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MorphoSys AG Reports Results for Fiscal Year 2012


March 5, 2013 - Munchen, Germany

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The issuer is solely responsible for the content of this announcement.

Therapeutic Antibody Pipeline Progress and Novel Technologies Are Key ValueDrivers

Conference call and webcast (in English) today at 2:00pm CET (1:00pmGMT/8:00amEST)

MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) todayannouncedfinancial results for the year ending December 31, 2012. Due to the saleof theAbD Serotec segment to Bio-Rad, which was completed on January 10,2013,revenues and costs arising from this segment are classified asdiscontinuedoperations. Group revenues from continuing operations amounted to EUR51.9million and earnings before interest and taxes to EUR 2.5 million. Totalgrouprevenues including AbD Serotec would have summed to EUR 69.6million, therespective EBIT to EUR 1.9 million. Profit for the year fromcontinuingoperations amounted to EUR 2.4 million, the consolidated net profitincludingAbD Serotec to EUR 1.9 million.

The year was marked by strong progress in the Company's pipeline ofproprietaryand partnered therapeutic antibody candidates, including MOR103 andMOR208,gantenerumab, CNTO1959 and BYM338. With the commercial launch of theYlanthiaantibody library, MorphoSys enhanced its position as an originator of themostadvanced platforms for the development of therapeutic antibodies. Byselling theresearch and diagnostic business unit AbD Serotec to Bio-Rad, MorphoSysfurtherincreased its focus on its therapeutic business segments andsignificantlystrengthened its cash position.

Operational Highlights of 2012:

* Excellent safety and efficacy results in MOR103 rheumatoid arthritisphase 1b/2a study

* Promising phase 1 data for MOR208 in CLL

* Major milestone reached in collaboration with Roche as the clinicaltrial evaluating the HuCAL antibody gantenerumab to treat Alzheimer's diseasewas expanded to a pivotal phase 2/3 study

* Further maturation of one of the industry's broadest antibodypipelines: at year-end, MorphoSys's partnered and proprietary pipeline comprised 76 programs, of which 20 are in clinical development

* Divestment of research and diagnostic business unit AbD Serotec toBio-Rad for a total consideration of approximately EUR 53 million

* Technology alliance with Lanthio Pharma for the development of lantipeptides, underpinned by equity investment - Launch of MorphoSys's "Innovation Capital" initiative

* Commercial launch of Ylanthia with expansion of Novartis collaboration

"The year 2012 was one of the most successful in the history ofMorphoSys andour antibody pipeline and financial position have never been stronger,"statedDr. Simon Moroney, Chief Executive Officer of MorphoSys AG. "Majoradvances inour proprietary programs were the decisive events of the year. Thepositivereaction of the market illustrates the importance of these programsfor theCompany's value proposition. We are also excited about the significantprogresswith our partnered programs, which include numerous antibodiesagainstattractive therapeutic targets. We are focused on advancing ourproprietary andpartnered antibody candidates and leveraging our technologies incollaborationsto further advance our development pipeline. We will invest, asnecessary, togenerate the maximum possible value from our portfolio of drug candidates."

Financial Overview 2012

Due to the sale of the AbD Serotec segment to Bio-Rad, which wascompleted onJanuary 10, 2013, revenues and costs arising from the AbD Serotecsegment areclassified as discontinued operations. Group revenues from continuingoperationsdecreased by 37 % to EUR 51.9 million (2011: EUR 82.1 million) andearningsbefore interest and taxes decreased to EUR 2.5 million (2011: EUR 9.8million).Total group revenues including AbD Serotec would have amounted to EUR69.6million (2011: EUR 100.8 million), the respective EBIT to EUR 1.9 million(2011:EUR 10.1 million). The difference to the previous year largely reflects aone-off payment received in Q1 2011 from Novartis for the successfulinstallation ofthe HuCAL platform at the Novartis Institutes for BioMedical Research inBasel.The consolidated net profit including AbD Serotec amounted to EUR 1.9million(2011: EUR 8.2 million). MorphoSys's cash, securities andinterest-bearing assignable loans on December 31, 2012 amounted to EUR135.7 million, includingcash reserves of the AbD Serotec segment in the amount of EUR 5.3million(December 31, 2011: EUR 134.4 million). This does not reflect theeffects nordoes it include the proceeds of the AbD Serotec transaction, which wasclosed onJanuary 10, 2013. As a result, MorphoSys's cash, securities andinterest-bearing assignable loans increased to EUR 180.8 million as ofJanuary 31, 2013.


