Engineering the Medicines of Tomorrow

Jens Holstein, Chief Financial Officer Jefferies 2019 Global Healthcare Conference June 5, 2019 This presentation includes forward-looking statements.

This communication contains certain forward-looking statements concerning the MorphoSys group of companies, including its financial guidance for 2019, the commencement, timing and results of clinical trials and release of clinical data both in respect of its proprietary product candidates and of product candidates of its collaborators, the development of commercial capabilities, in particular with respect to tafasitamab (MOR208) and the transition of MorphoSys to a fully integrated biopharmaceutical company, the expected time of launch of tafasitamab, interaction with regulators, including the potential approval of MorphoSys’s current or future drug candidates, including discussions with the FDA regarding the potential approval to market tafasitamab, and expected royalty and milestone payments in connection with MorphoSys’s collaborations. The forward-looking statements contained herein represent the judgment of MorphoSys as of the date of this release and involve known and unknown risks and uncertainties, which might cause the actual results, financial condition and liquidity, performance or achievements of MorphoSys, or industry results, to be materially different from any historic or future results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if MorphoSys’s results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such forward-looking statements, they may not be predictive of results or developments in future periods. Among the factors that may result in differences are that MorphoSys’s expectations regarding its 2019 results of operations may be incorrect, MorphoSys’s expectations regarding its development programs may be incorrect, the inherent uncertainties associated with competitive developments, clinical trial and product development activities and regulatory approval requirements (including that MorphoSys may fail to obtain regulatory approval for tafasitamab and that data from MorphoSys’s ongoing clinical research programs may not support registration or further development of its product candidates due to safety, efficacy or other reasons), MorphoSys’s reliance on collaborations with third parties, estimating the commercial potential of its development programs and other risks indicated in the risk factors included in MorphoSys’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. Given these uncertainties, the reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of publication of this document. MorphoSys expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or regulation.

The compounds discussed in this slide presentation are investigational products being developed by MorphoSys and its partners and are not currently approved by the U.S. Food and Drug Administration (FDA), European Medicine Agency (EMA) or any other regulatory authority (except for guselkumab/Tremfya®).

Partnered Discovery Employees: 329 (As of March 31, 2019)  Use of our technology in behalf of partners Proprietary Development  Development of own drug candidates

Locations  Headquarter near Munich, Germany  MorphoSys US Inc., Boston, U.S.

Dual Listing  Germany: Frankfurt Stock Exchange

 USA: Nasdaq, New York Proprietary Partnered Other Development Discovery (G&A, Selling)

Main focus: First product Broad pipeline: Solid financial MOR208, on the market: 29 products in position tafasitamab Tremfya® the clinic

Most advanced development stage Program Partner Target Disease area Phase 1 Phase 2 Phase 3 Launched Tremfya® (guselkumab) Janssen IL-23p19 Psoriasis Gantenerumab Roche Amyloid-ß Alzheimer’s disease Tafasitamab (MOR208) - CD19 Hematological malignancies 3 MOR202 I-Mab Biopharma CD38 Multiple myeloma Anetumab ravtansine (BAY94-9343) Bayer Mesothelin (ADC) Solid tumors BAY1093884 Bayer TFPI Hemophilia BHQ880 Novartis DKK-1 Multiple myeloma Bimagrumab (BYM338) Novartis ActRIIB Metabolic diseases CNTO6785 Janssen - Inflammation Ianalumab (VAY736) Novartis BAFF-R Inflammation 13 MOR103/GSK3196165 GSK GM-CSF Inflammation MOR106 Novartis/Galapagos IL-17C Inflammation MAA868 Anthos Therapeutics Factor XI Cardiovascular diseases Setrusumab (BPS804) Mereo/Novartis Sclerostin Brittle bone syndrome Tesidolumab (LFG316) Novartis C5 Eye diseases Utomilumab (PF-05082566) Pfizer 4-1BB Cancer Xentuzumab (BI-836845) BI IGF-1 Solid tumors BAY2287411 Bayer Mesothelin Cancer Elgemtumab (LJM716) Novartis HER3 Cancer MOR107 (LP2-3)* - AT2-R Not disclosed NOV–7 (CLG561) Novartis - Eye diseases NOV–8 Novartis - Inflammation NOV-9 (LKA651) Novartis - Diabetic eye diseases 12 NOV-10 (PCA062) Novartis - Cancer NOV-11 Novartis - Blood disorders NOV-13 (HKT288) Novartis - Cancer NOV-14 Novartis - Asthma PRV-300 (CNTO3157) ProventionBio TLR-3 Inflammation Vantictumab (OMP-18R5) OncoMed Fzd 7 Cancer

