MorphoSys AG : MorphoSys AG Reports Results for the First Quarter of 2013

  MorphoSys AG : MorphoSys AG Reports Results for the First Quarter of 2013

MorphoSys AG / MorphoSys AG Reports Results for the First Quarter of 2013 .
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First Quarter Positively Impacted by Sale of AbD Serotec

Conference call and webcast (in English) today at 2:00pm CET (1:00pm
GMT/8:00am EST)

MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) today announced its
financial results for the three months ending 31 March 2013. Group revenues
from continuing operations increased by 44 % to EUR 16.9 million compared to
the same period of the previous year. The reason for the increase was a fully
paid-up license payment from Bio-Rad for a non-exclusive license for HuCAL in
research and diagnostic applications in connection with the sale of the
Company's AbD Serotec segment to Bio-Rad. Earnings before interest and taxes
(EBIT) from continued operations amounted to EUR 2.5 million (Q1 2012:
EUR-0.7 million). On 31 March 2013, MorphoSys's cash, securities and
interest-bearing assignable loans amounted to EUR 177.4 million (31 December
2012: EUR 135.7 million).

In EUR million*                           Q1 2013 Q1 2012
Continuing Operations:
Group Revenues                            16.9    11.7
Total Operating Expenses                  14.6    12.5
Other Income/Expenses                     0.2     0.1
Earnings Before Interest and Taxes (EBIT) 2.5     (0.7)
Profit/Loss from Continuing Operations    1.9     (0.3)
Profit/Loss from Discontinued Operations  6.0     (0.2)
Consolidated Net Profit                   7.9     (0.5)
Total EPS (diluted) in EURO               0.33    (0.02)

* Differences due to rounding

Highlights of the First Quarter

  *MorphoSys completes sale of AbD Serotec to Bio-Rad. With the divestment of
    AbD Serotec completed, MorphoSys can devote 100% of its attention to
    building value in its core therapeutics business.
  *MorphoSys and Heptares sign alliance to develop antibody therapeutics
    targeting G protein-coupled receptors (GPCRs). The collaboration opens up
    new target space for therapeutic antibodies from the MorphoSys Ylanthia
    platform.
  *MorphoSys receives first patent on novel antibody platform Ylanthia in the
    US.
  *MorphoSys achieves first clinical milestone in a partnered program in 2013
    as Novartis completes clinical trial application for a phase 1 study using
    a HuCAL antibody in ophthalmology.
  *At the end of the first quarter of 2013, the MorphoSys partnered and
    proprietary pipeline comprises 21 clinical programs.
  *Shortly after the end of the first quarter, MorphoSys initiates a share
    buy-back program, and plans to acquire up to 85,000 shares. The Company
    intends to use the shares primarily for its long-term incentive programs
    for its management.

"We expect 2013 to be a very exciting year for MorphoSys with our pipeline
being once again the main newsflow and value driver," stated Dr. Simon
Moroney, Chief Executive Officer of MorphoSys AG. "With the sale of AbD
Serotec successfully completed, we can now focus on advancing our proprietary
and partnered development pipeline."

"The Q1 2013 results again highlight the attractive terms we were able to
secure in the AbD Serotec divestment. With the sale of AbD Serotec we
strengthened our financial resources, allowing us to increase our investments
in proprietary research and development," commented Jens Holstein, Chief
Financial Officer of MorphoSys AG.

Financial Review for the First Quarter of 2013 (IFRS)
On 10 January 2013, MorphoSys completed the sale of its research and
diagnostic antibody segment AbD Serotec to Bio-Rad Laboratories, Inc. As a
consequence, substantially all of the AbD Serotec segment was classified as
discontinued operations. The operating segments Partnered Discovery and
Proprietary Development as well as the part of AbD Serotec which remained with
MorphoSys are presented as continuing operations.

Results from Continuing Operations
Group revenues from continuing operations for the first quarter of 2013
amounted to EUR 16.9 million (Q1 2012: EUR 11.7 million), an increase of 44 %
over the prior year. The strong increase resulted predominantly from a license
payment from Bio-Rad for a non-exclusive license for HuCAL in research and
diagnostic applications in connection with their purchase of MorphoSys's
research and diagnostic segment AbD Serotec. Revenues in the Partnered
Discovery segment comprised EUR 16.5 million in funded research and licensing
fees (Q1 2012: EUR 10.7 million) and EUR 0.4 million in success-based payments
(Q1 2012: EUR 0.4 million). The Proprietary Development segment did not record
revenues, as a result of the waiver of the existing co-development options
with Novartis (Q1 2012: EUR 0.5 million).

Total operating expenses from continuing operations for the first quarter of
2013 increased by 17 % to EUR 14.6 million (Q1 2012: EUR 12.5 million). Total
research and development expenses increased by 11 % to EUR 11.0 million (Q1
2012: EUR 9.9 million). The increase in R&D expenses mainly resulted from
higher personnel and material costs. Investment in proprietary product and
technology development amounted to EUR 7.0 million (Q1 2012: EUR 6.4 million).
Sales, general and administrative expenses increased by 44 % to EUR 3.6
million (Q1 2012: EUR 2.5 million) driven by higher expenses for personnel and
for external services. Non-cash charges related to share-based payments are
embedded in S,G&A and R&D expenses and amounted to EUR 1.1 million (Q1 2012:
EUR 0.3 million).

