Bank of America Merrill Lynch Global Healthcare Conference Company Update. September 17, 2015

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Company Update

September 17, 2015

Bank of America Merrill Lynch

Global Healthcare Conference 2015

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Safe Harbor

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.

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Partnered Pipeline Providing Strong Foundation and Multiple Near-Term Catalysts

 Phase 3 data for bimagrumab (Novartis) and guselkumab (J&J/Janssen) expected in 2016  Over 20 clinical studies likely to be completed before the end of 2016

Multiple Therapeutic Programs with

Best-in-Class Potential

MOR208: Aimed at Shortcomings of Current Lymphoma and Leukemia Treatments

 Promising single agent results in NHL and CLL

 Comprehensive set of combo trials commencing in 2015 & 2016

 Pivotal trial aimed to start in 2017

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Committed to Bringing to Market Differentiated Antibody and Peptide Therapeutics Broad Pipeline of Differentiated Proprietary Therapeutics

 MOR202: Unique CD38 antibody in multiple myeloma

 MOR209: Bi-specific antibody in Phase 1 for mCRPC; MOR106 & MOR107 in pre-clinic

 Continued investment in technology leadership drives pipeline growth

Experienced Team Driving the Next Stage of Growth

 Cross-functional team with long track record of leadership

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The MOR Portfolio

Program Indication Target Discovery Preclinic Phase 1 Phase 2 Phase 3

Unpartnered

MOR208 NHL

CD19 CLL

ALL

MOR202 Multiple myeloma CD38

MOR107 Fibrosis AT2-R

Immuno-oncology programs

(Immatics) Cancer Various

7 Programs Various Various

Co-development & co-promotion MOR209/ES414

(Emergent) Prostate cancer PSMA / CD3

MOR106

(Galapagos) Inflammation Undisclosed

Immuno-oncology programs

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MOR208: Addressing Shortcomings in Treating

B-Cell Malignancies

DRUG  Fc-enhanced, humanized IgG1 antibody

 Fc modification leads to dramatically enhanced B cell depletion via ADCC, phagocytosis, direct cytotoxicity

 Convenient dosing schedule, straightforward manufacturing

 Fast Track Designation in DLBCL; FDA & EMA Orphan Drug Status in DLBCL & CLL TARGET

CD19

 CD19 has a strong rationale in B cell malignancies

 Constant expression levels of CD19 across all B cell cancers in contrast to CD20

 Patients show regulation of CD20 after anti-CD20 treatment; CD19

down-regulation is not described

 Novel TKIs efficacious but characterized by challenging side effects; patients relapsing on TKIs have very unfavorable prognosis

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SD, PD & Non-evaluable

MOR208 Could Be Superior to Other CD19 &

CD20 MAbs in Relapsed/Refractory CLL

anti-CD19 MAbs anti-CD20 MAbs

38% 24% 30% 23% 13% MOR208 12mg/kg (n=16) MEDI-551 phase 1/2 12mg/kg (n=26) Obinutuzumab phase 2 (n=20) Ofatumumab phase 3 (n=196) Rituximab (n=110) Response Rates Based on IWCLL2008 Criteria

ORR

MEDI-551 data source: Poster ASCO 2013, 12mg/kg dosing group Obinutuzumab data source: GAUGUIN study, Cartron et al, Blood 2014

Ofatumumab data source: control arm in ibrutinib vs. O phase 3 trial (RESONATE, ASCO 2014) Rituximab data source: Late breaking abstract #6, ASH 2013 Criteria: Hallek et al 2008 (including CT)

[NR – not reported] mPFS

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MOR208: Multiple Studies to Start in 2015/2016

7 © MorphoSys - September 2015 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): Pedriatic ALL, MOR208 (12mg/kg) plus NK cells, N=13

*no outlook given beyond 2018

STATUS  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 3 Phase 2 IIT

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MOR202:

A Novel Antibody for Multiple Myeloma

OPPORTUNITY  Multiple myeloma (MM) treatment – a large commercial opportunity  leading already generate > US $ 5.0 billion in worldwide sales  CD38 market peak sales are expected in US$ billions worldwide

 First clinical data hint at a balanced and potentially best-in-class safety/efficacy profile

DRUG  High affinity HuCAL IgG1 antibody

 Potent ADCC and ADCP, full killing activity on MM cells and low killing activity on healthy/effector cells, and low/no CDC

 Strong synergy with IMiDs and proteasome inhibitors in pre-clinical models

 Best-in-class infusion tolerability as consistent 2-hour infusion

 MorphoSys regained all rights from Celgene TARGET

CD38

 Antibody binds to a unique epitope on CD38

 CD38 has a compelling scientific rationale based on the highest expression levels of any antibody target in MM

