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MorphoSys AG Reports Results for the First Six Months of 2012


August 2, 2012 - Martinsried, Germany And Munich, Germany

MorphoSys AGReports Results for the First Six Months of 2012

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MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) todayannounced itsfinancial results according to International Financial ReportingStandards(IFRS) for the six months ending June 30, 2012. Group revenues were EUR33.0million (H1 2011: EUR 66.6 million), and the Company recorded an EBITof EUR(1.9 million) (H1 2011: EBIT of EUR 21.5 million) and a net loss aftertaxes ofEUR 1.0 million (H1 2011: net profit after taxes of EUR 15.0 million).Revenuesand profits in the first half of 2011 were heavily influenced by aone-offtechnology milestone payment from Novartis in connection with theinstallationof MorphoSys's HuCAL antibody platform at Novartis's premises in Basel.This isthe main reason for the differences to the current year. MorphoSys'sinvestmentin proprietary product and technology development amounted to EUR 12.3millionin the first half of 2012 (H1 2011: EUR 17.1 million). MorphoSys'scash,securities and interest-bearing assignable loans on June 30, 2012amounted toEUR 133.5 million (December 31, 2011: EUR 134.4 million). TheCompany re-confirmed its full year guidance for 2012.


| In EURO million | H1 2012 | H1 2011 |
+-------------------------------+---------+---------+
| | | |
+-------------------------------+---------+---------+
| | | |
| | | |
| Group Revenues | 33.0 | 66.6 |
+-------------------------------+---------+---------+
| hereof success-based payments | 1.9 | 31.2 |
+-------------------------------+---------+---------+
| hereof AbD Serotec | 8.8 | 9.4 |
+-------------------------------+---------+---------+
| Total Operating Expenses | 35.0 | 43.5 |
+-------------------------------+---------+---------+
| EBIT | (1.9) | 21.5 |
+-------------------------------+---------+---------+
| Net (Loss)/Profit | (1.0) | 15.0 |
+-------------------------------+---------+---------+
| EPS, diluted, in EURO | (0.04) | 0.65 |
+-------------------------------+---------+---------+
| | | |
+-------------------------------+---------+---------+

Highlights of the Second Quarter

* MorphoSys reached a major milestone in its collaboration with Roche asthe clinical trial evaluating the HuCAL antibody gantenerumab to treat Alzheimer's disease was expanded to a pivotal phase 2/3 study.

* MorphoSys announced the election of two new Supervisory Board members:Karin Eastham and Marc Cluzel.

* MorphoSys announced two new management appointments: Charlotte Lohmannjoins MorphoSys from Wilex as General Counsel, and Martin Clark joinsMorphoSys from Sandoz Biopharmaceuticals as Head of Central Purchasing &Logistics.

* AbD Serotec launched a panel of new HuCAL anti-drug antibodiessupporting the development of novel antibody therapeutics. The new productcategory targets primarily CROs and pharmaceutical companies.

* MorphoSys and its US-based partner Xencor completed enrollment in aphase 1 clinical trial evaluating the antibody MOR208 in CLL. Study data isexpected in Q4 2012. MorphoSys plans to initiate additional clinical trials for MOR208 in NHL and ALL in 2012.

* MorphoSys presented MOR208 preclinical combination therapy data at this year's ASCO meeting. The data demonstrate synergistic effects with four approved treatment options including rituximab and ofatumumab.

* MorphoSys's partner OncoMed presented clinical phase 1-data on theHuCAL antibody program OMP-59R5 at the ASCO conference. OMP-59R5 wasgenerally safe and well tolerated.

* At the end of the second quarter of 2012, MorphoSys's partnered and proprietary pipeline comprised 73 programs, of which 20 are in clinical development.

"We are optimistic regarding the development of our business performancein thesecond half of the year and thus confirm our financial guidance for2012,"commented Jens Holstein, Chief Financial Officer of MorphoSys AG. "Ourabilityto continue to invest in long-term value drivers and maintainprofitability in2012 sits at the core of our business model."

