Company Update Safe Harbor

August 2016

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 developing a pipeline of truly differentiated therapeutic antibodies built using proprietary technologies

 Munich, Germany-based biopharmaceutical company  The industry’s largest antibody therapeutic pipeline assembled using proprietary technologies: − 104 active therapeutic programs − 27 antibodies in clinical trials  Growing portfolio of attractive proprietary assets  Strong balance sheet with recurring cash-flows supports growing investment in R&D  Successful track-record of partnering world-wide  Listed on the German TecDAX

Innovative Targets  GPCRs, ion channels

 Immune checkpoints

 MHC-presented, tumor- associated peptides

 Source of novel targets

Proprietary Platforms  Human antibody library

 Protein optimization DIFFERENTIATED DRUG CANDIDATES  Lanthipeptides

Program Partner Target Disease Area Discovery Preclinic Phase 1 Phase 2 Phase 3 Guselkumab (CNTO1959) Janssen (J&J) IL23p19 Psoriasis Gantenerumab Roche Amyloid-ß Alzheimer’s disease MOR208 - CD19 ALL, CLL, NHL MOR202 - CD38 Multiple myeloma MOR103/GSK3196165 GSK GM-CSF Inflammation Anetumab Ravtansine (BAY94-9343) Bayer Mesothelin (ADC) Solid tumors BI–836845 BI IGF-1 Solid tumors Bimagrumab (BYM338) Novartis ActRIIB Musculoskeletal diseases BHQ880 Novartis DKK-1 Multiple myeloma BPS804 Mereo/Novartis Sclerostin Brittle bone syndrome CNTO3157 Janssen (J&J) - Inflammation CNTO6785 Janssen (J&J) - Inflammation Elgemtumab (LJM716) Novartis HER3 Cancer Tarextumab (OMP-59R5) Oncomed Notch 2 Solid tumors Tesidolumab (LFG316) Novartis C5 Eye diseases VAY736 Novartis BAFF-R Inflammation Utomilumab (PF-05082566) Pfizer 4-1BB Solid tumors MOR209/ES414 Aptevo PSMA/CD3 Prostate cancer MOR106 Galapagos - Inflammation BAY1093884 Bayer TFPI Hemophilia NOV-7 Novartis - Eye diseases NOV-8 Novartis - Inflammation NOV-9 Novartis - Diabetic eye diseases NOV-10 Novartis - Cancer NOV-11 Novartis - Blood disorders NOV-12 Novartis - Prevention of thrombosis Vantictumab (OMP-18R5) Oncomed Fzd 7 Solid tumors MOR107 (LP2) - AT2-R Fibrosis Immuno-oncology program Merck - Cancer Immuno-oncology program Immatics - Cancer 90 Partnered Discovery Programs 6 MOR programs - - Various 13 MOR Programs 1 Outlicensed Program In addition, 23 partnered programs in preclinic, and 45 partnered programs in discovery © MorphoSys AG, Company Update - August 2016 5 The MOR Portfolio 5 Clinical Product Candidates, 14 Total

Program Indication Target Discovery Preclinic Phase 1 Phase 2 Phase 3 Unpartnered MOR208 DLBCL FTD, orphan status US & EU CD19 CLL Orphan status US & EU MOR202 Multiple myeloma CD38 MOR107 Fibrosis AT2-R Immuno-oncology MHC-associated program Cancer peptides 6 Programs Various Various Co-development & co-promotion MOR209/ES414 (Emergent) Prostate cancer PSMA / CD3 MOR106 (Galapagos) Inflammation Undisclosed Immuno-oncology program Cancer Undisclosed (Merck Serono) Outlicensed to GSK

RA MOR103/ GM-CSF GSK3196165 Osteoarthritis of the hand

CD19 is an ideal target in NHL because  CD19 is broadly and homogeneously expressed − Across different NHL subtypes incl. DLBCL and CLL  CD19 conveys a survival signal for B cells − Signaling via PI3K/AKT and c-Myc − Especially important for an extended treatment  CD19 expression seems to be preserved − Even after pretreatments targeting B cells

MOR208 is an Fc-enhanced, humanized IgG1 antibody targeting CD19  Fc modification leads to dramatically enhanced B cell depletion by ADCC, ADCP and direct cytotoxicity  Straightforward manufacturing ADCC  Strong pre-clinical support for combo therapy

ADCC, antibody dependent cellular cytotoxicity; ADCP, antibody dependent cell phagocytosis

Response Rate DLBCL iNHL incl. FL in evaluable patients* n=35 n=45 n(%)

Disease Control Rate (DCR) 14 (40%) 33 (73%)

Overall Response (ORR) 9 (36%) 13 (33%)

