Company Update August 27, 2013

Commerzbank – Sector Conference Week

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.

Two Major Alliances for Proprietary Antibodies  Alliance with Celgene for co-development & co-promotion of MOR202  Successful out-licensing of MOR103 to GSK

Pipeline Progress  21 programs in clinical development

Strong Financial Position  Recurring cash-flows  Sale of AbD, GSK & Celgene deals strengthen balance sheet

Program Partner Target Indication Discovery Preclinic Phase 1 Phase 2 Phase 3 Gantenerumab Roche Amyloid-ß Alzheimer’s Disease MOR103 Rheumatoid Arthritis GSK GM-CSF (2 programs) Multiple Sclerosis Guselkumab (CNTO1959) Psoriasis Janssen/J&J IL23p19 (2 programs) Rheumatoid Arthritis BHQ880 Novartis DKK-1 Cancer Bimagrumab (BYM338) Novartis ActRIIB Musculoskeletal NOV – 3 Novartis - not discl. LFG316 Novartis C5 Ophthalmology OMP-59R5 OncoMed/GSK Notch 2 Cancer MOR208 - CD19 CLL, NHL, ALL MOR202 Celgene/MOR CD38 Multiple Myeloma BAY94-9343 Bayer Healthcare Mesothelin (ADC) Cancer BI – 1 BI - not discl. CNTO3157 Janssen/J&J - Asthma CNTO – 5 Janssen/J&J - Inflammation VAY736 Novartis BAFF-R Inflammation LJM716 Novartis HER3 Cancer Vantictumab (OMP-18R5) OncoMed/Bayer Fzd 7 Cancer PFE – 1 Pfizer - Cancer NOV - 7 Novartis - Ophthalmology

22 Programs Various Partners - Various Indications

Various Partners 74 Partnered Programs 38 Programs - Various Indications 3 Proprietary Pr. 7 MOR Programs

Large Market and Unmet Need  Revenues with approved drugs in MM exceed $2bn  Responders eventually relapse or become refractory to existing therapies MOR202  High affinity HuCAL antibody targeting CD38 Competitive Profile  Preclinical data show strong synergy in combinations of MOR202 with Velcade or Revlimid Clinical Development  Phase 1/2a clinical trial in relapsed or refractory MM patients currently ongoing Strategic Alliance with Celgene  Joint development of MOR202 globally and co-promotion in Europe

Scope  Global co-development and European co-promotion agreement

Up-front  MOR receives EUR 70.8 million

Equity  Celgene pays EUR 46.2 million for 3.4% stake in MOR at EUR 57.90 per share  53% premium to pre-announcement price

Milestones  Up to EUR 511 million in development, regulatory and sales milestones

Commercialization  Co-promotion in Europe with 50:50 profit share  Exclusive Celgene in rest-of-world, tiered double digit royalties to MOR

MOR103  Ultra-high affinity HuCAL IgG1 targeting GM-CSF  Potential for superior efficacy and better safety than current treatments  Phase 1b/2a trial in RA successfully completed  Phase 1b in MS ongoing

GSK assumes global responsibility for clinical development and commercialization of MOR103 in all indications

MorphoSys receives…  EUR 22.5 million upfront payment  Up to EUR 423 million in success-based payments  Tiered, double-digit royalties on net sales

ACR20* DAS28

70 MOR103 1 mg/kg mavrilimumab Humira 60 Orencia

Actemra 50

30 % % patients of

10 Mean from change baseline

0 Week 0 1 2 3 4 Time (weeks)

 Very fast onset of therapeutic effect  Durable response

 Clean safety profile

* Data from separate clinical studies

Large Market and Unmet Need  Large unmet medical need in NHL, CLL & ALL  Revenues with approved drugs for B cell malignancies exceed $5bn MOR208  Anti-CD19 antibody in-licensed from Xencor  CD19 expressed earlier than CD20  potential greater efficacy vs. anti-CD20s  Proprietary modification in Fc region  increased ADCC  rapid & sustained B-cell depletion  Minor modification means convenient dosing schedule, straightforward manufacturing  Blinatumomab data validate CD19 as target for B-cell malignancies

Trial Design  Phase 1, multi-center, US study in heavily pre-treated, relapsed or refractory CLL/SLL patients  Dosage 0.3 mg/kg - 12 mg/kg; days 1&4, weeks 2-8 Results  Acceptable safety profile  Responses observed in 67% of patients by physical exam  4/27 (15%) partial responses and 20/27 (74%) patients with stable disease (IWCLL 2008 criteria including CT)  Full results from trial extension expected in Q3 2013 Phase 2  Phase 2 trials in ALL and NHL ongoing  Combination therapy study in CLL being considered

22 Programs Various Partners - Various Indications

Various Partners 74 Partnered Programs 38 Programs - Various Indications 3 Proprietary Pr. 7 MOR Programs

Large Market and Unmet Need  Alzheimer’s disease is estimated to affect 25 million people worldwide  Increasing with aging population  Once symptoms for AD dementia have appeared, it may be too late to treat

Picture: Courtesy of Roche

Gantenerumab  High affinity HuCAL antibody targeting amyloid-β  Binds & breaks down amyloid-β fibrils and plaques Clinical Development

 Phase 1: gantenerumab reduces brain amyloid 3x faster than other amyloid-targeting substances  Pivotal Phase 3 study ongoing