Partnered Discovery Programs Proprietary Development Programs Out-licensed Proprietary Development Programs * Phase 1 in healthy volunteers completed; currently in preclinical investigation

Program Partner Target Disease area Preclinical Phase 1 Phase 2 Phase 3

Tafasitamab - CD19 B cell malignanices (MOR208)

I-Mab MOR202 CD38 Multiple myeloma Biopharma*

Novartis/ MOR106 IL-17C Atopic dermatitis Galapagos MOR103/ GSK GM-CSF Inflammation GSK3196165 Oncology under MOR107** - AT2-R investigation I-Mab MOR210 C5aR Oncology Biopharma*

6 proprietary or co-developed programs in discovery

* For Development in China, Hong Kong, Macao, Taiwan and (MOR210 only) South Korea Proprietary Development Programs ** A phase 1 study in healthy volunteers was completed; currently in preclinical investigation Out-licensed Proprietary Development Programs © MorphoSys AG, Jefferies 2019 Global Healthcare Conference, 5 June 2019 7 Tafasitamab (MOR208): Proprietary Antibody in Hematological Cancers

The Drug Candidate  Main Focus of the Company  BTD based on L-MIND study since October 2017  Aim to bring Tafasitamab to the market as fast as possible Design of the Antibody  Proprietary antibody targeting CD19  Fc-enhanced to drive target cell-killing Promising Preclinical and Clinical Package  Depletes B cells in in vitro and in vivo models  Preclinical data supports multiple combination therapies Current clinical development  Phase 2 L-MIND and Phase 3 B-MIND in r/r DLBCL  Phase 2 COSMOS in r/r CLL/SLL

Tafasitamab

 Fc-enhanced to improve effector funtion  Mediates direct cell death  Encouraging single agent activity in r/r DLBCL & iNHL patients lenalidomide

Lenalidomide

 Activation and expansion of immune cells  Mediates direct cell death  Well studied as anti-lymphoma agent, alone or in combination

iNHL – Indolent Non-Hodgkin Lymphoma

DLBCL: Approx. 28,000 cases/year in the U.S. 60%

60% 50% Cure 50% Cure Responders HDCT/SCT 90% Relapse candidates Relapsed/ R-CHOP Non refractory Non responders ~40% DLBCL HDCT/SCT 40% 50% Not R-CHOP candidates candidates 50% 10% About 8,500 patients

Tafasitamab initial addressable U.S. market

SEER database, 2016; Crump et al. Blood. 2017; Van den Neste et al. BMT 2016; Farooq et al. British J Heam 2017; Figure partially adapted from Friedberg J American Soc Hem Education Book, 2011

L-MIND Primary Analysis Data (Data cut-off Nov. 30, 2018)

 80 patients

 Objective response rate (ORR): 60%

 Complete response rate (CR): 43%

 Partial response rate (PR): 17%

 Median progression free survival (mPFS): 12.1 months

 Median duration of response (mDoR): 21.7 months

 Median follow up: 17.3 months

Detailed presentation of the data set at the ICML in Lugano on June 22, 2019

2017 2018 2019 2020 2021

L-MIND Lenalidomide + tafasitamab in r/r DLBCL patients ineligible for HDCT and ASCT Phase 2

BTD Rolling Submission Potential Approval Planned in the U.S.

B-MIND Bendamustine + tafasitamab vs. bendamustine + rituximab in r/r DLBCL Phase 2/3 patients ineligible for HDCT and ASCT

Allcomers (N = 330) Interim Analysis Potential Primary Analysis

Biomarker amendment (N = 450)

FRONT LINE tafasitamab + R-CHOP vs. tafasitamab + Len + R-CHOP in treatment-naïve DLBCL pts. Planned Phase 1b Planned Pivotal Phase 2/3

More information about ongoing trials at clinicaltrials.gov

Partnered with I-Mab  I-Mab: Exclusive development/commercialization rights in China, Taiwan, Hong Kong and Macao  Collaboration economics . $20m upfront . Up to $100m milestones . Tiered, double digit royalties Clinical development  I-Mab . Phase 3: MOR202 + LEN in r/r multiple myeloma . Phase 2 (pivotal): MOR202 in 3rd-line r/r multiple myeloma  MorphoSys . Plans for phase 2 study in autoimmune disorder in Q3, 2019

The Product Candidate  Antibody targeting IL-17C, a cytokine implicated in a number of inflammatory disorders  Originates from 50/50 co-development with Galapagos  First publicly disclosed program against this cytokine

Results from the phase 1 study in atopic dermatitis patients

EASI, % change from baseline, pooled patients over all cohorts (median)