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2015 2016 2017 2018*

MM

MOR202: Clinical Development Plan

STATUS  Phase 1/2a clinical trial in MM ongoing

 Cohorts ongoing:

 MOR202 16mg/kg weekly + Dex  MOR202 + LEN + Dex

 MOR202 + POM + Dex

 Encouraging early signs of activity already at low doses

 Higher level of activity expected at further doses giving full target saturation

Phase 1/2a MOR202 (8 and 16mg/kg) plus lenalidomide or pomalidomide and confirmation cohorts (N~24)

Phase 1/2a MOR202 mono, dose escalation, plus confirmation cohorts (N~62)

Phase 3: MOR202 combination therapy

Phase 3 Phase 2

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TARGET

PSMA/CD3

 PSMA expressed in normal and hyperplastic prostate tissue, expression levels increase with prostate cancer progression

 CD3 on cytotoxic T-cells

OPPORTUNITY  Prostate cancer is the most common and second most lethal cancer in men

 Current treatments provide only a 2-4.5 months increase in OS for metastatic CRPC patients

 Global market for mCRPC therapeutics expected to exceed US$ 5.1 billion in 2022

MOR209/ES414: A Bi-specific

Immunotherapeutic Against Prostate Cancer

DRUG  Bi-specific ADAPTIR antibody

 Directs T cells to kill PSMA+ tumor cells in vitro and in vivo  Reduced cytokine release on T cell activation in preclinical

models compared to other formats

 Prolonged serum half-life in mouse and NHP compared to antibody fragments

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2015 2016 2017 2018*

mCRPC

MOR209/ES414: New Treatment Option in

mCRPC

STATUS  Preclinical studies successfully concluded, promising results presented in 2013

 Pharmacologically active and well tolerated

 Shows activity at very low doses

 Phase 1 in mCRPC in the U.S. and Australia ongoing

 Stage 1: identify MTD of MOR209/ES414 administered iv

 Stage 2: evaluate clinical activity in patients that have or have not received prior chemotherapy

NEXT  First clinical data expected in 2016

MOR209/ES414: Phase 1/2 dose escalation (N~50)

MOR209/ES414: Phase 1/2 dose extension (N~80)

Phase 3 preparations

Phase 3 Phase 2

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Leveraging Technology Leadership

Antibodies Peptides GPCR target Immuno-oncology

Slonomics – 2010  Enables very efficient antibody optimization Ylanthia - 2011  Largest Fab antibody library  Based on the expertise gained in building and using HuCAL in drug discovery and development LanthioPharma - 2015  Stabilized peptide technology complements existing antibody drug discovery platform Heptares – 2013  Delivers challenging GPCRs in stabilized form as drug targets G7 Therapeutics -2015  Delivers tailor-made GPCRs as drug targets MerckSerono - 2014  Antibodies against immune checkpoints Immatics - 2015  Antibody-based therapies targeting tumor-associated peptides

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Programs Being Developed by Partners (I)

Program Partner Target Indication Phase 1 Phase 2 Phase 3

Bimagrumab Novartis ActRIIB sIBM (52 weeks)

(BYM338) sIBM (long-term study)

Cachexia (COPD) Cachexia (cancer) Hip fracture surgery Sarcopenia

Guselkumab Janssen/J&J IL23p19 Psoriasis (VOYAGE 1)

(CNTO1959) Psoriasis (VOYAGE 2)

Psoriasis (NAVIGATE)

Pustular/Erythrodermic Psoriasis Moderate to severe psoriasis Active psoriatic arthritis Gantenerumab Roche Amyloid-ß Mild Alzheimer‘s disease Genetically predisposed BHQ880 Novartis DKK-1 MM (renal insufficiency)

Smoldering MM BPS804 Mereo/Novartis Sclerostin Osteoporosis

Hypophosphatasia (HPP) Osteogenesis Imperfecta CNTO3157 Janssen/J&J n.d. Asthma

Safety/Pharmacokinetic CNTO6785 Janssen/J&J n.d. COPD

Rheumatoid arthritis

LFG316 Novartis C5 Wet AMD

Geographic atrophy

Multifocal Choroiditis and Panuveitis Dry AMD

Paroxysmal nocturnal hemoglobinuria

Contract Discovery Outlicensed

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Programs Being Developed by Partners (II)

Program Partner Target Indication Phase 1 Phase 2 Phase 3

LJM716 Novartis HER3 ESCC (combo with BYL719)

HER2+ cancer (combo with BYL719 & trastuzumab)

HER2+ cancer, combo with trastuzumab

HER2+ cancer

Advanced solid tumors MOR103/GSK3196165 GlaxoSmithKline GM-CSF Rheumatoid Arthritis Tarextumab Oncomed/GSK Notch 2 Pancreatic cancer (ALPINE)