Earnings before interest and taxes (EBIT) from continuing operations amounted
to EUR 2.5 million (Q1 2012: EUR -0.7 million). Partnered Discovery showed a
segment EBIT of EUR 10.9 million (Q1 2012: EUR 6.2 million), while the
Proprietary Development segment reported a segment EBIT of EUR -5.5 million
(Q1 2012: EUR -5.1 million) due to investments in proprietary development.

For the first quarter of 2013, MorphoSys realized a net profit from continuing
operations of EUR 1.9 million compared to a net loss of EUR 0.3 million in the
same period of the previous year. The resulting diluted earnings per share
from continuing operations for the first three months of 2013 amounted to EUR
0.08 (Q1 2012: EUR -0.01).

Results from the AbD Serotec segment (discontinued operations)
The sale of the research and diagnostic antibody segment AbD Serotec to
Bio-Rad Laboratories, Inc. was completed on 10 January 2013. Results under
discontinued operations reflect only the first 10 days of the quarter. Sales
from discontinued operations decreased to EUR 0.6 million (Q1 2012: EUR 4.5
million). The revenues from discontinued operations are not included in the
Group revenues from continuing operations.

Total operating costs for discontinued operations amounted to EUR 2.3 million
(Q1 2012: EUR 4.6 million), including cost of goods sold (COGS) in the amount
of EUR 0.1 million (Q1 2012: EUR 1.7 million) as well as transaction-related
costs in the amount of EUR 1.8 million (Q1 2012: 0.02 million).

During the first three months of 2013, EBIT of discontinued operations after
deduction of all attributable transaction costs amounted to EUR -1.7 million
(Q1 2012: EUR -0.1 million). In connection with the deconsolidation, a
disposal gain of EUR 8.0 million was accounted for, resulting in a profit
before taxes of EUR 6.3 million (Q1 2012: EUR-0.1 million). The net profit of
the discontinued operations amounted to EUR 6.0 million (Q1 2012: EUR -0.2
million).

Results for the Group
Group net profit amounted to EUR 7.9 million (Q1 2012: EUR -0.5 million). The
resulting diluted Group earnings per share amounted to EUR 0.33 (Q1 2012: EUR
-0.02).

On 31 March 2013, the Company had EUR 177.4 million in cash, cash equivalents
and marketable securities, including an interest-bearing assignable loan in
the amount of EUR 15.0 million, compared to EUR 135.7 million as of 31
December 2012. Net cash inflow from operations in Q1 2013 amounted to EUR 5.8
million (Q1 2012: EUR 2.3 million). The number of issued shares at 31 March
2013 was 23,358,228, unchanged from 31 December 2012.

Outlook for 2013
MorphoSys re-confirmed its guidance for 2013. Without taking into account a
successful out-licensing of one of its proprietary compounds, MorphoSys
anticipates total Group revenues of EUR 48 million to EUR 52 million and
anticipates an EBIT in the range of EUR -18 to EUR-22 million in 2013. Total
operating expenses will amount to EUR 70 million to EUR 74 million, of which
EUR 32 million to EUR 37 million represent investments in proprietary products
and technologies. Additional income from an out-licensing deal in 2013, which
is not included in the current guidance, could lead to out-performance of the
guidance.

MorphoSys will hold a public conference call and webcast today at 02:00 p.m.
CEST (08:00 a.m. EST, 01:00 p.m. BST) to present the First Quarter Results
2013 and report on current developments.

Dial-in number for the analyst conference call (in English) at 02:00 pm CET;
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 to follow the
presentation through a simultaneous slide presentation online at
http://www.morphosys.com.
A live webcast, slides, webcast replay and transcript will be made available
at http://www.morphosys.com.
Approximately two hours after the press conference, a slide-synchronized audio
replay of the conference will be available on http://www.morphosys.com.

The complete 1st Interim Report 2013 (January - March) is available on our
website (HTML and PDF): http://www.morphosys.com/FinancialReports

About MorphoSys:
MorphoSys developed HuCAL, the most successful antibody library technology in
the pharmaceutical industry. By successfully applying this and other patented
technologies, MorphoSys has become a leader in the field of therapeutic
antibodies, one of the fastest-growing drug classes in human healthcare.
Together with its pharmaceutical partners, MorphoSys has built a therapeutic
pipeline of more than 70 human antibody drug candidates for the treatment of
cancer, rheumatoid arthritis, and Alzheimer's disease, to name just a few.
With its ongoing commitment to new antibody technology and drug development,
MorphoSys is focused on making the healthcare products of tomorrow. MorphoSys
is listed on the Frankfurt Stock Exchange under the symbol MOR. For regular
updates about MorphoSys, visit http://www.morphosys.com.

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.

This communication contains certain forward-looking statements concerning the
MorphoSys group of companies. The forward-looking statements contained herein
represent the judgment of MorphoSys as of the date of this release and involve
risks and uncertainties. Should actual conditions differ from the Company's
assumptions, actual results and actions may differ from those anticipated.
MorphoSys does not intend to update any of these forward-looking statements as
far as the wording of the relevant press release is concerned.

For more information, please contact:
MorphoSys AG
Dr. Claudia Gutjahr-Löser
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

investors@morphosys.com

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MorphoSys AG
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