MorphoSys AG — Investor Presentation 2007

Jun 20, 2007

10th German Corporate Conference

Frankfurt – June 20, 2007

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 Prospectus.

The MorphoSys Group Today

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N f E l o o m p o e e s y	A 3 0 0 " p p r o x
R e v e n u e s	( ) P f i b l € 3 i l l i 2 0 0 6 5 " t r o a e o n m o n
	G ( ) h 8 % 2 2 % i 2 0 0 t 5 5 " r o w o r g a n c o v e r

MorphoSys Businesses and Strategy

HuCAL: World Leading Antibody Technology

• Antibodies can be…systematically optimized to match therapeutic application
• Antibodies are…fully human
• High throughput provides… economy of scale for research uses
• Proprietary to MorphoSys

HuCAL

(Human Combinatorial Antibody Library): A vast collection or "library" of over 12 billion human antibodies in a system that enables systematic optimization of antibody properties

Robust Intellectual Property Protected by Core Patent Families

HuCAL Library Design and Use (~2016 expiry)

• 4 US Patents
• 1 EU Patent (numerous EU states)
• 1 AU Patent
• Pending applications: CA EU JP US
• TRInucleotide Mutagenesis (JHU excl license) (~2012 expiry)
• 1 US Patent; EP upheld in amended form; pending in JP

Disulfide Display (CysDisplay) (~2020 expiry)

• 1 US Patent
• EU application in late stage prosecution
• Pending applications: AU CA EU IL JP NO US

Various Patent Applications on:

• Ancillary technologies
• Individual antibodies

Corporate Structure Mirrors Strategy

Acquisitions Prove Importance of Antibodies to Big Pharma

Therapeutic Antibody Partnerships

• Partner provides target, initiates program, brings disease-specific expertise
• Responsibilities

	O M R	P t a r n e r
L d i t e a g e n e r a o n	"	"
O i i i t t p m z a o n	"
D l t e v e o p m e n		"
M k i t a r e n g		"

• Programs exclusive on "per target" basis
• Partnerships typically multi-year, often multi-target

Therapeutic Antibody Partnerships: Typical Program Deal Terms

Long-Term, Blue-Chip Relationships

Renewals, expansions, extensions

Number of active, partnered HuCAL programs at the end of each year

Roche's Alzheimer Program

• Drug: R1450, a HuCAL antibody made & optimized at MorphoSys
• Phase 1 Trials

Trial 1

• Randomized, double-blind, multiple ascending dose study in patients
• Target sample size is <100 individuals

Trial II

• Randomized, double-blind, single dose study in patients
• Target sample size is <100 individuals

Conducted in Denmark, Netherlands, Sweden and the UK

First results expected 2008 (MorphoSys estimate)

GPC Biotech's Cancer Program

• Phase 1 Trial
• At three European sites, in patients
• Preliminary clinical phase I data showed:
  • Drug is well tolerated
  • First hints of anti-tumor activity
• GPC has communicated that completion of dose escalating study is expected shortly
• Drug has orphan status in CLL, MM, and Hodgkin's lymphoma

maximize pipeline value

Proprietary Drug Investment: The Rationale

• Pipeline weakness is making pharma desperate for new drug candidates
• Recent deals show that pharma is prepared to value an IND-stage drug at \$100 million

C i o m p a n e s	U f t t p r o n p a m e n y	M i l t e s o n e s
R h A l i t o c e c e o n -	U S D 5 7 m	U U S D 5 5 5 t p o m
R h P l i k o c e e o n x x -	S U D 4 0 m	S U D 1 5 0 5 5 0 m –
R h I t o c e n e r m u n e -	U S D 6 0 m	U S D 5 1 0 4 7 0 m –
f i i M d I I t e m m u n e n n y -	S U D 7 0 m	S U U D 4 3 0 t p o m
C B i U B o g e n -	S U D 3 0 m	S U U D 1 7 0 t p o m
N i S G X t o v a r s -	U S D 2 5 m	U U S D 5 0 0 t p o m
A v e r a g e	U S D 5 0 m	U U S D 5 4 0 t p o m

