Ylanthia® antibody technology

	Next higher product group	antibody technology_o
	Status	2012-11-07 sales start
	Organisation	MorphoSys AG (FSE: MOR; Prime Standard Segment, TecDAX; Nasdaq: MOR)
	Group	MorphoSys (Group)

MorphoSys AG. (11/7/12). "Press Release: MorphoSys Announces Expansion of Antibody Alliance. Collaboration to Benefit from Access to Newest Technologies".

MorphoSys AG (FSE: MOR; Prime Standard Segment, TecDAX) announced today an expansion of its strategic alliance with Novartis. The long-term alliance will now benefit from new technologies that were not available when the current agreement between the two companies was signed in 2007. The aim is to accelerate the discovery of new therapeutic antibodies and to increase the overall productivity of the collaboration. Financial details were not disclosed.

"Today's announcement marks the commercial launch of our new technology platform Ylanthia", commented Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. "We are delighted to kick off this new phase in our growth as the premier source of therapeutic antibodies with our biggest partner, Novartis. This alliance is very successful and will continue to contribute significantly to our overall pipeline of therapeutic antibodies. I'm confident that by adding the newest technologies to our collaboration, we can be even more productive. The benefit will be better therapeutic antibodies, made faster than was previously possible."

"We are pleased to expand our relationship with MorphoSys," commented Mark Fishman, President of the Novartis Institutes for BioMedical Research. "A number of programs have emerged from the collaboration so far, and we're looking forward to adding to them in the years ahead. Novartis is committed to bringing innovative antibody-based therapies to market and the collaboration with MorphoSys is a key part of that effort."

Under the terms of the agreement announced today, the companies will apply the entire suite of new technologies available to MorphoSys, including Ylanthia and Slonomics, to make therapeutic antibodies. It is expected that the next-generation Ylanthia platform will follow HuCAL, which is the technology currently used by the partners to source therapeutic antibody candidates. Antibody optimization will use Slonomics-based technology for precise optimization of antibody properties. The companies will also cross-license future improvements for their mutual benefit. Novartis will continue to fund a dedicated research team at MorphoSys and pay annual license fees as previously until the end of the collaboration in 2017. The companies agreed to waive the existing co-development options, as MorphoSys looks to increase its focus on its own highly promising proprietary portfolio of therapeutic antibody candidates.

MorphoSys and Novartis started working together in 2004. In December 2007, the two companies substantially extended their relationship and forged one of the most comprehensive strategic alliances in the discovery and development of biopharmaceuticals. The collaboration has resulted in six clinical programs to date, with four currently being evaluated in phase 2.

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. The company's AbD Serotec unit uses HuCAL and other antibody technologies to generate superior monoclonal antibodies for research and diagnostic applications.

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
Senior Manager 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