Barclays Global Healthcare Conference Company Update March 12, 2014 © MorphoSys - March 2014 Safe Harbour 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 - March 2014 2 Introduction to MorphoSys 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 © MorphoSys - March 2014 3 The MorphoSys Pipeline – Overview 20 Clinical Programs 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 © MorphoSys - March 2014 4 INNOVATIVE PRODUCT PIPELINE © MorphoSys - March 2014 5 The MorphoSys Proprietary Portfolio 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 © MorphoSys - March 2014 6 Two Programs Partnered in Lucrative Deals with Celgene and GSK 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 © MorphoSys - March 2014 7 MOR103 Novel Mode of Action in Rheumatoid Arthritis 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 Mean change 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 © MorphoSys - March 2014 8 MOR202 A Novel Antibody for Multiple Myeloma 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 © MorphoSys - March 2014 9 MOR208 A Novel Antibody to Treat B-cell Malignancies 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 © MorphoSys - March 2014 10 Partnered Clinical Pipeline (I) 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 © MorphoSys - March 2014 11 Partnered Clinical Pipeline (II) 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 © MorphoSys - March 2014 12 Bimagrumab (BYM338) A Novartis Musculoskeletal Program 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 © MorphoSys - March 2014 13 Gantenerumab: In Development by Roche for Prodromal Alzheimer’s Disease DRUG HuCAL antibody against amyloid-ß Binds N-terminus and middle of peptide DIFFERENTIATION Binds/disrupts amyloid plaque and oligomers; binds peptide only weakly from baseline Gantenerumab reduces brain amyloid 3x faster than Amyloid change % 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 pre- disposed patients Data: Courtesy of Roche © MorphoSys - March 2014 14 Guselkumab (CNTO1959) A Janssen Anti-Inflammatory Program 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 © MorphoSys - March 2014 15 Highlighted Programs All Have Blockbuster Potential 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. © MorphoSys - March 2014 16 FINANCIALS © MorphoSys - March 2014 17 Shareholdings 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