MorphoSys AG Reports Results for the First Nine Months of 2013

MorphoSys AG Reports Results for the First Nine Months of 2013

MARTINSRIED / MUNICH, Germany, Nov. 7, 2013 (GLOBE NEWSWIRE) --

Results Strongly Impacted by MOR202 Co-Development Agreement with Celgene

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; OTC: MPSYY) today
announced its financial results for the nine months ending 30 September 2013.
Group revenues from continuing operations increased by 80 % to EUR 63.6 million
(9-months 2012: EUR 35.4 million). The increase was a result of the license
agreement with GlaxoSmithKline (GSK) for MorphoSys's clinical antibody program
MOR103, the co-development agreement with Celgene for the further development of
MOR202 as well as a fully paid-up license payment from Bio-Rad for a non-
exclusive license to use HuCAL in research and diagnostic applications in
connection with its acquisition of the Company's AbD Serotec segment. Earnings
before interest and taxes (EBIT) from continuing operations amounted to EUR
14.6 million (9-months 2012: EUR -1.9 million). The net profit including the
profit from discontinued operations amounted to EUR 16.9 million. On 30
September 2013, the Company had EUR 401.9 million in cash, cash equivalents,
marketable securities and bonds as well as other financial assets, compared to
EUR 135.7 million as of 31 December 2012. The increase compared to year-end
2012 resulted from the license agreements with GSK and Celgene, the sale of the
AbD Serotec segment to Bio-Rad and the capital increase which was successfully
concluded in September 2013.

| In EUR million*                            | 9-Months 2013 | 9-Months 2012 |
+--------------------------------------------+---------------+---------------+
|                                           |              |              |
+--------------------------------------------+---------------+---------------+
|                                           |              |              |
|                                            |               |               |
| Continuing Operations:                     |              |              |
+--------------------------------------------+---------------+---------------+
| Group Revenues                             |          63.6 |          35.4 |
+--------------------------------------------+---------------+---------------+
| Total Operating Expenses                   |          49.1 |          37.6 |
+--------------------------------------------+---------------+---------------+
| Other Income/Expenses                      |           0.2 |           0.3 |
+--------------------------------------------+---------------+---------------+
| Earnings Before Interest and Taxes - EBIT  |          14.6 |         (1.9) |
+--------------------------------------------+---------------+---------------+
| Profit/(Loss) from Continuing Operations   |          10.9 |         (0.9) |
+--------------------------------------------+---------------+---------------+
| Profit/(Loss) from Discontinued Operations |           6.0 |         (0.4) |
+--------------------------------------------+---------------+---------------+
| Consolidated Net Profit/(Loss)             |          16.9 |         (1.2) |
+--------------------------------------------+---------------+---------------+
| Total EPS, diluted, in EURO                |          0.68 |        (0.05) |
+--------------------------------------------+---------------+---------------+
|                                           |              |              |
+--------------------------------------------+---------------+---------------+

* Differences due to rounding

Summary of the Third Quarter 2013

  * On 10 August 2013 the development alliance with Celgene for MOR202, which
    was announced at the end of June 2013, received anti-trust clearance under
    the US Hart-Scott-Rodino Act. On closure of the deal, Celgene acquired
    797,150 new MorphoSys shares at EUR 57.90 per share representing a premium
    of 5.0 % compared to the share'sclosing price on 9 August 2013. At the end
    of Q3 2013, Celgene owned approximately 3 % of MorphoSys's registered share
    capital.
  * As a result of the transactions with GSK for MOR103 in June 2013 and with
    Celgene for MOR202, MorphoSys now expects more revenues in the Proprietary
    Development operating segment than initially estimated. On 24 October 2013,
    MorphoSys raised its EBIT guidance for 2013 and further specified its
    revenue guidance. Revenues are now expected to reach the upper end of the
    guidance range of EUR 74 million to EUR 78 million. The EBIT guidance was
    increased to EUR 7 million to EUR 10 million (from previously EUR 2 million
    to EUR 6 million).
  * The phase 1/2a study of the CD19 antibody MOR208 in the area of chronic
    lymphocytic leukemia (CLL) was completed. The final results of the study
    show that MOR208 was well tolerated with an overall response rate of around
    30 %.
  * By the end of the third quarter of 2013, MorphoSys's product pipeline
    comprised 21 clinical programs, including two in pivotal studies, namely
    bimagrumab (Novartis) and gantenerumab (Roche).
  * MorphoSys executed a capital increase with gross proceeds of around EUR 84
    million. Approximately 1.5 million new shares were issued to international
    institutional investors at EUR 55.76 per share and thus at the closing price
    of the day before the announcement.

