Company Update November 20, 2014

Jefferies 2014 Global Healthcare Conference

This presentation includes forward-looking statements. Actual results could differ materially from those included in the forward-looking statements due to various risk factors and uncertainties including changes in business, economic competitive conditions, regulatory reforms, foreign exchange rate fluctuations and the availability of financing. These and other risks and uncertainties are detailed in the Company’s Annual Report.

MorphoSys is committed to developing a valuable pipeline of truly differentiated therapeutic antibodies built using proprietary technologies.

Exciting proprietary portfolio with 10 programs, including 3 clinical candidates

Broad partnered pipeline based on proprietary HuCAL/Ylanthia technologies

Strong balance sheet and recurring cash-flows support investment in R&D

© MorphoSys - November 2014 3 The MorphoSys Pipeline 21 Clinical Programs, 94 Total Most advanced development stage Program Partner Target Disease Area Discovery Preclinic Phase 1 Phase 2 Phase 3 Bimagrumab (BYM338) Novartis ActRIIB Musculoskeletal Gantenerumab Roche Amyloid-ß CNS Guselkumab (CNTO1959) Janssen IL23p19 Inflammation MOR103 GSK GM-CSF Inflammation MOR208 - CD19 ALL, CLL, NHL BHQ880 Novartis DKK-1 Multiple Myeloma CNTO3157 Janssen - Inflammation CNTO6785 Janssen - Inflammation LFG316 Novartis C5 Eye Diseases LJM716 Novartis HER3 HER2+ Cancer NOV–3 Novartis - not discl. Tarextumab (OMP-59R5) OncoMed Notch 2 Solid Tumors VAY736 Novartis BAFF-R Inflammation MOR202 Celgene CD38 Multiple Myeloma BAY94-9343 Bayer Mesothelin (ADC) Solid Tumors BI–836845 BI IGF-1 Solid Tumors NOV–7 Novartis - Eye Diseases NOV–8 Novartis - Inflammation NOV-9 Novartis - Diabetic Eye Diseases PF-05082566 Pfizer 4-1BB Solid Tumors Vantictumab (OMP-18R5) OncoMed Fzd 7 Solid Tumors MOR209/ES414 Emergent PSMA/CD3 Prostate Cancer MOR106 Galapagos - Inflammation 26 programs Various - Various Immuno-oncology program Merck Serono - Cancer 4 MOR programs Various - Various 84 Partnered Programs 40 programs Various - Various 10 MOR Programs

Partner Programs MOR Programs

 Partner provides target  MorphoSys selects program at  MorphoSys technology used to develop − target stage (discovery) or optimized antibody lead candidate − later (in-licensing)  Partner responsible for development and  MorphoSys is fully responsible for pre-clinical commercialization and clinical development  MorphoSys receives milestone & royalties  Various partnering strategies

Partner Partnering

Discovery Market Discovery Market

Program Partner Target Indication Discovery Preclinic Phase 1 Phase 2 Phase 3

Fully partnered (tiered, double-digit royalties)

MOR103 GSK GM-CSF Rheumatoid Arthritis

Multiple Sclerosis

Co-development & co-promotion

MOR202 Celgene CD38 Multiple Myeloma

MOR209/ES414 Emergent PSMA/CD3 Prostate Cancer

Unpartnered

MOR208 CD19 ALL

NHL

CLL (IST)

Early-stage programs

MOR106 Galapagos n.d. Inflammation

Immuno-oncology Merck program Serono n.d. Cancer

4 Programs n.d. Various

DRUG MOR202 Shows High ADCC and ADCP Activity as Single Agent  High affinity HuCAL antibody targeting CD38  Binds to a unique epitope

DIFFERENTIATION  Ability to kill MM cells in vitro and across multiple pre-clinical in vivo models (ADCC & ADCP)  Strong synergy with IMiDs in pre-clinical models (CD38 upregulation on MM cells and effector cell activation)  2 hour infusion STATUS  Phase 1/2a dose-escalation trial in relapsed or refractory MM patients ongoing  Additional cohorts with weekly dosing schedule, with and without dexamethasone ongoing  Combination trials with pomalidomide and lenalidomide planned  Global co-development and European co-promotion agreement with Celgene

