Company Update

Jefferies 2015 Healthcare Conference

Company Update

June 3, 2015

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

Broadest antibody pipeline in the industry, based on HuCAL & Ylanthia  99 programs, 23 antibodies in clinical trials

Growing portfolio with currently 14 proprietary programs  Favorable economics

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

Program Partner Target Disease Area Discovery Preclinic Phase 1 Phase 2 Phase 3 Bimagrumab (BYM338) Novartis ActRIIB sIBM (musculoskeletal) Guselkumab (CNTO1959) Janssen IL23p19 Psoriasis Gantenerumab Roche Amyloid-ß Alzheimer’s disease 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 Cancer NOV–3 Novartis - not discl. Tarextumab (OMP-59R5) OncoMed Notch 2 Solid tumors VAY736 Novartis BAFF-R Inflammation

MOR202 - CD38 Multiple myeloma MOR209/ES414 Emergent PSMA/CD3 Prostate cancer Anetumab Ravtansine (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 NOV-10 Novartis - Cancer PF-05082566 Pfizer 4-1BB Solid tumors Vantictumab (OMP-18R5) OncoMed Fzd 7 Solid tumors MOR106 Galapagos - Inflammation MOR107 (LP2) - AT2-R Fibrosis 27 programs Various - Various Immuno-oncology program Merck Serono - Cancer 7 MOR programs - - Various 85 Partnered Programs 39 programs Various - Various 14 MOR Programs

Program Indication Discovery Preclinic Phase 1 Phase 2 Phase 3 Next Event Unpartnered Phase 2 mono-therapy MOR208 NHL FTD, orphan status US & EU data update Start DLBCL combo trials Data from IST combo trial CLL Orphan status US & EU Start of new combo trials ALL Phase 2 IST + NK cells Phase 1/2a data update MOR202 Multiple myeloma Start of combo cohorts Co-development & co-promotion with Emergent BioSolutions

MOR209/ES414 Prostate cancer Phase 1 data

Licensed to GSK (tiered, double-digit royalties)

MOR103 Inflammation Start phase 2b study in RA

Early-stage programs

MOR106 Inflammation Start of phase 1 in 2016

MOR107 Fibrosis Immuno-oncology program Cancer 7 Programs Various

 Fc-enhanced, humanized antibody targeting CD19 THE − Fc modification leads to dramatically enhanced B cell depletion DRUG  Convenient dosing schedule, straightforward manufacturing  Encouraging single agent activity in NHL and CLL  Fast Track Designation in DLBCL  FDA & EMA Orphan Drug Status in DLBCL and CLL

 Encouraging single-agent activity CLINICAL  Well tolerated  Matured data show six complete remissions with durable responses in DLBCL and FL: − ORR in all subtypes: 23% (28%*) − ORR in DLBCL: 26% (36%*) − Longest response in DLBCL so far 14.2 months − ORR in FL: 26% (30%*) − Longest response in FL so far 15.4 months

* in evaluable patients

200 Tumor shrinkage data represent mean values of measurements performed by two independent central radiologists

150

Data available for 60 patients 100 DLBCL (n=19) FL (n=25) Other iNHL (n=7) 50 MCL (n=9)

from baselineto nadir 0 Percentage change in indicator lesion indicator in change Percentage -50

-100 Very encouraging single-agent activity in patients with R-R NHL

 DLBCL: Initiate two combo trials, with lenalidomide & with bendamustine, in H2 2015 NEXT  CLL: Initiate combo trials, Q4 2015/Q1 2016  ALL: Initiate pediatric phase 2 study, with NK cell transfer from parental donor (IST at St. Jude Children's Research Hospital, USA), in H2 2015

MOR202 Shows High ADCC and ADCP  HuCAL antibody targeting CD38 Activity as Single Agent THE  Binds a unique epitope with high affinity DRUG  Kills MM cells in vitro and across multiple in vivo models (ADCC & ADCP)  Best-in-class infusion tolerability as consistent 2-hour infusion  Fully owned by MorphoSys

