MorphoSys AG — Investor Presentation 2008

Sep 30, 2008

ESN's Antibody Seminar

Stockholm – September 30, 2008

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.

Company	 An independent antibody company  Therapeutic & research antibody segments  Listed at Frankfurt Stock Exchange, TecDAX
Technology	 Leading, proprietary HuCAL antibody platform
Pipeline	 56 HuCAL therapeutic programs ongoing  Multiple partners and indications
P&L	 Profitable business built on strong partnerships  Over EUR 400m future revenues assured  Lucrative milestone & royalty upside
Balance Sheet	 Over EUR 125m cash  Intended for acquisitions to drive growth

HuCAL: Leading Antibody Technology

HuCAL stands for Human Combinatorial Antibody Library

• Antibodies are fully human
• Modular gene construction enables systematic optimization of antibody lead candidates for each therapeutic application
• Proprietary phage-based CysDisplay screening system
• Proprietary AutoCAL system for high throughput

HuCAL Libraries: GOLD & PLATINUM

HuCAL GOLD

• Introduced 2000
• Library size over 12 billion
• Fab format
• Modular gene library
• Frameworks & CDRs reflect human repertoire
• Underpinned by strong patent portfolio

HuCAL PLATINUM

• Next generation
• Currently under construction
• Complete new sequence alignment using latest human genome IgG data
• Shorter selection timelines via earlier access to IgG
• Bigger pools of antibody leads

Two Business Segments

Therapeutic Antibody Programs With Leading Pharma & Biotech Companies

54 Active Partnered Therapeutic Programmes

Active Collaborations: Timelines

Novartis Deal: Financial Details

HIOPPhOSUS
-------------------	--

Revenue to MorphoSys		Landmark deal, comprising  €400m committed funding (see below)  >€250m in milestones (probability-weighted assessment)  Does not include royalties  No additional equity investment, beyond current 7%
Committed Funding		Approx. €400m over 10 years  Approx. half (€200m) in technology license fees plus internalization fee for HuCAL, comprising contingent double digit success payment  Approx. half (€200m) in research funding for team at MorphoSys
Term		10 years, with Novartis having options to:  Extend to 12 years  Terminate after 7 years if certain technology goals are not met
Milestones & Royalties		On all programs
Co-development		Shared costs & profits (sliding scale) on co-developed programs

Partnered Therapeutic Programs: Exclusivity by Target

• Partner provides the target molecule; MorphoSys generates optimized lead antibody
• Partners receive an exclusive license based on target, first-come, first served

Partnerships: Typical Terms per Program

Name	Partner	Indication	Discovery	Pre-clinic	Phase 1	Phase 2	Phase 3	Market
R1450	Roche	Alzheimer's Disease
BHQ880	Novartis	Cancer
Not disclosed	Centocor	Cancer
1D09C3 (on hold)	GPC	Cancer
MOR103	-	Rheumatoid Arthritis
MOR202	-	Cancer
Not disclosed	MorphoSys/ Novartis	Not disclosed
27 Partnered Programs	Various	Various*
22 Partnered Programs	Various	Various*

* Includes cancer, inflammatory, autoimmune, infectious, musculoskeletal & central nervous system diseases

Partnered Business: Projected HuCAL Drugs on the Market

Projection of committed partnered programs:

Estimated number of marketed HuCAL drugs: > 17

Source: MorphoSys internal statistics & Tufts Centre for the Study of Drug Development

Roche's HuCAL Alzheimer Program

Drug

• R1450, a HuCAL IgG1 antibody targeting amyloid-β
• Function
• R1450…
  • binds Aβ at N-terminus and an internal sequence
  • sequesters Aβ peptide
  • depolymerises aggregated Aβ
  • crosses blood-brain barrier in transgenic mouse, decreasing levels of cerebral Aβ

Development

• Phase 1 ongoing in Denmark, Netherlands, Sweden, UK & Israel
• Single dose and dose escalation arms
• Mild-to-moderate Alzheimer's patients
• Randomized, double-blind
• Both studies with up to 100 patients
• Wyeth/Elan results encouraging in ApoE4-negative patients

MOR103 Proprietary Inflammation Program

Drug

• MOR103, a fully human IgG1 HuCAL antibody that binds GM-CSF with very high affinity
• Primary indication
• Rheumatoid arthritis, potential in asthma, COPD…
• Clinical Development
• Phase I study ongoing in Holland
• Approx. 50 healthy volunteers in a randomized, double-blind, placebo-controlled, single-ascending dose trial
• Safety, tolerability & pharmacokinetics
• Q4 2008: Publish pre-clinical data
• Q1 2009: Report Phase I results

Strong IP Position

• Exclusive license to US patent application covering treatment of inflammation with inhibitors of GM-CSF
• Patent applications on the MOR103 antibody family

MOR202: Proprietary Cancer Program

Drug

MOR202, a fully human IgG1 HuCAL antibody that binds CD38, a marker on multiple myeloma and some leukemia cell-lines

Primary indication

Multiple myeloma

Function

Induces cell-killing by ADCC, CDC & apoptosis

Development Timeline

• Q1 2008: Development candidate selected
• Q1 2008: Process development commenced
• Q1 Q4 2009: Toxicology & safety
• Q1 2010: submit CTA
• Q2 2010: Commence Phase I

Two Business Segments

AbD Serotec: The Business

Page 18 | Company Update | September 2008 © MorphoSys AG

AbD Serotec: Emerging Opportunities

Therapeutic Segment Synergies

• Case Study: Genesis R&D Inc.
• March 2006
• Genesis orders custom HuCAL research antibodies against FGFR-5
• October 2007
• Genesis gets preliminary therapeutic license
• MorphoSys gets access to scientific data plus option to co-develop

Diagnostics

• Growing part of HuCAL business
• HuCAL enables very precise solutions to diagnostics problems
• July 2008
• HuCAL antibodies marketed in kits from Phadia
• Over 20 other diagnostics collaborations ongoing
• Upside via royalties and/or supply agreements

Guidance 2008

In EUR millions	2008E*	2007A
Total Group Revenues	73 – 77	62
AbD	~ 20	19.6
Group Operating Profit	9 – 11	7.0
AbD Operating Profit Margin	5 – 10%	-

• Revenues in the Therapeutic Antibodies segment include successbased payments of EUR 10 million
• Spend on proprietary product & technology development of EUR 13 million, the second successive 100% annual increase

		Key Financials
--	--	----------------	--	--

Revenues	33.3	28.6
Total Operating Expenses	25.3	25.1
Profit from Operations	8.0	3.5
Net Profit	6.3	2.0
Earnings per Share (diluted) in EUR	0.85	0.29
Cash, Cash Equivalents & Marketable Securities (June 30, 2008)	126.4
Shares Issued at June 30, 2008		7,426,918
Novartis		~ 7 %
AstraZeneca		~ 5 %

Free float ~ 88 %

In EUR millions H1 2008 H1 2007

Strong Operating Cashflow

Forthcoming Events

Thank You.

www.morphosys.com

Dr. Simon Moroney

Chief Executive Officer

Phone +49 (0)89 / 899 27-311 Fax +49 (0)89 / 899 27-5311 Email moroney@morphosys.com

Dr. Claudia Gutjahr-Löser

Head of Corp. Comm. & IR

Phone +49 (0)89 / 899 27-122 Fax +49 (0)89 / 899 27-5122 Email gutjahr@morphosys.com

HuCAL®, HuCAL GOLD®, CysDisplay®, RapMAT® and AutoCAL® are registered trademarks, HuCAL PLATINUMTM is a trademark of MorphoSys AG.