Worldwide, exclusive partnership with Novartis*  Up-front: €95m  Milestones: up to approx. €850m  Royalties: tiered, low teens to low twenties  Novartis: R&D, manufacturing & commercialization costs Clinical Development  MOR, Galapagos: Current studies in atopic dermatitis (AtD): . Phase 2: “IGUANA”, ~240 patients, moderate to severe AtD . Phase 2: “GECKO“, combination with topical steroids . Phase 1: Study with a subcutaneous formulation  MOR and Galapagos to start additional studies in AtD  Novartis . Responsible for subsequent development . Will explore potential of MOR106 in additional indications

* All payments shared with Galapagos 50/50

Partnered Discovery Programs Proprietary Development Programs Out-licensed Proprietary Development Programs * Phase 1 in healthy volunteers completed; currently in preclinical investigation

The Drug Tremfya ® sales reported by Janssen  First-in-class anti-IL-23 human monoclonal antibody 250  Generated using MorphoSys’s HuCAL technology Q1 Q2 Q3 Q4 Q1 Growing Royalty Stream 200

 Royalty income 2019 expected between EUR 23 to 30m $ - 150 US

100

2018 2019 50 Broad Clinical Development

Phase 1 Phase 2 Phase 3 Approved/ Launched . Familial . Crohn’s disease . Plaque psoriasis (adults . Psoriasis (U.S., EU, adenomatous . Hidradenitis & pediatric patients) Canada, Brazil, polyposis suppurativa . Pustular/erythrodermic Australia, Japan) . Ulcerative colitis psoriasis . Psoriatic arthritis . Psoriatic arthritis (Japan) . Palmoplantar pustulosis (Japan)

Reported FY 2018 Q1 2019 Guidance 2019 In € million (March 13, 2019) (May 7, 2019) (Issued March 13, 2019)

Group Revenues 76.4 13.5 43 to 50*

Proprietary R&D Expenses 98.3 22.6 95 to 105 (incl. Technology Development)

EBIT -59.1 -23.6 -127 to -137

Cash Position End of Q1 2019: EUR 431.2 m

Total ordinary shares issued as of April 30, 2019: 31,839,572

Germany, Frankfurt Stock Exchange: MOR U.S., Nasdaq Global Market: MOR

*Revenues are expected to include royalty income from Tremfya® ranging from EUR 23-30 million on constant USD currency.

Proprietary Program Expected Newsflow Tafasitamab L-MIND (DLBCL) (MOR208)  Planned BLA submission by end of 2019; review expected mid-2020  Data from synthetic Len-only control arm  Continue interactions with European authorities

Commercial capabilities: Proceed build-up in the U.S.

B-MIND (amended trial DLBCL)  Discussions with FDA about biomarker assay expected mid-2019  Pre-planned interim analysis in H2 2019

1st line DLBCL  Start of Phase 1b planned in H2 2019  Pivotal Phase 2/3 planned to start mid-2020

COSMOS (CLL): Continue ongoing study and present data in 2019

Proprietary Program Expected Newsflow MOR202  MOR: Start of clinical development in an autoimmune disease mid-2019 (I-Mab Biopharma*)  I-Mab: Start of additional studies in multiple myeloma  I-Mab: start of clinical development in systemic lupus erythematosus MOR106  Primary completion of Phase 2 IGUANA and Phase 1 bridging study (Novartis/  Start of further studies in atopic dermatitis by MOR and GLPG Galapagos**) MOR103/GSK3196165 Start of a phase 3 in RA by GSK expected in H2 2019 (GSK**) MOR107 Continue preclinical investigations with a focus on oncology

Partnered Discovery Expected Newsflow

Partnered Discovery Phase 2 readouts for multiple programs***

* For development in China, Hong Kong, Taiwan, Macao ** Fully out-licensed ***According to clinicaltrials.gov

Continue to advance tafasitamab to regulatory approval

Build U.S. commercial capabilities for anticipated 2020 launch of tafasitamab Fully- integrated biopharma Expand tafasitamab into other lines and indications company

Drive other programs in proprietary portfolio forward

Corporate Communications & IR Phone +49 (0)89 / 899 27-404 Fax +49 (0)89 / 899 27-5404 Email [email protected]

www.morphosys.com

MOR208, MOR202, MOR106, MOR103, anetumab ravtansine, gantenerumab and all other product candidates mentioned here are investigational drugs and have not been approved by the FDA or other ex-US regulatory agencies. HuCAL® , HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay®, RapMAT®, arYla®, Ylanthia®, 100 billion high potentials®, Slonomics®, Lanthio Pharma® and LanthioPep® are registered trademarks of the MorphoSys Group. Tremfya® is a trademark of Janssen Biotech, Inc.