 Early signs of clinical activity with cases of long-lasting tumor control DATA  Safe and tolerable dosed weekly and biweekly  Best-in-class infusion tolerability as consistent 2-hour infusion with no infusion reaction in combo with dexamethazone  First clinical data hint towards a balanced and potentially best-in- class safety/efficacy profile  Preclinical data demonstrate synergistic potential with immunomodulatory agents

Data from patients in cohorts 5–8 who have received at least 1 treatment cycle

DEX, dexamethasone; MR, Minor Response; PD, progressive disease; SD, stable disease, VGPR, very good partial response Encouraging activity and long lasting tumor control already demonstrated with low doses of MOR202

 16 mg/kg cohort MOR202 + dexamethazone NEXT  Combination cohorts with pomalidomide and with lenalidomide

DRUG  Bi-specific anti-PSMA/anti-CD3 antibody  Redirects T cells to kill tumor cells expressing PSMA in vitro and in vivo

DATA  Well-tolerated in NHP single-dose and repeat-dose studies − Reduced cytokine release upon T cell activation compared to other formats  Prolonged serum half-life in mouse and NHP compared to antibody fragments

NEXT  Phase 1 in mCRPC in U.S. and Australia ongoing − Stage 1: identify MTD of MOR209/ES414 administered iv − Stage 2: evaluate clinical activity in patients with & without prior chemotherapy

Program Partner Target Indication Phase 1 Phase 2 Phase 3 Bimagrumab Novartis ActRIIB sIBM (52 weeks) (BYM338) sIBM (long-term study) Cachexia (COPD) Cachexia (cancer) Hip fracture surgery Sarcopenia 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 HER2+ cancer Advanced solid tumors NOV-7 Novartis n.d. Eye disease NOV-8 Novartis n.d. Inflammation NOV-9 Novartis n.d. Diabetic eye disease NOV-10 Novartis n.d. Cancer

Program Partner Target Indication Phase 1 Phase 2 Phase 3 Guselkumab Janssen/J&J IL23p19 Psoriasis (VOYAGE 1) (CNTO1959) Psoriasis (VOYAGE 2) Psoriasis (NAVIGATE) Pustular/Erythrodermic Psoriasis Moderate to severe psoriasis Active psoriatic arthritis Gantenerumab Roche Amyloid-ß Mild Alzheimer‘s disease Genetically predisposed 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 (ALPINE) (OMP-59R5) Small cell lung cancer (Pinnacle) 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 Advanced solid tumors, combo with mogamulizumab

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

CLINICAL  Phase 2 results in sIBM[1]: DATA − Muscle mass increased substantially from baseline, approx. 5% more than placebo − Muscle gain was functional as supported by parallel increases in strength and 6-minute sIBM patient who has typical prominent weakness and atrophy of quadriceps and walking distance finger flexors[2]

NEXT  Pivotal study in sIBM with 240 patients ongoing, completion scheduled in Q4 2015  Listed by Novartis as “planned filing 2016”  Phase 2 read-outs in hip fracture surgery, [1] A Amato et al; Neurology; Nov 7, 2014, online sarcopenia expected in 2016 [2] WK Engel and V Askanas; Neurology 2006; 20-29

DRUG  HuCAL antibody specific for IL-23, doesn’t bind IL-12  Dosing schedule sc q8w or even less frequently  Being developed in psoriasis and psoriatic arthritis

CLINICAL DATA Results from phase 2b study: 293 patients with mild-to-moderate plaque psoriasis @week 16 Placebo 5 mg 50 mg 200 mg 15 mg 100 mg Humira at week 0, 4, then every 12 weeks every 8 weeks PGA 0 or 1 7% 34% 79% 83% 61% 86% 58% PASI 75 5% 44% 81% 81% 76% 79% 70% PASI 90 2% 34% 45% 57% 34% 62% 44%

