Company Update
© MorphoSys - April 2015
April 2015
1
Safe Harbor
© MorphoSys - April 2015
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
Investment Case
© MorphoSys - April 2015
Strong balance sheet and recurring cash-flows
Sustains investment in R&D
Broadest antibody pipeline in the industry, based on HuCAL & Ylanthia
94 programs, 23 antibodies in clinical trials
Growing portfolio with currently 10 proprietary programs
Favorable economics
3
MorphoSys is committed to developing
a valuable pipeline of truly differentiated therapeutic antibodies
built using proprietary technologies
The MorphoSys Pipeline
23 Clinical Programs, 94 Total
© MorphoSys - April 2015 4
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
MOR103 GSK GM-CSF Rheumatoid arthritis
MOR208 - CD19 ALL, CLL, NHL
BHQ880 Novartis DKK-1 Multiple myeloma
CNTO3157 Janssen - Inflammation
CNTO6785 Janssen - Inflammation
LFG316 Novartis C5 Eye diseases
LJM716 Novartis HER3 Cancer
NOV–3 Novartis - not discl.
Tarextumab (OMP-59R5) OncoMed Notch 2 Solid tumors
VAY736 Novartis BAFF-R Inflammation
MOR202 - CD38 Multiple myeloma
MOR209/ES414 Emergent PSMA/CD3 Prostate cancer
BAY94-9343 Bayer Mesothelin (ADC) Solid tumors
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
PF-05082566 Pfizer 4-1BB Solid tumors
Vantictumab (OMP-18R5) OncoMed Fzd 7 Solid tumors
MOR106 Galapagos - Inflammation
25 programs Various - Various
Immuno-oncology program Merck Serono - Cancer
4 MOR programs - - Various
40 programs Various - Various
84 Partnered Programs
10 MOR Programs
Most advanced development stage
The MorphoSys Proprietary Portfolio
© MorphoSys - April 2015
Program Indication Discovery Preclinic Phase 1 Phase 2 Phase 3 Next Event
Unpartnered
MOR208 ALL Phase 2 IST + NK cells
NHLPhase 2 mono-therapy data update
Start of combo trials
CLLData from IST combo trial
Start of new combo trials
MOR202 Multiple myelomaStart of combo cohorts
Phase 1/2a data
Co-development & co-promotion with Emergent BioSolutions
MOR209/ES414 Prostate cancer Phase 1 data
Licensed to GSK (tiered, double-digit royalties)
MOR103 Inflammation Phase 2b study in RA
Early-stage programs
MOR106 Inflammation Start of phase 1 in 2016
Immuno-oncologyprogram
Cancer
4 Programs Various
5
MOR208
A Novel Antibody to Treat B cell Malignancies
© MorphoSys - April 2015 6
DRUG Fc-enhanced, humanized antibody targeting CD19
Fc modification leads to dramatically enhanced B cell depletion
Convenient dosing schedule, straightforward manufacturing
Fast Track Designation in DLBCL; FDA & EMA Orphan Drug Status in DLBDL and CLL/SLL
CLINICAL Phase 2 clinical development in NHL, CLL/SLL and ALL
NHL
Focus on 4 sub-types DLBCL, FL, MCL and other iNHL
Encouraging single agent activity
CLL/SLL
Encouraging single agent activity
ALL
Signs of activity, but ORR not sufficient to justify continuation with mono-therapy:
Phase 2 mono-therapy trial in ALL discontinued
NEXT NHL
Updated phase 2 mono-therapy data at ASCO
DLBCL: Initiate two combo trials, + lenalidomide & + bendamustine, H2 2015
CLL: Initiate combo trials, Q4 2015/Q1 2016
ALL: Initiate pediatric phase 2 IST, + NK cell transfer from parental donor (with St.