Complete response (CR) 2 (6%) 5 (11%)

Partial response (PR) 7 (20%) 8 (18%)

Stable disease (SD) 5 (14%) 20 (44%)

DCR was considered to be a relevant efficacy endpoint as the majority of patients with stable disease had marked target lesion shrinkage but as per study design were not treated beyond cycle 3

*Investigator assessed Jurczak et al., Abstract #7545, ASCO 2016

Indication 2016 2017 2018

NHL MOR208 (12 mg/kg); N=92

DLBCL L-MIND: MOR208 (12mg/kg) + lenalidomide; 2nd line R/R; N~80

B-MIND: Safety evaluation leading into anticipated pivotal study MOR208 (12 mg/kg) + bendamustine vs. rituximab + bendamustine; 2nd line R/R; N~330

CLL COSMOS: MOR208 (12mg/kg) + combo partner; BTKi-failures

MOR208 (9mg/kg) + lenalidomide; R/R, naive & Richter’s Transformation N~80 (Ohio State Univ. IIT) MOR208 + ibrutinib in ibrutinib failures }

Phase 2 Phase 2/3 IIT: Investigator-initiated trial

Fully human monoclonal HuCAL IgG1 antibody  Targeting a unique epitope of CD38  Inducing potent immune effector mechanisms ADCC and ADCP

Status/Clinical Data:  Clinical data from ongoing phase 1/2a study in multiple myeloma were presented at ASCO 2016  MOR202 (8 mg/kg) plus Pom/Dex in r/r multiple myeloma (MM) patients shows two complete responses (CR) out of four patients treated per protocol  MOR202 (8 mg/kg) plus Len/Dex in MM shows two partial responses (PR) and one very good partial response (VGPR) out of the four patients  MOR202 administered in doses of up to 16 mg/kg as a 2-hour intravenous infusion with ADCC = Antibody-Dependent Cell-Mediated Cytotoxicity; low incidence of infusion-related reactions ADCP = Antibody-Dependent Cell-Mediated Phagocytosis; (IRR) CDC = Complement-Dependent cytotoxicity

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 plaque-type psoriasis Palmoplantar pustulosis Active psoriatic arthritis Gantenerumab Roche Amyloid-ß Mild Alzheimer‘s disease Prodromal Alzheimer‘s disease Genetically predisposed Safety, Tolerability, and PK (sc) Anetumab Ravtansine Bayer Mesothelin Mesothelioma (MPM) (BAY94-9343) Adenocarcinoma Solid tumors, with pemetrexed and cisplatin Advanced malignancies (Japan) Ovarian cancer, with doxorubicin Solid tumors with hepatic/renal impairment ECG & drug interaction (with itraconazole) BI-836845 BI IGF-1 Metastatic breast cancer CRPC + enzalutamide Solid tumors, Japanese patients EGFR mutant NSCLC BHQ880 Novartis DKK-1 MM (renal insufficiency) Smoldering MM Bimagrumab Novartis ActRIIB Hip fracture surgery (BYM338) Sarcopenia (dose-ranging) Sarcopenia (withdrawal extension study) BPS804 Mereo/Novartis Sclerostin Osteoporosis Hypophosphatasia (HPP) Osteogenesis Imperfecta

Program Partner Target Indication Phase 1 Phase 2 Phase 3 CNTO3157 Janssen/J&J Asthma Safety/Pharmacokintic CNTO6785 Janssen/J&J COPD Rheumatoid Arthritis LFG316 Novartis C5 Age-related geographic atrophy (tesidolumab) Geographic atrophy (combo with CLG561) Panuveitis Paroxysmal nocturnal hemoglobinuria Transplant Associated Microangiopathy (TAM) Kidney Transplantation LJM716 Novartis HER3 ESCC (combo with BYL719) (elgemtumab) HER2+ cancer (combo BYL719 & trastuzumab) HER2+ cancer, combo with trastuzumab Tarextumab Oncomed/GSK Notch 2 Small cell lung cancer (Pinnacle) (OMP-59R5) Solid tumors Utomilumab Pfizer 4-1BB JAVELIN Medley (PF-05082566) Solid tumors, NHL (+rituximab) Solid tumors, with PD-1i MK-3475 Advanced solid tumors, with mogamulizumab Solid tumors, with PF04518600 (OX-40) VAY736 Novartis BAFF-R Pemphigus vulgaris Primary Sjögren‘s syndrome Rheumatoid Arthritis BAY1093884 Bayer TFPI Bleeding disorders 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 NOV-11 Novartis n.d. Blood disorders Vantictumab Oncomed/Bayer Fzd 7 Metastatc breast cancer (OMP-18R5) Pancreatic cancer (combo) NSCL