MorphoSys makes selective investments in proprietary drugs to

MOR103: A HuCAL Antibody for Rheumatoid Arthritis (RA)

Medical Need

RA patients adequately treated: Under 25% Non-responders to anti-TNFs: 30% Non-responders after 2 years on anti-TNF: 50% Long-term safety issues with anti-TNFs Drug Candidate HuCAL antibody vs. undisclosed target Very high affinity and expression: potential CoGS advantage Potential in other inflammatory indications

Milestones

• H2 2006: Manufacturing agreement with Crucell/DSM ;
• H2 2007: Planned filing for phase I clinical trial

MOR202: A HuCAL Antibody for Multiple Myeloma (MM)

Medical Need

• MM accounts for 10-15% of hematological & 1% of all cancers
• Few available treatment options, no curative therapies
• New agents, Velcade and Revlimid, have efficacy (nonresponders) and safety issues

Drug Candidate

• HuCAL antibodies vs. CD 38, a 45kDa glycoprotein
• Over-expressed on MM (95%) and some leukemia cell-lines
• Compelling efficacy data in vitro and in vivo (SCID mouse)
• Mechanism is ADCC plus effector cell independent

Milestones

• End 2006: Lead candidate selected;
• 2007: Define therapeutic window and effective dose level, stability study

Corporate Structure Mirrors Strategy

AbD Serotec: The Business

AbD Serotec: Gaining Scale

I E U R i l l i n m o n s	2 0 0 7
R e v e n u e s
S T h i A i b d i t t t e g m e n e r a p e u c n o e s	/ 2 3 f l t t o o a r e v e n u e s	3 4 7	2 9 1
S A b D t e g m e n	/ f l 1 3 t t o o a r e e n e s v u	1 8 3	4 3
T l R t o a e v e n u e s	6 0 6 5 -	5 3 0	3 3 5 *
i T l O E t t o a p e r a n g x p e n s e s	-	4 6 9	2 7 3
f f P i O i t t r o r o m p e r a o n s	7 1 0 -	6 2 *	6 2

Guidance

Financial Growth

2 0 0 6	5 2 0 0
3 4 7	2 9 1
1 8 3	4 3
5 3 0	3 3 5 *
4 6 9

* Differences due to rounding

Profit & Loss Statement (Group) Q1 2007

Cash position today > EUR 100 million (Capital Increase in May '07)

* Differences due to rounding

In EUR millions

Securities

Assets

Liabilities

Shareholder Structure

• Institutional Shareholders
• Novartis
• AstraZeneca
• Management & Supervisory Boards
• Retail & Others

f S N b h I d M 3 1 2 0 0 7 t u m e r o a r e s s s u e a a y ,	7 3 7 6 6 4 5 , ,
N i " t o v a r s	7 % ~
A Z " t s r a e n e c a	5 % ~
F f l t r e e o a	8 8 % ~
S ( ) I i i l h h l d h l d b l d d i 2 0 0 6 " t t t n s u o n a a r e o e r s r o u g y o u e u r n g	4 0 % ~
R i l & O h " t t e a e r s	4 4 % ~
M & S i B d " t a n a g e m e n u p e r v s o r y o a r s	2 5 % ~

Group

• Revenue EUR 60 65 million (2/3 therapeutics: 1/3 research products)
• Operating profit EUR 7 10 million

Therapeutic Segment

• MOR103 IND
• With partners:
• 1-3 INDs
• 50 therapeutic programs by year-end
• New / expanded partnerships

AbD Serotec

• Over 20% revenue growth
• EBIT margin: 5 - 10%
• New marketing alliance to drive uptake of HuCAL in research community

Thank You.

www.morphosys.com

HuCAL®, HuCAL GOLD® and CysDisplay® are registered trademarks of MorphoSys AG, RapMATTM and AutoCALTM are trademarks of MorphoSys AG