Company Update March 12, 2014

Barclays 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 assets MOR103, MOR202 & MOR208

Broad partnered pipeline based on proprietary HuCAL technology

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

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 MOR103 GSK GM-CSF Inflammation MOR208 - CD19 Cancer BHQ880 Novartis DKK-1 Cancer CNTO3157 Janssen - Inflammation CNTO6785 Janssen - Inflammation Guselkumab (CNTO1959) Janssen IL23p19 Inflammation LFG316 Novartis C5 Ophthalmology LJM716 Novartis HER3 Cancer NOV – 3 Novartis - not discl. OMP-59R5 OncoMed Notch 2 Cancer VAY736 Novartis BAFF-R Inflammation

MOR202 Celgene CD38 Cancer BAY94-9343 Bayer Mesothelin (ADC) Cancer BI – 836845 BI IGF-1 Cancer NOV – 7 Novartis - Ophthalmology NOV – 8 Novartis - Inflammation PF-05082566 Pfizer 4-1BB Cancer Vantictumab (OMP-18R5) OncoMed Fzd 7 Cancer 21 Programs Various - Various 75 Partnered Programs 40 Programs Various - Various 6 MOR Programs

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

Un-partnered

MOR208 CD19 ALL

NHL

CLL (IST)

3 Programs Various

MOR103 MOR202  Out-licensed on Phase 1b/2a data in RA  Global co-development and European co-promotion agreement GSK  Costs: 1/3 MorphoSys, 2/3 Celgene  Responsible for development and  Upfront payment of EUR 70.8m commercialization of MOR103 in all indications  Equity investment of EUR 46.2m MorphoSys receives  Up to EUR 511m in development, regulatory and sales milestones  EUR 22.5 million upfront payment  Co-promotion in Europe with 50:50 profit  Up to EUR 423 million in success-based share payments  Exclusive Celgene in rest-of-world, tiered  Tiered, double-digit royalties on net sales double digit royalties to MOR

DRUG Results from Phase 1b/2a Trial in RA

 HuCAL IgG1 targeting GM-CSF - DAS28 Scores over 16 weeks -

 GM-CSF is a key inflammatory mediator in RA and other inflammatory conditions

DIFFERENTIATION  Targets monocytes & macrophages  Ultra-high affinity

 Fast onset of therapeutic effect Mean change from from Meanchange baseline STATUS  Phase 1b/2a trial in RA patients showed Week excellent efficacy, durable response & clean safety profile  Very fast onset of therapeutic effect  Phase 1b in MS ongoing  Durable response  Global license agreement with GSK  Clean safety profile

Administration of MOR103

DRUG MOR202 Combination with Lenalidomide Significantly Prolongs Survival in a  High affinity HuCAL antibody targeting CD38 Ramos in Vivo Mouse Model  Binds to a unique epitope

DIFFERENTIATION  Induces ADCC and ADCP  Strong synergy with lenalidomide & bortezomib in pre-clinical models  2 hour infusion

STATUS  Phase 1/2a trial in relapsed or refractory MM patients ongoing  Further clinical studies, including combos, being planned  Global co-development and European co-promotion agreement with Celgene

Taken from poster presented at ASH 2012 - Abstract #4018

DRUG Best Responses (Phase 1 in CLL – presented@ASH2012)  Fc-enhanced, humanized antibody 0.3 1 3 6 9 12 Total (%) targeting CD19 mg/kg mg/kg mg/kg mg/kg mg/kg mg/kg Responses by NCI96  In-licensed from Xencor criteria (physical exam) Complete Response 0 DIFFERENTIATION Partial Response 2 1 3 12 18 (66.7) Stable Disease 1 1 1 1 0 4 8 (29.6)  Fc modification leads to dramatically Progressive Disease 0 enhanced B-cell depletion Unknown 1 (3.7) Response by IWCLL  Convenient dosing schedule 2008 criteria (CT scan) Complete Response 0  Straightforward manufacturing Partial Response 1 2 1 4 (14.8) Stable Disease 1 1 2 1 1 14 20 (74) Progressive Disease 1 1 2 (7.4) STATUS Unknown 1 (3.7)  Phase 2 ALL: 30 R/R patients Preliminary Phase 2a Results (CLL)  Phase 2 NHL: Up to 30 R/R patients each in FL, MCL, DLBCL & other indolent NHL Overall Total  Phase 2 CLL: Lenalidomide combo in response R/R CLL and untreated CLL patients Phase 1 4 (15%) 27 (IST – Investigator sponsored trial by OSU) Phase 2a 8 (30%) 27