(OMP-59R5) Small cell lung cancer (Pinnacle)

Solid tumors BAY94-9343 Bayer Mesothelin Solid tumors

Advanced malignancies (Japan) BI-836845 BI IGF-1 Solid tumors, Japanese patients

EGFR mutant NSCLC Breast cancer

CRPC + enzalutamide Various solid cancer Advanced solid tumors

NOV-7 Novartis n.d. Eye disease

NOV-8 Novartis n.d. Inflammation

NOV-9 Novartis n.d. Diabetic eye disease

NOV-10 Novartis n.d. Cancer

NOV-11 Novartis n.d. Blood disorders

PF-05082566 Pfizer 4-1BB Solid tumors, NHL (+rituximab) Solid tumors, combination with PD-1 inhibitor MK-3475

Advanced solid tumors, combo with mogamulizumab

VAY736 Novartis BAFF-R Pemphigus vulgaris

Primary Sjögren‘s syndrome Primary Sjögren‘s syndrome Vantictumab Oncomed/Bayer Fzd 7 Solid tumors

(OMP-18R5) Breast cancer

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Bimagrumab (BYM338): A Novartis

Musculoskeletal Program

[*] A Amatoet al; Neurology; Nov 7, 2014, online [1] Statistically significant difference

DRUG Lead indication: sporadic inclusion body myositis (sIBM)

 FDA breakthrough therapy designation

 Orphan drug designation

CLINICAL DATA

 Potential novel treatment of sIBM

 Phase 2 results in sIBM[*]_:

 Muscle mass increased substantially from baseline, approx. 5% more than placebo  Muscle gain was functional as supported

by parallel increases in strength and 6-minute walking distance

NEXT  Pivotal study in sIBM with 240 patients ongoing, completion scheduled in Q4 2015

 Data expected in H1 2016

 Listed by Novartis as “planned filing 2016”

 Phase 2 read-outs in hip fracture surgery, sarcopenia expected in 2016

Supportive initial data in sIBM

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CLINICAL DATA

Guselkumab has potential to provide unique value to patients:

 Highest levels of durable skin clearance with less intensive dosing regimens vs. anti-IL-17 class

 Potential for similar safety profile vs. long-term blockade of IL-12 + 23 with STELARA®

 Potential for long-term, drug-free efficacy

Guselkumab (CNTO1959) – A Janssen

Anti-Inflammatory Program

DRUG  HuCAL antibody specific for IL-23, does not bind IL-12

 IL-23 blockade inhibits production of multiple cytokines beyond IL-17A and preserves Th1 & Treg regulatory pathways*

 Being developed in psoriasis and psoriatic arthritis

NEXT  Phase 3 data in 2016

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Financial Guidance 2015

in € million 2014A H1 2015 Guidance 2015

Group Revenues 64.0 82.6 101 to 106

Proprietary R&D Expenses

(incl. Technology Development) 36.4 25.3 56 to 63

EBIT -5.9 46.1 9 to 16

Cash, cash equivalents & marketable securities as well as other short-term and long-term financial assets

352.8 324.9

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Clinical Trials Scheduled for Completion

PHASE 2 PHASE 3 PHASE 1 2016 2015

Potential data events based on clinical trial design & MorphoSys estimates Partnered Programs LJM716

ESCC, combo w/BYL719 LFG316 Dry AMD MOR208 NHL (mono - update) Guselkumab Psoriasis (VOYAGE 2) Guselkumab Psoriasis (VOYAGE 1) Bimagrumab sIBM Guselkumab Psoriasis (NAVIGATE) MOR202 Multiple myeloma MOR208 - IST

CLL (combo with len)

LFG316 PNH

LJM716

HER2+ cancer (combo) LJM716

Advanced solid tumors CNTO6785

Rheumatoid arthritis CNTO6785

COPD TarextumabPancreatic cancer

Tarextumab Solid tumors Vantictumab Solid tumors Vantictumab Pancreatic cancer Vantictumab NSCLC Vantictumab Breast cancer BAY94-9343 Solid tumors BI-836845

Solid tumors (Japan) BI-836845

NSCLC BI-836845

Various solid cancer

BI-836845

Advanced solid tumors LFG316 MCP MOR209 Prostate cancer

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Bimagrumab Sarcopenia

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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-Löser

Head of Corporate Communications & IR Phone +49 (0)89 / 899 27-122

Fax +49 (0)89 / 899 27-5122 Email investors@morphosys.com

Bank of America Merrill Lynch Global Healthcare Conference Company Update. September 17, 2015

Company Update

September 17, 2015