|In EUR million |2012 |2011 |Q4 2012|Q4 2011|
+-----------------------------------------+-----+-----+-------+-------+
| | | | | |
+-----------------------------------------+-----+-----+-------+-------+
| | | | | |
|Continuing Operations: | | | | |
+-----------------------------------------+-----+-----+-------+-------+
|Group Revenues |51.9 |82.1 |16.5 |12.3 |
+-----------------------------------------+-----+-----+-------+-------+
|Total Operating Expenses |49.8 |70.8 |12.2 |20.4 |
+-----------------------------------------+-----+-----+-------+-------+
|Other Income/Expenses |0.3 |(1.5)|0.1 |0.1 |
+-----------------------------------------+-----+-----+-------+-------+
|Earnings Before Interest and Taxes (EBIT)|2.5 |9.8 |4.4 |(8.0) |
+-----------------------------------------+-----+-----+-------+-------+
|Profit/Loss from Discontinued Operations |(0.4)|0.01 |(0.1) |0.0 |
+-----------------------------------------+-----+-----+-------+-------+
|Consolidated Net Profit |1.9 |8.2 |3.2 |(4.8) |
+-----------------------------------------+-----+-----+-------+-------+
|Total EPS (diluted) in EURO |0.08 |0.36 |- |- |
+-----------------------------------------+-----+-----+-------+-------+

"Financial stability based on our strong cash position togetherwith aprofitable and cash-generating partner business, continues to be oneof thegreatest strengths of our company. Financial discipline will remain a keyfactoras we strive to maximize the value of our proprietary portfolio ofantibodycandidates. We are seeking to out-license MOR103 in 2013 and we willalsoconsider further transactions such as in-licensing deals to access newdrugcandidates and technologies as well as equity participation incompanies,"commented Jens Holstein, Chief Financial Officer of MorphoSys AG.


Financial Review for the Fiscal Year 2012 (IFRS)

Results from Continuing Operations

Group revenues from continuing operations for the full year 2012amounted toEUR 51.9 million (2011: EUR 82.1 million), a decrease of 37 % over theprioryear. The decrease resulted predominantly from a one-time technologymilestonepayment from Novartis in 2011. Revenues in the Partnered Discoverysegmentcomprised EUR 44.7 million in funded research and licensing fees(2011:EUR 79.3 million) and EUR 1.9 million in success-based payments(2011:EUR 32.7 million). The Proprietary Development segment recorded fundedresearchrevenues of EUR 7.0 million (2011: EUR 2.4 million). Assuming constantforeignexchange rates at the average rate of 2011, revenues in the PartneredDiscoveryand Proprietary Development segments would have amounted to EUR 51.3million.

Total operating expenses from continuing operations for the full year2012decreased by 30 % to EUR 49.8 million (2011: EUR 70.8 million). Thereduction inoperating expenses of EUR 21.0 million was mainly caused bydecreasedproprietary research and development (R&D) expenses and lower S, G&Acosts.Total research and development expenses fell by EUR 18.2 million or 33% toEUR 37.7 million in 2012 (2011: EUR 55.9 million). The decrease in R&Dexpensesmainly resulted from a lower level of investment in proprietaryproduct andtechnology development amounting to EUR 21.7 million (2011: EUR 36.8million).Sales, general and administrative expenses fell by 19 % to EUR 12.1million(2011: EUR 14.9 million). Non-cash charges related to stock-basedcompensationare embedded in COGS, S,G&A and R&D expenses and amounted to EUR 1.3million(2011: EUR 1.5 million).

Earnings before interest and taxes (EBIT) from continuing operationsamounted toEUR 2.5 million (2011: EUR 9.8 million). Partnered Discovery showed asegmentEBIT of EUR 23.0 million (2011: EUR 55.7 million), while theProprietaryDiscovery segment reported a segment EBIT of EUR -11.0 million (2011:EUR -32.2 million) due to investments in proprietary development.

Other income and expenses, including taxes, resulted in an income ofEUR 0.2million (2011: expense of EUR 3.1 million). For the full year 2012,MorphoSysrealized a net profit from continuing operations of EUR 2.4 millioncompared toa net profit of EUR 8.2 million in the previous year. The resultingdilutedearnings per share from continuing operations for the year 2012amounted toEUR 0.10 (2011: EUR 0.35).