NEXT  Three Phase 3 trials scheduled for completion in 2016  “Planned filings 2013–2017” (J&J analyst day 2013)

DRUG  HuCAL antibody against amyloid-ß, binds N-

terminus and middle of peptide

 Binds/disrupts amyloid plaque and oligomers; binds peptide only weakly

CLINICAL  Phase 1, gantenerumab cleared brain amyloid from baseline DATA very efficiently in mild-to-moderate patients % Amyloid change  Phase 3 trial in prodromal patients Data from Phase 1 discontinued based on futility analysis Effect of gantenerumab on amyloid load as indexed by PET SUVR at end of  Phase 3 Marguerite RoAD trial with 1,000 treatment patients with mild AD ongoing  DIAN network trial in genetically pre-disposed patients ongoing

NEXT  Data from discontinued study will be shared by Roche with the medical community after full review and analysis

Data: Courtesy of Roche

History  2012 − MOR takes minority stake in Lanthio Pharma  2015: Acquisition of Lanthio Pharma Most Advanced Program  LP2 (re-named MOR107) − Pre-IND candidate for fibrotic diseases − Potent angiotensin AT2 receptor (ATR2)- Lanthio Pharma dependent activity in vivo  Groningen, Holland  − Start of Phase 1 expected 2016 Founded: 2010  10 employees

Guidance in € million 2014A Q1 2015 2015 Group Revenues 64.0 70.4 101-106 Proprietary R&D Expenses 36.4 10.4 56-63 (incl. Technology Development) EBIT -5.9 52.8 9-16 Cash, cash equivalents & marketable securities 352.8 349.7 as well as other short-term and long-term financial assets

Updated data from phase 2 mono-therapy trial at ASCO 2015 MOR208 NHL: Start phase 2 LEN & BEN combo trials in DLBCL √ CLL: Start phase 2 combo trial

ALL: Start phase 2 pediatric IST - MOR208 plus NK cell transfusion

Data from phase 1/2a trial at ASCO 2015 MOR202 Start phase 1/2a LEN & POM combo cohorts and data updates √ MOR209 First phase 1 data expected in 2016

Bimagrumab Data from pivotal trial in sporadic inclusion body myositis expected early 2016

Guselkumab Data from 3 pivotal trials in psoriasis expected 2016

Pipeline Up to 10 new INDs Potential in-licensing of additional programs

© MorphoSys - June 2015 22 Clinical TrialsScheduledCompletionfor © MorphoSys MorphoSys © PHASE 1 PHASE 2 PHASE 3 Potentialclinicaldata events basedMorphoSys trial design on estimates & MCP LFG316 Geographic LFG316 Multiple Multiple MOR202 cancer HER2+ LJM716 tumors solid Advanced LJM716 Various BI BAY94 COPD CNTO6785 arthritis Rheumatoid CNTO6785 sIBM Bimagrumab Solid Solid - 836845

tumors - 9343

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June 2015 June yeloma

atrophy

tumors (combo) (combo)

√ √

2015 Pancreatic Vantictumab NSCLC Vantictumab Breast Vantictumab tumors Solid Tarextumab NHL (mono (mono NHL MOR208 (mono) ALL MOR208 CLL ( MOR208 MOR208 combo

cancer

IST

cancer

with update)

len

)

√ √

Psoriasis (VOYAGE (VOYAGE Psoriasis Guselkumab 1) (VOYAGE Psoriasis Guselkumab HER2+ cancer ( cancer HER2+ LJM716 Solid Vantictumab Solid BI NSCLC BI Sarcopenia Bimagrumab Hip Bimagrumab Advanced BI RRMS VAY736 ESCC, LJM716 - - - 836845 836845 836845 fracture tumors tumors

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urgery w/BYL719 combo) combo) tumors 2)

2016 Psoriasis Guselkumab Prostate MOR209 Pancreatic cancer Pancreatic Tarextumab

MOR Programs Partnered Programs

(NAVIGATE) cancer

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.