"The third quarter brought impressive news from our broad therapeutic antibody
pipeline. We closed our alliance with Celgene for MOR202 and reported positive
headline data from the Phase 1/2a trial of MOR208 in CLL. Amongst the partnered
programs, bimagrumab became the first antibody based on our technology platform
to receive breakthrough therapy designation from the FDA. It's now the second
program in our pipeline to enter a pivotal clinical trial. In addition, three
partnered programs advanced into phase 2 clinical trials. That adds up to a very
productive quarter," stated Dr. Simon Moroney, Chief Executive Officer of
MorphoSys AG.

"The partnership deals with GSK and Celgene were the decisive events that will
lead to a clear out-performance of our original 2013 financial guidance.
MorphoSys is well positioned and well-funded to broaden and advance its
proprietary portfolio in 2014 and to continue to build significant value,"
commented Jens Holstein, Chief Financial Officer of MorphoSys AG.

Financial Review for the First Nine Months 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 nine months of 2013
amounted to EUR 63.6 million (9-months 2012: EUR 35.4 million), an increase of
80 % over the prior year. The strong increase resulted predominantly from
license payments received from Bio-Rad, GSK, and Celgene. The license payment
from Bio-Rad derived from a non-exclusive license to use HuCAL in research and
diagnostic applications in connection with their acquisition of MorphoSys's AbD
Serotec segment. The license agreement with GSK for MOR103, a HuCAL-derived
antibody against GM-CSF, included an upfront payment for MorphoSys which was
almost fully accounted for in 2013. The license agreement with Celgene covers
the joint development of MOR202 as well as the co-promotion of the drug
candidate in Europe and also includes an up-front payment which was recognized
pro rata in 2013. Revenues in the Partnered Discovery segment comprised EUR
37.5 million in funded research and licensing fees (9-months 2012: EUR 32.1
million) and EUR 3.0 million in success-based payments (9-months 2012: EUR 1.9
million). The Proprietary Development segment recorded revenues of EUR 23.0
million (9-months 2012: EUR 1.2 million). The main reason for the increase over
the prior year was the receipt of upfront payments from GSK and Celgene.

Total operating expenses from continuing operations for the first nine months of
2013 increased by 31 % to EUR 49.1 million (9-months 2012: EUR 37.6 million).
Total research and development expenses increased by 24 % to EUR 35.9 million
(9-months 2012: EUR 29.0 million). The increase in R&D expenses mainly resulted
from higher personnel costs as well as costs for external laboratory services.
Investment in proprietary product and technology development amounted to EUR
24.1 million (9-months 2012: EUR 17.2 million). Sales, general and
administrative expenses increased by 53 % to EUR 13.2 million (9-months 2012:
EUR 8.6 million) driven by higher expenses for personnel and for external
services.

Earnings before interest and taxes (EBIT) from continuing operations amounted to
EUR 14.6 million (9-months 2012: EUR -1.9 million). Partnered Discovery showed a
segment EBIT of EUR 22.4 million (9-months 2012: EUR 17.9 million), while the
Proprietary Development segment reported a segment EBIT of EUR 2.4 million (9-
months 2012: EUR -13.1 million).