DRUG  Bi-specific anti-PSMA/anti-CD3 immunotherapeutic: − targeting PSMA on prostate cancer cells − targeting CD3 on cytotoxic T cells DIFFERENTIATION  Redirects T cells to kill tumor cells expressing PSMA in vitro and in vivo  Reduced cytokine release upon T cell activation compared to other formats  Prolonged serum half-life in mouse and NHP compared to antibody fragments STATUS  IND filed; phase 1 clinical trial to be initiated in mCRPC in the U.S. and Australia  License agreement with Emergent to co- develop and commercialize MOR209/ES414

DRUG  Fc-enhanced, humanized antibody targeting CD19  In-licensed from Xencor DIFFERENTIATION  Fc modification leads to dramatically enhanced B-cell depletion  Convenient dosing schedule CLL Phase I/IIa (IWCLL 2008 Guideline)  Straightforward manufacturing

STATUS 30% 38%  Phase 2 NHL (Up to 30 R/R patients each in FL, MCL, DLBCL & other indolent NHL) 59%  Overall response rate in stage 1 56% over all NHL subtypes was 24% 7%  Data will be presented at ASH 2014 4% 6%  Phase 2 ALL: 30 R/R patients ALL PTS (N=27) 12MG/KG (N=16)  Phase 2 CLL: Lenalidomide combo in Unknown PD SD PR R/R CLL and untreated CLL patients (IST)

Program Partner Target Indication Phase 1 Phase 2 Phase 3 Bimagrumab Novartis ActRIIB sIBM (52 weeks) (BYM338) sIBM (long-term study) Cachexia (Cancer) Cachexia (COPD) Sarcopenia Hip Fracture Surgery BHQ880 Novartis DKK-1 MM (renal insufficiency) Smoldering MM LFG316 Novartis C5 Wet AMD Geographic Atrophy MCP NOV-3 Novartis n.d. n.d. VAY736 Novartis BAFF-R Pemphigus Vulgaris Primary Sjögren's Syndrome RRMS LJM716 Novartis HER3 ESCC (combo with BYL719) HER2+ Cancer (combo with BYL719 & trastuzumab) HER2+ Cancer, combination with trastuzumab Solid Tumors NOV-7 Novartis n.d. Eye Disease NOV-8 Novartis n.d. Inflammation NOV-9 Novartis n.d. Diabetic Eye Disease

Program Partner Target Indication Phase 1 Phase 2 Phase 3 Gantenerumab Roche Amyloid-ß Prodromal AD Mild AD Genetically predisposed AD, Japanese patients Biovailability Guselkumab Janssen/J&J IL23p19 Psoriasis (CNTO1959) Psoriasis Psoriasis Rheumatoid Arthritis Palmoplantar Pustulosis CNTO3157 Janssen/J&J n.d. Asthma Safety/Pharmacokinetic CNTO6785 Janssen/J&J n.d. COPD Rheumatoid Arthritis Tarextumab Oncomed/GSK Notch 2 Pancreatic Cancer (OMP-59R5) Small Cell Lung Cancer Solid Tumors Vantictumab Oncomed/Bayer Fzd 7 Solid Tumors (OMP-18R5) Breast Cancer Pancreatic Cancer NSCLC BAY94-9343 Bayer Mesothelin Solid Tumors BI-836845 BI IGF-1 Solid Tumors, Japanese patients EGFR mutant NSCLC Breast Cancer CRPC + enzalutamide Various solid cancer Advanced solid tumors PF-05082566 Pfizer 4-1BB Solid Tumors, NHL (+rituximab) Solid tumors, combination with PD-1 inhibitor MK-3475

DRUG  HuCAL antibody against ActRIIB  FDA breakthrough therapy designation for sporadic inclusion body myositis (sIBM)  Orphan drug designation in sIBM

DIFFERENTIATION  Novel mechanism of action  Phase 2 study showed that bimagrumab substantially benefited patients with sIBM STATUS  Pivotal study in sIBM ongoing  Phase 2 studies ongoing in: − Cancer-related cachexia (completed) − COPD-related cachexia − Sarcopenia (completed) − Hip Fracture Surgery  Listed by Novartis as “planned filing 2016”