Guselkumab  A HuCAL antibody specific for IL-23, does not bind IL-12  IL-23 blockade inhibits production of multiple cytokines  Being developed in psoriasis and psoriatic arthritis

Current Status  Six Phase 3 clinical trials ongoing  First Phase 3 data expected in 2016  Anticipated filing in 2016

Clinical Data  Highest levels of durable skin clearance with less intensive dosing regimens vs. anti-IL-17 class  Potential for similar safety profile vs. long-term blockade of IL-12 + IL-23 with STELARA®

 Potential for long-term, drug-free efficacy PASI: Psoriasis Area and Severity Index

Anetumab Ravtansine  ADC comprising − HuCAL anti-mesothelin G1 antibody conjugated to − potent maytansinoid tubulin inhibitor DM4  In development for mesothelioma & other solid cancers Pre-clinic  Anetumab ravtansine potently inhibited growth of human mesothelioma models in vivo Phase 1  Anetumab ravtansine 6.5 mg/kg IV Q3W was well tolerated and showed efficacy in patients with previously treated mesothelioma Phase 2  Started Q1, 2016  Second-line, malignant pleural mesothelioma  Estimated enrollment 210

Antibody-drug conjugate anti-tumor therapy (A) General mechanism of action Data courtesy of Bayer Healthcare (B) Structure of anetumab ravtansine

Bimagrumab Guselkumab sIBM Psoriasis (VOYAGE 2) Guselkumab Guselkumab Guselkumab Psoriasis (VOYAGE 1) Psoriasis (NAVIGATE) Pustular/Erythrodermic Psoriasis PHASE 3 Anetumab Ravtansine LJM716 Mesothelioma (MPM) ESCC (+ BYL719) Guselkumab BI-836845 MOR103/GSK3196165 Psoriatic Arthritis Metastatic breast cancer Osteoarthritis LJM716 BI-836845 MOR103/GSK3196165 ESCC (+ BYL716) CRPC (+ enzalutamide) RA MOR202 Bimagrumab MOR202 Multiple Myeloma Hip fracture surgery Multiple Myeloma (+LEN/POM)

PHASE 2 MOR208 Bimagrumab MOR208 CLL (IIT) Sarcopenia (dose ranging) DLBCL (+ lenalidomide) MOR208 LFG316 Tarextumab NHL Panuveitis Small cell lung cancer VAY736 LFG316 VAY736 Pemphigus Vulgaris GA (+ CLG561) Primary Sjögren‘s Syndrome (PD)

Anetumab Ravtansine LJM716 + pemetrexed & cisplatin + BYL716 + trastuzumab Anetumab Ravtansine MOR106 Ovarian cancer (+ doxorubicin) Inflammation Anetumab Ravtansine MOR209 Hepatic/renal impairment Prostate cancer Anetumab Ravtansine BAY-1093884 PF-05082566 Advanced malignancies (JP) Bleeding disorders NHL/solid tumors (+ rituximab) PHASE 1 Gantenerumab BI-836845 PF-05082566 Safety, Tolerability, & PK EGFR mutant NSCLC Solid tumors (+ MK-3475) LJM716 LFG316 Vantictumab + trastuzumab Kidney Transplantation NSCLC & Pancreatic Cancer 2016 2017 Based on published information and MorphoSys estimates Partnered Discovery Programs MOR Programs Outlicensed programs © MorphoSys AG, Company Update - August 2016 15 Financial Guidance 2016

Guidance in EUR million 2015A H1 2016 2016 Group Revenues 106.2 24.3 47 to 52 Proprietary R&D Expenses 56.6 28.3 76 to 83 (incl. Technology Development) EBIT 17.2 -19.2 -58 to -68

Cash, cash equivalents & marketable securities 298.4 279.7 as well as other short-term and long-term financial assets

Bimagrumab sIBM Data from pivotal trial and regulatory filing expected Guselkumab Psoriasis Data from 3 pivotal trials and regulatory filing expected MOR208 Phase 2 lenalidomide combo trial L-MIND starts Phase 2 bendamustine combo trial B-MIND: DLBCL − Safety evaluation to start mid 2016 − Pivotal study planned for 2017 CLL Phase 2 idelalisib combo trial in planning MOR202 MM Updated data from phase 1/2a trial at ASCO 2016 Continuation of phase 1 trial under amended protocol, MOR209 Prostate cancer clinical data in 2017 MOR106 Inflammation Start of phase 1 with Galapagos in H1 2016 MOR107 Fibrosis Start of phase 1 in Q4 2016 MOR103 Osteoarthritis Start of phase 1b/2a in osteoarthritis of the hand RA Data from the phase 2b in RA in 2017 Pipeline Up to 5 new program starts Around 5 clinical milestones