Results from the AbD Serotec segment

Sales from the AbD Serotec segment amounted to EUR 18.0 million(2011:EUR 19.3 million). Assuming constant foreign exchange rates at the averagerateof 2011, segment revenues in AbD Serotec would haveamounted toEUR 17.0 million. EUR 17.7 million of the segment revenues are notincluded inthe Group revenues from continuing operations and are presented as revenuesfromdiscontinuing operations.

Total operating costs for the AbD segment decreased by 4 % to EUR 17.6million(2011: EUR 18.4 million), including cost of goods sold (COGS) in theamount ofEUR 6.2 million (2011: EUR 7.0 million).

Earnings before interest and taxes (EBIT) from the AbD Serotec segmentamountedto EUR 0.3 million (2011: EUR 0.9 million).


Results for the Group:

Group net profit amounted to EUR 1.9 million (2011: EUR 8.2million). Theresulting Group earnings per share amounted to EUR 0.08 (2011: EUR 0.36).

On December 31, 2012, the Company had EUR 135.7 million in cash,cashequivalents and marketable securities, including an interest-bearingassignableloan in the amount of EUR 10.0 million and including cash reserves ofthe AbDSerotec segment in the amount of EUR 5.3 million, compared to EUR 134.4millionas of December 31, 2011. Net cash inflow from operations in 2012amounted toEUR 1.8 million (2011: EUR 27.1 million). The number of issuedshares atDecember 31, 2012 was 23,358,228, compared to 23,112,167 shares atDecember31, 2011.


Fourth Quarter of 2012 (IFRS)

Results from Continuing Operations

In the fourth quarter of 2012, the Company generated revenues fromcontinuingoperations in the amount of EUR 16.5 million, compared to EUR 12.3million inthe same quarter of 2011. Total operating expenses amounted to EUR 12.2millionin Q4, compared to EUR 20.4 million in the same quarter of 2011. Thedecrease ofoperating expenses was mainly due to decreased personnel expenses andcosts forexternal services. The EBIT amounted to EUR 4.4 million (Q4 2011:EUR -8.0 million). Net profit for the fourth quarter 2012 was EUR 3.2million,compared to a net loss of EUR 4.8 million in the fourth quarter of 2011.

Results from Discontinued Operations (AbD Serotec)

The discontinued operations generated revenues of EUR 4.2 million in thefourthquarter of 2012, compared to EUR 4.8 million in the same quarter of 2011.Totaloperating expenses amounted to EUR 4.4 million in Q4, compared toEUR 4.6million in the same quarter of 2011. The decrease of operatingexpenses wasmainly due to decreased costs of goods sold. The resulting EBITamounted toEUR -0.2 million (Q4 2011: EBIT of EUR 0.2 million). Net loss for thefourthquarter 2012 was EUR 0.1 million, compared to a slight net profit for thefourthquarter of 2011.


Outlook for 2013

MorphoSys's main goals for 2013 are the expansion and progress ofitstherapeutic antibody pipeline and the further development andexploitation ofits technology platforms. Without taking into account a successfulout-licensing of one of its proprietary compounds, MorphoSys anticipatestotal Group revenuesof EUR 48 million to EUR 52 million and anticipates an EBIT in therange ofEUR -18 to EUR -22 million in 2013. Total operating expenses will amountto EUR70 million to EUR 74 million, of which EUR 32 million to EUR 37millionrepresent investments in proprietary products and technologies. From thesale ofthe AbD Serotec segment, MorphoSys expects an extraordinary income ofEUR 4million to EUR 6 million. Additional income from an out-licensing deal in2013,which is not included in the current guidance, could lead to anout-performance of the guidance.


MorphoSys will hold its conference call and webcast today to present theAnnualFinancial Results 2012 and the Outlook 2013.

Dial-in number for the analyst conference call (in English) at 02:00 pmCET;01:00 pm GMT; 08:00 am EST (listen-only):

Germany: +49 (0) 89 2444 32975

For UK residents: +44 (0) 20 3003 2666

For US 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 athttp://www.morphosys.com.

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

Consolidated Financial Statements 2012 (IFRS) are available on our website: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.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®,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.


Consolidated Financial Statements (IFRS) 2012:http://hugin.info/130295/R/1682840/550611.pdf

Media Release (PDF):http://hugin.info/130295/R/1682840/550610.pdf


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

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

Source: MorphoSys AG via Thomson Reuters ONE

[HUG#1682840]

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
Associate Director Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-454

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

Email Contact

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