Program Partner Target Indication Phase 1 Phase 2 Phase 3 Bimagrumab Novartis ActRIIB sIBM (BYM338) Cachexia (Cancer) Sarcopenia Mechanically ventilated Cachexia (COPD) 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 RRMS LJM716 Novartis HER3 ESCC HER2+ Cancer HER2+ Cancer comb. with trastuzumab Solid Tumors NOV-7 Novartis n.d Eye Disease NOV-8 Novartis n.d Inflammation

Program Partner Target Indication Phase 1 Phase 2 Phase 3 Gantenerumab Roche Amyloid-ß Prodromal AD Mild AD Genetically predisposed Japanese AD patients Guselkumab Janssen/J&J IL23p19 Psoriasis (CNTO1959) Rheumatoid Arthritis Palmoplantar Pustulosis CNTO3157 Janssen/J&J n.d. Asthma Safety/Pharmacokinetic CNTO6785 Janssen/J&J n.d. COPD Rheumatoid Arthritis OMP-59R5 Oncomed/GSK Notch 2 Pancreatic Cancer 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 Cancer Cancer PFE-05082566 Pfizer 4-1BB Solid Tumors, NHL

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  COPD-related cachexia  Sarcopenia  Mechanically ventilated patients  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 frombaseline

 Gantenerumab reduces brain amyloid 3x faster than change Amyloid % 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  Three Phase 2 studies:  Moderate to severe plaque-type psoriasis  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 Bimagrumab Ventilated patients $600m $4.9bn COPD Cachexia $1.0bn Sarcopenia $1.6bn

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; the numbers given do not represent company guidance.

Shareholdings by Investor Type Capital Increases 2013 Institutional Investors - 67% August Retail Investors 22% Investor: Celgene Novartis - 5% Cash raised: EUR 46.2m Celgene - 3% Treasury Stock - 1% Price: EUR 57.90 per share Management & Supervisory Boards - 2% September Investor: Institutional Investors (US/EU) 3% 5% Cash raised: EUR 84m Price: EUR 55.76 per share (at market) 22%

67%

MorphoSys AG (Prime Standard, TecDAX; FSE: MOR, OTC: MPSYY, Bloomberg: MOR:GR) Shares issued: 26,220,882 (December 31, 2013) Fully diluted number of shares: 26,987,681 (December 31, 2013)

in EUR million 2013A Guidance 2014

Group Revenues 78.0 58 to 63

Investment in Proprietary R&D 31.7 36 to 41

EBIT 9.9 -11 to -16

Cash, cash equivalents & marketable securities as well as other financial assets 390.7 as of December 31, 2013

© MorphoSys - March 2014 19 Clinical Clinical TrialsScheduled Completion for © MorphoSys © Phase 1 Phase 2 Phase 3 Potential data events based clinical on trial design MorphoSys & estimates Solid Solid Cachexia Multiple Cachexia Gantenerumab RA (vs. RA Bimagrumab Bimagrumab Guselkumab Guselkumab undisclosed CNTO3157 Safety AD/Japan MOR103 Psoriasis - LJM716 tumors NOV

March 2014 Stelara

s (

clerosis - /PK Cancer (COPD) 3 /Mono

)

2014

Palmoplantar p Palmoplantar Solid t Solid BAY94 Ventilated p Ventilated Multiple Bimagrumab Guselkumab Solid Solid CNTO3157 MOR202 MOR208 LJM716 umors/Combo Asthma - B 9343 (ADC) - tumors ALL Myeloma atients

ustulosis

CNTO6785 CNTO6785 BI BI BI Cancer Cancer COPD – –

RA 836845 836845

2015

Geographic Atrophy Geographic Solid t Solid Pancreatic Multiple Bimagrumab Breast Breast OMP OMP OMP VAY736 LFG316 LFG316 LJM716 NSCLC umors/Mono sIBM MCP - - - Sclerosis c 18R5 18R5 18R5 ancer

ancer

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.