"The progress with the HuCAL antibody gantenerumab for thetreatment ofAlzheimer's disease is clearly a major event", stated Dr. Simon Moroney,ChiefExecutive Officer of MorphoSys AG. "This is the first HuCAL antibodyprogram toadvance into a potentially pivotal clinical trial and highlights thegrowingimportance of our pipeline to the Company's value proposition. Weanticipatefurther news from the pipeline before year-end including clinical datafromseveral trials, in particular our proprietary programs MOR103 and MOR208."


Financial Review for First Six Months of 2012 According to IFRS

Group revenues for the first six months of 2012 were EUR 33.0 million (H12011:EUR 66.6 million), the difference to the previous year largelyreflecting a one-off payment received in Q1 2011 from Novartis for thesuccessful installation ofthe HuCAL platform at the Novartis Institutes for BioMedical Research inBasel,Switzerland. Revenues in the Partnered Discovery segment comprised EUR21.5million in funded research and licensing fees (H1 2011: EUR 24.9million) andEUR 1.9 million in success-based payments (H1 2011: EUR 31.2million). TheProprietary Development segment recorded funded research revenues of EUR0.8million (H1 2011: EUR 1.2 million). Assuming constant foreign exchangerates atthe average rate of H1 2011, total revenues in the PartneredDiscovery andProprietary Development segments would have remained unchanged at EUR24.2million. The AbD Serotec segment provided 27% or EUR 8.8 million oftotalrevenues (H1 2011: EUR 9.4 million), a decrease of 6 %. Assumingconstantforeign exchange rates at the average rate of H1 2011, revenues inthe AbDSerotec segment would have amounted to EUR 8.4 million.

Total operating expenses for the first six months of 2012 decreased by 20% toEUR 35.0 million (H1 2011: EUR 43.5 million). The decrease of EUR 8.5millionwas mainly caused by reduced proprietary research and development (R&D)expensesin line with the Company's plans. Cost of goods sold (COGS), a lineitemspecific to AbD Serotec, decreased by 14 % to EUR 3.2 million (H1 2011: EUR3.7million). Total research and development expenses for the Group decreasedby EUR7.0 million to EUR 21.2 million (H1 2011: EUR 28.2 million). The decreasein R&Dexpenses mainly resulted from a lower level of investment in proprietaryproductand technology development amounting to EUR 12.3 million (H1 2011: EUR17.1million). Sales, general and administrative expenses decreased by 8 %to EUR10.6 million (H1 2011: EUR 11.5 million). Non-cash chargesrelated to stock-based compensation are embedded in COGS, S,G&A and R&Dexpenses and amounted toEUR 0.6 million (H1 2011: EUR 0.9 million).

For the first six months of 2012, MorphoSys recorded earnings beforeinterestand taxes (EBIT) of EUR (1.9 million) (H1 2011: EBIT of EUR 21.5million).Partnered Discovery showed a segment EBIT of EUR 12.6 million (H1 2011:EBIT ofEUR 44.2 million) while the continued investment in proprietarydevelopment ledto segment EBIT of EUR (9.6 million) (H1 2011: EBIT of EUR (14.9 million).TheAbD Serotec segment recorded a gross profit margin of 63 %, in comparisonto 60% in the first six months of 2011. The EBIT for AbD Serotec amounted to EUR(0.5million) (H1 2011: EBIT of EUR 0.1 million).

For the first six months of 2012, MorphoSys recorded a net loss aftertaxes ofEUR 1.0 million compared to a net profit of EUR 15.0 million in the sameperiodof the previous year, the difference again being predominantly dueto the one-off payment received in Q1, 2011. The resulting diluted netloss per share forthe first six months of 2012 was EUR 0.04 (H1 2011: diluted net profitof EUR0.65).

On June 30, 2012, the Company had EUR 123.5 million in cash, cashequivalents,and marketable securities compared to EUR 134.4 million as ofDecember31, 2011. Net cash outflow from operations in H1 2012 amounted to EUR1.2million (H1 2011: net cash inflow EUR 32.4 million). The number of issuedsharesat June 30, 2012 was 23,252,972, compared to 23,112,167 shares atDecember31, 2011.