Jude Children's Research Hospital, USA)
* Patients who have completed two cycles of treatment and subsequently received disease response assessment
MOR208 Demonstrates Efficacy in DLBCL, FL
and iNHL
© MorphoSys - April 2015 7
Efficacy outcome, n (%) DLBCL
(n=35)
FL
(n=31)
iNHL
(n=11)
MCL
(n=12)
Overall
(n=89)
Complete Response 2 (6%) 1 (3%) 1 (9%) 0 4 (4%)
Partial Response 7 (20%) 6 (19%) 3 (27%) 0 16 (18%)
Stable Disease 5 (14%) 14 (45%) 3 (27%) 6 (50%) 28 (31%)
Progressive Disease 11 (31%) 4 (13%) 3 (27%) 5 (42%) 23 (26%)
Not evaluable 10 (29%) 6 (19%) 1 (9%) 1 (8%) 18 (20%)
ORR (all pts in cohort) 9 (26%) 7 (23%) 4 (36%) 0 20 (22%)
ORR (evaluable patients*) 9 (36%) 7 (28%) 4 (40%) 0 20 (28%)
Blum et al. #3089, ASH 2014
International, multi-center, open-label phase 2 study
12 mg/kg MOR208 weekly
Two-stage design (total of 120 patients)
Stage 1: 10 patients per subgroup
Stage 2: 20 patients per subgroup (with at least 2 PR in stage 1)
Cycle 1 Cycle 2 Cycle 3Maintenance
(bi-weekly or monthly)> PR> SD
MOR208 is Superior to Other CD19 & CD20
MAbs in Relapsed/Refractory CLL
© MorphoSys - April 2015 8
α-CD19 MAbs α-CD20 MAbs
38%24% 30%
23%13%
MOR20812mg/kg(n=16)
MEDI-551phase 1/212mg/kg(n=26)
Obinutuzumabphase 2(n=20)
Ofatumumabphase 3(n=196)
Rituximab(n=110)
Response Rates Based on IWCLL2008 Criteria
ORR
SD, PD &
Non-evaluable
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)
mPFS
(mo.)15 nr 10.7 8 5.5
MOR202
A Novel Antibody for Multiple Myeloma
© MorphoSys - April 2015 9
DRUG High affinity HuCAL antibody targeting CD38
Binds to a unique epitope
Ability to kill MM cells in vitro and across
multiple in vivo models (ADCC & ADCP)
2 hour infusion time
MorphoSys regained all rights from Celgene
DATA Strong synergy with IMiDs (lenalidomide and
pomalidomide) and proteasome inhibitors
(bortezomib) in pre-clinical models
NEXT First clinical data to be presented at ASCO
2015 (mono-therapy)
Additional cohorts with weekly dosing
schedule, with and without dexamethasone
ongoing
Combination cohorts with pomalidomide and
lenalidomide to start in H1 2015; Celgene will
supply both IMiDs on preferred terms
MOR202 Shows High ADCC and ADCP
Activity as Single Agent
MOR209/ES414 - A Bi-specific
Immunotherapeutic Against Prostate Cancer
© MorphoSys - April 2015 10
DRUG Bi-specific anti-PSMA/anti-CD3 immunotherapeutic:
targeting PSMA on prostate cancer cells
targeting CD3 on cytotoxic T cells
Redirects T cells to kill tumor cells expressing PSMA
in vitro and in vivo
DATA Reduced cytokine release upon T cell activation
compared to other formats
Prolonged serum half-life in mouse and NHP
compared to antibody fragments
Well-tolerated in NHP single-dose and repeat-dose
studies
NEXT Phase 1 in mCRPC in the U.S. and Australia initiated
Stage 1: identify MTD of MOR209/ES414
administered iv
Stage 2: evaluate clinical activity in patients that
have or have not received prior chemotherapy
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
BHQ880 Novartis DKK-1 MM (renal insufficiency)
Smoldering MM
LFG316 Novartis C5 Wet AMD
Geographic atrophy
MCP
NOV-3 Novartis n.d. n.d.
VAY736 Novartis BAFF-R Pemphigus vulgaris
Primary Sjögren's syndrome
RRMS
LJM716 Novartis HER3 ESCC (combo with BYL719)
HER2+ cancer (combo with
BYL719 & trastuzumab)
HER2+ cancer, combination with
trastuzumab
HER2+ 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
Partnered Clinical Pipeline (I)
© MorphoSys - April 2015 11
Program Partner Target Indication Phase 1 Phase 2 Phase 3
Guselkumab Janssen/J&J IL23p19 Psoriasis (VOYAGE 1)
(CNTO1959) Psoriasis (VOYAGE 2)
Psoriasis (NAVIGATE)
Pustular/Erythrodermic Psoriasis
Moderate to severe psoriasis
Rheumatoid arthritis
Palmoplantar pustulosis
Active psoriatic arthritis
Gantenerumab Roche Amyloid-ß Mild Alzheimer‘s disease
Genetically predisposed
CNTO3157 Janssen/J&J n.d. Asthma
Safety/Pharmacokinetic
CNTO6785 Janssen/J&J n.d. COPD
Rheumatoid arthritis
Tarextumab Oncomed/GSK Notch 2 Pancreatic cancer (ALPINE)