For the first nine months of 2013, MorphoSys recorded a net profit from
continuing operations of EUR 10.9 million compared to a net loss of EUR 0.9
million in the same period of 2012. The resulting diluted earnings per share
from continuing operations for the nine months ending 30 September 2013 amounted
to EUR 0.45 (9-months 2012: EUR -0.04).

Results from 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 from discontinued
operations reflect only the first ten days of the quarter. Revenues from
discontinued operations were EUR 0.6 million (9-months 2012: EUR 13.5 million).

Total operating costs from discontinued operations amounted to EUR 2.3 million
(9-months 2012: EUR 13.7 million), including cost of goods sold (COGS) in the
amount of EUR 0.2 million (9-months 2012: EUR 4.8 million) as well as
transaction-related costs in the amount of EUR 1.8 million.

During the nine months ending 30 September 2013, EBIT from discontinued
operations after deduction of all attributable transaction costs amounted to EUR
-1.7 million (9-months 2012: EUR -0.4 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 (9-months 2012: a loss of EUR 0.5
million). The net profit from discontinued operations amounted to EUR 6.0
million (9-months 2012: net loss of EUR 0.4 million).

Results for the Group
Group net profit amounted to EUR 16.9 million (9-months 2012: EUR -1.2 million).
The resulting fully diluted Group earnings per share amounted to EUR 0.68 (9-
months 2012: EUR -0.05).

On 30 September 2013, the Company had EUR 401.9 million in cash, cash
equivalents, marketable securities and bonds as well as other financial assets
(reported in the balance sheet under cash and cash equivalents; available for
sale financial assets; bonds, available for sale; and other receivables),
compared to EUR 135.7 million as of 31 December 2012. Net cash inflow from
operations in the first nine months of 2013 amounted to EUR 100.8 million (9-
months 2012: EUR 2.4 million). The number of shares issued at 30 September 2013
was 26,111,009 compared to 23,358,228 on 31 December 2012. The increase of
2,752,781 shares resulted from the capital increase in August related to the
alliance with Celgene, from the capital increase in September and from the
exercise of stock options.

Third Quarter of 2013 (IFRS)

Results from Continuing Operations
In the third quarter of 2013, the Company generated revenues from continuing
operations in the amount of EUR 15.4 million, compared to EUR 11.0 million in
the same quarter of 2012. Total operating expenses amounted to EUR 18.0 million
in Q3, compared to EUR 11.7 million in the same quarter of 2012. The increase of
operating expenses was mainly due to increased personnel expenses and costs for
external services. EBIT amounted to EUR -2.7 million (Q3 2012: EUR -0.6
million). Net loss for the third quarter 2013 was EUR 2.1 million, compared to a
net loss of EUR 0.6 million in the third quarter of 2012.

Results from Discontinued Operations
During the third quarter of 2013, no revenues or expenses occurred within the
AbD Serotec segment, which was sold to Bio-Rad in January of 2013.

Results for the Group
For the third quarter of 2013, Group net loss amounted to EUR 2.1 million (Q3
2012: net loss of EUR 0.2 million). The resulting fully diluted Group earnings
per share amounted to
EUR -0.08 (Q3 2012: EUR -0.01).

Outlook for 2013

MorphoSys updated its guidance for 2013 on 24 October 2013 to reflect and
further specify the impact of the alliance with Celgene for the future
development of MOR202.
The Company's management expects revenues of approximately EUR 74 million to EUR
78 million and an EBIT of EUR 7 million to EUR 10 million. Revenues are expected
to be at the upper end of the given range.



MorphoSys will hold a public conference call and webcast today at 02:00 pm CET
(01:00 pm GMT, 08:00 am EST) to present the Third 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 3nd Interim Report 2013 (January - September) 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 80 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® and 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


Media Release (PDF): http://hugin.info/130295/R/1741173/584911.pdf
3rd Interim Report (PDF): http://hugin.info/130295/R/1741173/584925.pdf

[HUG#1741173]
 
Press spacebar to pause and continue. Press esc to stop.