIT 17.3 2 to 6

Cash & Marketable Securities and Interest-bearing

Assignable Loans as of June 30, 2013 166.3**

* Updated following MOR202 regulatory clearance (August 10, 2013) ** Cash position does not include any payments from GSK or Celgene

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Progress in Proprietary Portfolio 2013

MOR103

 Partnership for further development

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 Multiple sclerosis Phase 1b study continues

MOR208

 ALL Phase 2 study to commence

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 NHL Phase 2 study to commence

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 Clinical data from Phase 1b extension

MOR202

 Partnership with Celgene

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 MM Phase 1/2a study continues  First clinical data expected

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MOR208

CLL (extension arm)

Gantenerumab AD/Japan

Clinical Trials Scheduled for Completion

Potential data events based on clinical trial design & MorphoSys estimates Bimagrumab Sarcopenia BHQ880 Smoldering MM MOR208 B-ALL Bimagrumab Cachexia (cancer) LFG316 MCP LFG316 AMD Guselkumab RA (vs. Stelara) LFG316 AMD Guselkumab Psoriasis Bimagrumab Cachexia (COPD) LJM716 Combo OMP-59R5 Solid Tumors BI-1 undisclosed BI-1 undisclosed Guselkumab Psoriasis (Japan) BAY94-9343 (ADC) Solid Tumors Gantenerumab Liquid vs. Lyophilized OMP-18R5 Solid Tumors MOR103 Multiple sclerosis 2013 NOV-3 undisclosed NOV-3 undisclosed 2014 Phase 3 Phase 2 Phase 1 Partnered Proprietary Phase 2 Phase 1 Guselkumab Devices/Formulation BHQ880 MM/Renal Insufficiency Bimagrumab Ventilated Patients NOV-3 Undisclosed LJM716 Single Guselkumab Palmoplantar Postulosis CNTO3157 Asthma

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HuCAL®_{, HuCAL GOLD}®_{, HuCAL PLATINUM}®_{, CysDisplay}®_{, RapMAT}®_{, arYla}®_{, Ylanthia}®_{and 100 billion high potentials}®_{are registered trademarks of MorphoSys AG.}

® _.

Dr. Simon Moroney

Chief Executive Officer

Phone +49 (0)89 / 899 27-311 Fax +49 (0)89 / 899 27-5311 Email investors@morphosys.com

Commerzbank Sector Conference Week. Company Update August 27, 2013

Company Update

Safe Harbour

Highlights

The MorphoSys Pipeline

21 Clinical Programs, 81 Total

MOR202

A Novel Antibody for Multiple Myeloma

Alliance with Celgene for MOR202

MOR103

Global License Agreement with GSK

MOR103

Compelling Clinical Data

ACR20*

DAS28

MOR208 (XmAb5574)

A Novel Anti-Cancer Antibody

MOR208

Phase 1/2a Trial in CLL/SLL

The MorphoSys Pipeline

21 Clinical Programs, 81 Total

Gantenerumab: A HuCAL Antibody Being

Developed by Roche for Alzheimer’s Disease

Gantenerumab: The Most Advanced Antibody in

Development for Alzheimer’s Disease

The MorphoSys Pipeline

21 Clinical Programs, 81 Total

Bimagrumab (BYM338)

A Novartis Musculoskeletal Program

The MorphoSys Pipeline

21 Clinical Programs, 81 Total

Guselkumab

A Janssen Anti-Inflammatory Program

Next Generation Drug Discovery Technologies

Shareholdings

Key Financials

Progress in Proprietary Portfolio 2013

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Clinical Trials Scheduled for Completion

Thank You