(OMP-59R5) Small cell lung cancer (Pinnacle)
Solid tumors
Vantictumab Oncomed/Bayer Fzd 7 Solid tumors
(OMP-18R5) Breast cancer
Pancreatic cancer
NSCLC
BAY94-9343 Bayer Mesothelin Solid tumors
BI-836845 BI IGF-1 Solid tumors, Japanese patients
EGFR mutant NSCLC
Breast cancer
CRPC + enzalutamide
Various solid cancer
Advanced solid tumors
PF-05082566 Pfizer 4-1BB Solid Tumors, NHL (+rituximab)
Solid tumors, combination with
PD-1 inhibitor MK-3475
Partnered Clinical Pipeline (II)
© MorphoSys - April 2015 12
Bimagrumab (BYM338)
A Novartis Musculoskeletal Program
© MorphoSys - April 2015
DRUG HuCAL antibody against ActRIIB
FDA breakthrough therapy designation for
sporadic inclusion body myositis (sIBM)
Orphan drug designation in sIBM
CLINICAL
DATA
Potential novel treatment of sIBM
Phase 2 results in sIBM[1]:
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
Listed by Novartis as “planned filing 2016”
Phase 2 read-outs in hip fracture surgery,
sarcopenia expected in 2016
13
sIBM patient who has typical prominent
weakness and atrophy of quadriceps and
finger flexors[2]
[1] A Amato et al; Neurology; Nov 7, 2014, online
[2] WK Engel and V Askanas; Neurology 2006; 20-29
Guselkumab (CNTO1959)
A Janssen Anti-Inflammatory Program
© MorphoSys - April 2015 14
Results from phase 2b study: 293 patients with mild-to-moderate plaque psoriasis
@week 16 Placebo 5 mg 50 mg 200 mg 15 mg 100 mg Humira
at week 0, 4, then every 12 weeks every 8 weeks
PGA 0 or 1 7% 34% 79% 83% 61% 86% 58%
PASI 75 5% 44% 81% 81% 76% 79% 70%
PASI 90 2% 34% 45% 57% 34% 62% 44%
DRUG HuCAL antibody specific for IL-23, doesn’t bind IL-12
Specificity may provide better risk/benefit profile
Dosing schedule sc q8w or even less frequently
Being developed in psoriasis and psoriatic arthritis
CLINICAL
DATA
Phase 2b results in psoriasis at week 16
Up to 86% of patients achieved a Physician's
Global Assessment (PGA) score of cleared or minimal
disease at week 16 (primary endpoint)
Significantly higher levels of efficacy at all doses
compared to placebo group
NEXT Three Phase 3 trials scheduled for completion in 2016
“Planned filings 2013–2017” (J&J analyst day 2013)
Clinical response to a single dose of
10 mg of guselkumab administered
at baseline[1]
[1] H Sofen et al; J Allergy Clin Immunol 2014;
133: 1032-40
Gantenerumab
A Roche Alzheimer’s Disease Program
© MorphoSys - April 2015
Data: Courtesy of Roche
15
DRUG HuCAL antibody against amyloid-ß, binds N-
terminus and middle of peptide
Binds/disrupts amyloid plaque and oligomers;
binds peptide only weakly
CLINICAL
DATA
In phase 1, gantenerumab clears brain amyloid
very efficiently in mild-to-moderate AD patients
Phase 3 SCarlet RoAD trial in prodromal patients
discontinued based on pre-planned futility
analysis
Phase 3 Marguerite RoAD trial with 1,000
patients with mild AD ongoing
DIAN network trial in genetically pre-disposed
patients ongoing
NEXT Data from the SCarlet RoAD study will be shared
by Roche with the medical community after full
review and analysis
Data from Phase 1
Effect of gantenerumab on amyloid load
as indexed by PET SUVR at end of
treatment
% A
mylo
id c
hange
from
base
line
Shareholdings
© MorphoSys - April 2015 16
Institutional Investors - 74%
Retail Investors - 16%
Novartis - 4%
Celgene - 3%
Treasury Stock - 1%
Management & Supervisory Board - 2%
Stock Information
Prime Standard, TecDAX
FSE: MOR (ISIN: DE0006632003)
OTC: MPSYY
Ticker:
Bloomberg: MOR:GR
Reuters: MORG.DE
Thomson ONE: MOR-XE
Shares issued: 26,462,834 (March 31, 2015)
Shareholdings by Investor Type (Dec. 2014)
Financial Guidance 2015
© MorphoSys - April 2015
in € million 2014A Guidance 2015
Group Revenues 64.0 101 to 106
Proprietary R&D Expenses
(incl. Technology Development)36.4 56 to 63
EBIT -5.9 9 to 16
Cash, cash equivalents & marketable securities
as well as other short-term and long-term financial assets352.8
17
What to Expect in 2015/2016
© MorphoSys - April 2015 18
MOR208
Updated phase 2 mono-therapy data at ASCO 2015