Financial Review of the Second Quarter of 2012 (IFRS)

In the second quarter of 2012, revenues were EUR 16.9 million, comparedto EUR18.0 million in the same quarter of 2011. Significantly reduced expensesled toan improved result, with earnings before interest and taxes of EUR(1.1million), compared to an EBIT of EUR (6.1 million) in the same period of2011. Anet loss of EUR 0.4 million was achieved in the second quarter of 2012,comparedto a net loss of EUR 3.8 million during the same period in 2011.


Outlook for 2012

MorphoSys re-confirmed its guidance for 2012. The Company anticipatestotalGroup revenues of EUR 75-80 million and anticipates an EBIT in the rangeof EUR1-5 million. This guidance does not, at this stage, include a successfulout-licensing of any of the Company's proprietary development programs.Investmentin proprietary research and development in 2012 will be approximately EUR20-25million. Looking forward, MorphoSys anticipates progress across itsproductpipeline including first proof-of-concept data from its leadproprietarycompound MOR103 in Q3 2012.


MorphoSys will hold a public conference call and webcast today at 02:00p.m.CEST (08:00 a.m. EST, 01:00 p.m. BST) to present the Second QuarterResults2012 and report on current developments.

Dial-in number for the Conference Call (listen-only):Germany: +49 89 2444 32975For U.K. residents: +44 20 3003 2666For U.S. residents: +1 202 204 1514

Please dial in 10 minutes before the beginning of the conference.

In addition, MorphoSys offers participants the opportunity tofollow thepresentation through a simultaneous slide presentation onlineathttp://www.morphosys.com.

A live webcast, slides, webcast replay and transcript will be madeavailable at http://www.morphosys.com.

Approximately two hours after the press conference, a slide-synchronizedaudioreplay of the conference will be available on http://www.morphosys.com.


The complete 2nd Interim Report 2012 (January - June) is available on ourwebsite (HTML and PDF): http://www.morphosys.com/FinancialReports


About MorphoSys:

MorphoSys developed HuCAL, the most successful antibody library technologyinthe pharmaceutical industry. By successfully applying this and otherpatentedtechnologies, MorphoSys has become a leader in the field of therapeuticantibodies, one of the fastest-growing drug classes in human healthcare.Thecompany's AbD Serotec unit uses HuCAL and other antibody technologies togenerate superior monoclonal antibodies for research and diagnosticapplications.

Together with its pharmaceutical partners, MorphoSys has built atherapeuticpipeline of more than 70 human antibody drug candidates for the treatmentofcancer, rheumatoid arthritis, and Alzheimer's disease, to name just a few.Withits ongoing commitment to new antibody technology and drug development,MorphoSys is focused on making the healthcare products of tomorrow.MorphoSys islisted on the Frankfurt Stock Exchange under the symbol MOR. For regularupdatesabout MorphoSys, visit http://www.morphosys.com

HuCAL®, HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay®,RapMAT®, arYla®and Ylanthia® and 100 billion high potentials® are registeredtrademarks ofMorphoSys AG

Slonomics® is a registered trademark of Sloning BioTechnologyGmbH, asubsidiary of MorphoSys AG.

This communication contains certain forward-looking statementsconcerning theMorphoSys group of companies. The forward-looking statements containedhereinrepresent the judgment of MorphoSys as of the date of this release andinvolverisks and uncertainties. Should actual conditions differ from theCompany'sassumptions, actual results and actions may differ from thoseanticipated.MorphoSys does not intend to update any of these forward-lookingstatements asfar as the wording of the relevant press release is concerned.


H1 2012 Media Release (PDF):http://hugin.info/130295/R/1631157/522870.pdf

2nd Interim Report 2012 (PDF):http://hugin.info/130295/R/1631157/522881.pdf


This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: MorphoSys AG via Thomson Reuters ONE

[HUG#1631157]

For more information, please contact:

MorphoSys AG
Dr. Claudia Gutjahr-Loser
Head of Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-122

Mario Brkulj
Senior Manager Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-454

Jessica Kulpi
Specialist Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-332

Email Contact

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