 770 prodromal patients, 2 doses (105mg & frombaseline

225mg s.c.), placebo-controlled change Amyloid %  104 weeks on drug, with an option for an additional 2 years of treatment  Primary Endpoint: Change in the Clinical Data from Phase 1 Dementia Rating Scale Sum of Boxes (CDR-SOB) Effect of gantenerumab on amyloid load as indexed by PET  Sub-study: Change in brain amyloid over time SUVR at end of treatment assessed by PET  Interim safety analysis in 2013  Data expected 2016 Data: Courtesy of Roche

22 Programs Various Partners - Various Indications

Various Partners 74 Partnered Programs 38 Programs - Various Indications 3 Proprietary Pr. 7 MOR Programs

Bimagrumab is a HuCAL antibody against ActRIIB  Novartis received FDA breakthrough therapy designation for sporadic inclusion body myositis (sIBM)  Phase 2 study showed that bimagrumab substantially benefited patients with sIBM  Results will be presented at the American Neurological Association meeting on Oct. 14, 2013  In Phase 2 development for  Sporadic inclusion body myositis  Cancer-related cachexia  COPD-related cachexia  Sarcopenia  Mechanically ventilated patients Recently Highlighted by Novartis  “Imagine the equivalent of 8 or 10 weeks of exercise in one injection”

 Listed as a “planned filing 2016” Source: www.actionduchenne.org

22 Programs Various Partners - Various Indications

Various Partners 74 Partnered Programs 38 Programs - Various Indications 3 Proprietary Pr. 7 MOR Programs

Guselkumab is a HuCAL antibody against IL-23  Phase 2 development for psoriasis  Phase 2 study vs. Stelara in rheumatoid arthritis

Specific for IL23  Guselkumab binds the p19 sub-unit of IL-23, while Stelara binds the p40 sub-unit of IL-23 and IL-12

Highlighted at Janssen’s Last Analyst Day  Listed under “planned filings 2013 – 2017”

Sources: Jetten AM, Nucl Recept Signal, 2009

Ylanthia  Totally new antibody platform  Higher quality antibodies, greater diversity  faster access to superior drug leads  US patent granted January 2013 Antibodies Against GPCRs  MorphoSys secures access to stabilized GPCRs produced

by Heptares UK-based GPCR drug discovery &  MorphoSys will make and offer antibodies against GPCRs development company with proprietary StaR® technology for  Most important target class; challenging for antibodies generating stabilized receptors

Lantipeptides  MorphoSys collaborates with Lanthio Pharma to develop lantipeptide libraries for drug discovery Dutch start-up focused on lantipeptides: cyclic peptides  Preferred rights to exclusive license showing high target selectivity  MorphoSys has minority equity position and improved drug-like properties

Shareholdings by Investor Type Geographic Split of Institutional Holdings Institutional Investors - 52% USA: 58% Novartis - 6% Scandinavia: 12% Treasury Stock - 1.5% United Kingdom: 10% Management & Supervisory Boards - 2% Switzerland: 7% Retail Investors - 20% Benelux: 6% Unidentified Investors - 18.5% Germany: 5%

18,5%

52% 20%

6% 2% 1.5%

MorphoSys AG (FSE: MOR, Prime Standard, TecDAX; OTC: MPSYY) Shares issued: 23,400,632 (June 30, 2013) / Treasury stock: 339,890 (June 30, 2013)

in EUR million H1 2013 Guidance 2013*

Group Revenues 48.2 74 – 78

EBIT 17.3 2 to 6

Cash & Marketable Securities and Interest-bearing 166.3** Assignable Loans as of June 30, 2013

* Updated following MOR202 regulatory clearance (August 10, 2013) ** Cash position does not include any payments from GSK or Celgene

MOR103  Partnership for further development   Multiple sclerosis Phase 1b study continues 2013 MOR208  ALL Phase 2 study to commence   NHL Phase 2 study to commence   Clinical data from Phase 1b extension MOR202  Partnership with Celgene   MM Phase 1/2a study continues  First clinical data expected

Partnered LFG316 Bimagrumab Phase 3 AMD Ventilated Patients Phase 2 Bimagrumab Guselkumab Guselkumab Phase 1 Sarcopenia RA (vs. Stelara) Palmoplantar Postulosis BHQ880 Guselkumab NOV-3 Proprietary Smoldering MM Psoriasis Undisclosed Phase 2 LFG316 LFG316 NOV-3 Bimagrumab Phase 1 MCP AMD undisclosed Cachexia (COPD)

BHQ880 NOV-3 MOR103 MOR208 MM/Renal Insufficiency undisclosed Multiple sclerosis B-ALL

Bimagrumab MOR208 BI-1 BI-1 BAY94-9343 (ADC) Cachexia (cancer) CLL (extension arm) undisclosed undisclosed Solid Tumors Gantenerumab Guselkumab Gantenerumab CNTO3157 Liquid vs. Lyophilized Devices/Formulation AD/Japan Asthma

Guselkumab OMP-59R5 OMP-18R5 LJM716 LJM716 Psoriasis (Japan) Solid Tumors Solid Tumors Single Combo 2013 2014 Potential data events based on clinical trial design & MorphoSys estimates

www.morphosys.com

Dr. Simon Moroney Chief Executive Officer Phone +49 (0)89 / 899 27-311 Fax +49 (0)89 / 899 27-5311 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.