MOR103/GSK3196165 % EULAR good/moderate response  HuCAL antibody specific for GM-CSF at 4 weeks: Rapid onset of action  GM-CSF is important in every step of macrophage 80 Phase Ib/IIa study, n=96 production and infiltration in the tissues 60  Good magnitude of effect with fast onset of action and 40 long duration post treatment 20 % EULAR response  Effect size appears similar to or greater than anti-TNF 0  Targeting the macrophage in early RA Placebo 0.3 mg/kg 1.0 mg/kg 1.5 mg/kg  Potential for early use to induce remission Week 4 Week 6 Week 8 Indications  Lead indication: Rheumatoid arthritis (RA) Behrens, et al. Ann Rheum Dis. 2015;74:1058-64  Potential for disease modification & analgesic activity in hand osteoarthritis (HOA) Current Status  BAROQUE (RA phase 2b) ongoing  Initial clinical read-out 2016  Phase 2 in hand osteoarthritis to start in 2016

Co-development Agreement with Emergent BioSolutions  Phase 1 clinical trial in mCRPC patients was started in March of 2015

Restructured Agreement with Emergent BioSolutions  Adjustment of dosing regimen and administration  Reduction of MorphoSys’s cost sharing and reduced milestone payments

Clinical development will continue in 2016 under an adapted clinical development plan.

Trial Phase Patients Prim. Compl. Primary Outcome Measures A Study of Guselkumab in the 3 841 09/2015 • The percentage of participants with an Investigator's Global Treatment of Participants With Active, Assessment (IGA) score of 0 or 1 comparing the guselkumab group Moderate to Severe Plaque-Type not and the placebo group Psoriasis (VOYAGE 1) recruiting • The percentage of participants with a Psoriasis Area and Severity Index (PASI) 90 Response comparing the guselkumab group and the placebo group A Study of Guselkumab in the 3 998 05/2016 • Percentage of participants with an Investigator's Global Treatment of Participants With Active, Assessment (IGA) score of 0 or 1 comparing the guselkumab group Moderate to Severe Plaque-Type not and the placebo group Psoriasis With Randomized recruiting • Percentage of participants with a Psoriasis Area and Severity Index Withdrawal and Re-treatment (PASI) 90 Response comparing the guselkumab group and the (VOYAGE 2) placebo group A Study of Guselkumab in 3 876 05/2016 • The number of visits at which participants achieve an Participants With Moderate to Active, Investigator's Global Assessment (IGA) response of 0 or 1 and at Severe Plaque-type Psoriasis and not least a 2 grade improvement (from Week 16) among randomized an Inadequate Response to recruiting participants with an inadequate (IGA≥2) response to ustekinumab Ustekinumab (NAVIGATE) at Week 16 An Efficacy and Safety Study of 3 20 01/2017 • Percentage of Participants with Treatment Success at Week 16 CNTO1959 (Guselkumab) in the Recruiting Treatment of Participants With Generalized Pustular Psoriasis or Erythrodermic Psoriasis An Efficacy and Safety of 3 225 01/2018 • Change From Baseline in Palmo-Plantar Area and Severity Index Guselkumab in Participants With Recruiting (PPPASI) Total Score at Week 16 Palmoplantar Pustulosis An Efficacy and Safety of CNTO 3 226 09/2018 • Number of Participants who Achieve an Investigator's Global 1959 (Guselkumab) in Participants Recruiting Assessment (IGA) Score of 0 or 1 With Moderate to Severe Plaque- • Number of Participants who Achieve Psoriasis Area and Severity type Psoriasis Index (PASI) 90 Response Efficacy and Safety Study of 2 150 07/2017 • Percentage of Participants who Achieve an American College of Guselkumab in the Treatment of Recruiting Rheumatology (ACR) 20 Response at Week 24 Participants With Active Psoriatic Arthritis (PsA)

Institution Contact

Baader Helvea Bruno Bulic

Bryan Garnier Mickael Chane-Du

Commerzbank Daniel Wendorff

Deutsche Bank Gunnar Romer

Edison Maxim Jacobs

Goldman Sachs Keyur Parekh

Independent Research GmbH Bernhard Weininger

J.P. Morgan Cazenove James Gordon

Kempen & Co. Anastasia Karpova

Landesbank Baden-Württemberg Timo Kürschner

Oddo Seydler Igor Kim

www.morphosys.com

Dr. Claudia Gutjahr-Löser Head of Corporate Communications & IR Phone +49 (0)89 / 899 27-404 Fax +49 (0)89 / 899 27-5404 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.