Start of combination trials in H2 2015
MOR202
Clinical data from phase 1/2a trial at ASCO 2015
Start of combination cohorts (lenalidomide and pomalidomide) mid 2015
MOR209
Start of phase 1 trial
Potential in-licensing of additional compound(s)
Deals for access to targets and/or technologies
Readouts from 2 pivotal studies (bimagrumab & guselkumab)
Clinical readouts for additional 8 partnered programs expected
Up to 10 new INDs
PH
ASE
2PH
ASE 3
PH
ASE 1
Clinical Trials Scheduled for Completion
© MorphoSys - April 2015
20162015
Potential data events based on clinical trial design & MorphoSys estimates Partnered Programs
MOR Programs
19
LJM716
ESCC, combo w/BYL719
VAY736
RRMS
MOR208
NHL (mono - update)
Guselkumab
Psoriasis (VOYAGE 2)
Guselkumab
Psoriasis (VOYAGE 1)
Bimagrumab
sIBM
Guselkumab
Psoriasis (NAVIGATE)
Bimagrumab
Hip fracture surgery
MOR202
Multiple myeloma
MOR208
ALL (mono)
MOR208 - IST
CLL (combo with len)
Bimagrumab
Sarcopenia
LJM716
HER2+ cancer (combo)
LJM716
HER2+ cancer (combo)
LJM716
Advanced solid tumors
CNTO6785
Rheumatoid arthritis
CNTO6785
COPD
Tarextumab
Pancreatic 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 tumors
BI-836845
Advanced solid tumors
LFG316
MCP
LFG316
Geographic atrophy
MOR209
Prostate cancer
APPENDIX
© MorphoSys - April 2015 20
Pipeline Programs: Business Structure
© MorphoSys - April 2015
Partner provides target
MorphoSys technology used to develop
optimized antibody lead candidate
Partner responsible for development and
commercialization
MorphoSys receives milestone & royalties
MorphoSys selects program at
target stage (discovery) or
later (in-licensing)
MorphoSys is fully responsible for pre-clinical
and clinical development
Various partnering strategies
Partner Programs MOR Programs
Discovery Market Market
PartneringPartner
Discovery
21
MOR208 Phase 1 Study in R/R CLL
High Single Agent Overall Response Rate
© MorphoSys - April 2015 22
Best Response, n (%) 0.3 - 9 mg/kg
(N=11)
12 mg/kg
(N=16)
Total
(N=27)
Response by IWCLL 2008 criteria (CT scan)
Complete Response 0 0 0
Partial Response 2 (18%) 6 (38%) 8 (30%)
Stable Disease 7 (64%) 10 (62%) 17 (63%)
Progressive Disease 2 (18%) 0 2 (7%)
ORR in 12mg/kg (recommended phase 2 dose): 38% (IWCLL2008)
Responses by NCI96 criteria (physical exam)
Complete Response 0 0 0
Partial Response 6 (55%) 12 (75%) 18 (67%)
Stable Disease 5 (45%) 4 (25%) 9 (33%)
Progressive Disease 0 0 0
MOR208 shows encouraging single-agent efficacy!
Woyach et al. Blood 2014
Novartis Alliance: Landmark Deal
© MorphoSys - April 2015 23
Novartis pays…
Approx. €20m p.a. technology license
including HuCAL internalization fees
Approx. €20m p.a. in research funding
Over €250m milestones (probability adjusted)
Royalties on all resulting drugs
Novartis gets…
Preferred access to HuCAL for use in over
100 discovery programs
Timeline
May 2004: Initial deal, including equity stake
November 2007: Major expansion
November 2017: End, subject to 2-year extension option
Excluded
Most infectious disease targets
Covering Analysts
© MorphoSys - April 2015
Institution Contact
Baader Helvea Dr. Olav Zilian
Bank of America Merrill Lynch Ms. Sarah Potter
Close Brother Seydler Mr. Igor Kim
Commerzbank Mr. Daniel Wendorff
Deutsche Bank Mr. Gunnar Romer
Edison Dr. Mick Cooper
Goldman Sachs Mr. Steve Chesney
Independent Research GmbH Mr. Christoph Schöndube
J.P. Morgan Cazenove Ms. Diana Na
Kempen & Co. Mr. Sachin Soni / Mr. Mark Pospisilik
Landesbank Baden-Württemberg Mr. Timo Kürschner
24
Forthcoming Events & Conferences
© MorphoSys - April 2015 25
April 16, 2015 8th Kempen Life Sciences Conference
New York, USAMay 5, 2015
Q1 2015 ResultsMay 12-14, 2015
Bank of America Merrill Lynch 2015
Health Care Conference
Las Vegas, USA
May 19-20, 2015
BioEquity,
Vienna, Austria
© MorphoSys - April 2015 26
© MorphoSys - April 2015 27
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 [email protected]
Thank You
www.morphosys.com
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