M. Schuelke at al, N Engl J Med 2004;350:2682-8

DRUG  HuCAL antibody against amyloid-ß  Binds N-terminus and middle of peptide DIFFERENTIATION  Binds/disrupts amyloid plaque and oligomers; binds peptide only weakly from baseline

 Gantenerumab reduces brain amyloid 3x faster than % Amyloid change other amyloid-targeting substances in mild-to- moderate AD patients STATUS Data from Phase 1  Phase 3 SCarlet RoAD trial with 770 prodromal Effect of gantenerumab on patients (2 doses, 104 weeks on drug) amyloid load as indexed by PET SUVR at end of treatment − Data expected in 2016  Phase 3 Marguerite RoAD trial with 1,000 patients with mild AD − Estimated study completion date: 03/2019  Phase 3 DIAN network trial in genetically predisposed patients Data: Courtesy of Roche

DRUG  HuCAL antibody against IL-23

DIFFERENTIATION  Guselkumab binds the p19 sub-unit of IL-23, while Stelara binds the p40 sub-unit of IL-23 and IL-12  Higher specificity through selected inhibition of IL-23 may provide better risk/benefit profile

STATUS  Phase 2 study in psoriasis successfully completed, phase 3 trials have started (>2,000 patients)  Two additional Phase 2 studies: − Active rheumatoid arthritis − Palmoplantar pustulosis  Listed under “planned filings 2013 – 2017” (J&J analyst day 2013)

Source: Jetten AM, Nucl Recept Signal, 2009

Program Indication Forecast Peak Sales*

MOR103 Rheumatoid Arthritis $3.2bn

MOR202 Multiple Myeloma $2.1bn NHL $790m MOR208 CLL $350m $1.4bn ALL $250m sIBM $400m Cancer Cachexia $1.3bn $4.3bn Bimagrumab COPD Cachexia $1.0bn Sarcopenia $1.6bn Hip Fracture Surgery tbd

Gantenerumab Alzheimer’s Disease $15bn

Psoriasis $950m Guselkumab $2.6bn Rheumatoid Arthritis $1.6bn

* Based on an external study by Defined Health using publicly available information

in EUR million Guidance 2014 9-Month 2014

Group Revenues 58 to 63 46.9

EBIT -5 to -8 -3.7

Cash, cash equivalents & marketable securities 364.3 as well as other financial assets as of June 30, 2014

© MorphoSys - November 2014 18 © MorphoSys - November 2014 November MorphoSys - © Phase 1 Phase 2 Phase 3 Clinical TrialsCompletion Scheduled for Potentialclinic dataevents basedon Palmoplantar pustulosis Multiple sclerosis Gantenerumab Gantenerumab RA (vs. Stelara) Bioavailability Guselkumab Guselkumab Guselkumab AD/Japan MOR103 Psoriasis   2014 Solid tumors/Mono ahxa(Cancer) Cachexia ahxa(COPD) Cachexia al trial design & MorphoSys estimates MorphoSys al trial design& Bimagrumab Bimagrumab CNTO3157 CNTO3157 Safety/PK MOR208 LJM716 Asthma NHL  dacdsolidtumors Advanced Solid Tumors, Japan BAY94-9343 (ADC) Multiple Myeloma Bimagrumab Solid tumors Solid Cancer CNTO6785 CNTO6785 I–836845 BI – 836845 BI – 836845 BI – LFG316 MOR202 COPD sIBM MCP RA 2015 Solid tumors/Japan/Mono Solid tumors/Combo Pancreatic cancer Pancreatic cancer Vantictumab Vantictumab Vantictumab Vantictumab Breast cancer Tarextumab Tarextumab Solid tumors Solid tumors MOR Programs Partnered Programs LJM716 LJM716 NSCLC 19 Thank You

www.morphosys.com

Dr. Claudia Gutjahr-Löser Head of Corporate Communications & IR Phone +49 (0)89 / 899 27-122 Fax +49 (0)89 / 899 27-5122 Email [email protected]

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.