AI assistant
MorphoSys AG — Investor Presentation 2009
Apr 30, 2009
291_ip_2009-04-30_0a426694-1c36-4b91-b7fa-948c59482bb9.pdf
Investor Presentation
Open in viewerOpens in your device viewer
Company Update
April 2009
Safe Harbour
This presentation includes forward forward-looking statements. looking
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 comp ,g y , g g etitive 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.
Morp y hoS s at a Glance
| C o m p a n y |
A i d d i b d t t " n n e p e n e n a n o c o m p a n y y B d i i l i i h d & t t t t t " r o a a r a c e p p e n e p a r n e r e n v w u - , t d i i i d i t i p a r n e r e p r o g r a m s n v a r o u s n c a o n s T h i & h i b d t t t " e r a p e u c r e s e a r c a n o y s e g m e n s |
|
|---|---|---|
| O i i t r g a n a o n z |
H Q M i i d ( M i h ) / D b i d i i i t " a r n s r e n c s s a r e s n u u , D D ü ü l l d d f f / / D D O f d / U K & R l i h / U S A s s s s e e o o r r o r a e g x , 3 4 3 l l d i d " e m p o y e e s w o r w e |
|
| L i d t s e |
F k f S k E E h h T D A X t t " r a n r o c c c a a n n g g e e e c u x x , 1 A D R L l " e v e |
|
| T h l e c n o o g y |
C C f f L L d d i i i i H H A A L L l l t t t t " e a n g p r o p r e a r y u p a o r m , S & d i d t t t t t t " r o n g n s p e p a e n e s a e u u |
|
| F i i l n a n c a s |
P P f f i i b b l l b l h t t t t " r r o o a a e e s r o n g a a n c e s e e , |
Financial Strength in the Downturn
- Strong balance sheet with > € 130 million in cash
- Operational cash flow in 2008 of approximately € 29 million
- Secure revenues 2009 – 2017 in amount of > € 400 million
- Milestone & royalty potential >> € 1 billion
HuCAL stands for Human Combinatorial Antibody Library
Modular gene design & construction
- Antibodies are fully human
- Modular gene construction enables systematic optimization of antibody lead candidates f h th ti li ti for eactherapeutic application
- Proprietary phage-based CysDisplay screening system
- Proprietary AutoCAL system for high throughput
- HuCAL PLATINUM launched in December 2008
HuCAL PLATINUMBrighter than GOLD
| G O L D |
P L A T I N U M |
|
|---|---|---|
| L i b i r a r y s z e |
1 2 M d r |
4 5 M d r |
| U d l i d b t n e r n g a a a s e y |
1 9 9 7 |
2 0 0 8 |
| f f D D i i i i t t i i l l t t d d t t i i b b d d i i v e r s y o s o a e a n o e s |
1 x |
2 5 x |
| A f f i i i t n e s |
1 x |
4 x |
| P d i t r o c o n u |
1 x |
3 x |
HUCAL - Commercial Success Story
- More than 50 active therapeutic programs
- More than 1,000 custom research antibody projects concluded
- HuCAL GOLD has generated more than € 200 million in revenues in the form of license and success-based payments and research services
- Royalties on HuCAL GOLD-based products still to come
Robust Intellectual Propy y ert y Protected b Core Patent Families
- HuCAL Library Design and Use (~2016 expiry)
- 5 US Patents
- 2 EP Patents (several EU states)
- 2 AU Patents
- Pending applications: CA EP JP US
- TRInucleotide Mutagenesis (JHU excl. license) (~2013 expiry)
- 1 US Patent; 1 EP and 1 JP patent; pending in CA
- Di lfid Di l ( Disulfide Display (C Di l ys sp ay) ( 2020 i ) ) (~2020 expiry)
- 1 US and 1 EP Patent
- Pending applications: AU CA EP IL JP NO US
- Technology Development (HuCAL PLATINUM®)
- Several applications pending
- Co-exclusive access to various Dyax biologics patent families
- Patent applications for antibody drug candidates
- Patent filings and inlicensed patents for proprietary candidates
Business Segments
Value Througg p h Strong Partnerships
| 2 0 0 7 |
2 0 0 8 |
2 0 0 9 |
2 0 1 0 |
2 0 1 1 |
2 0 1 2 |
|
|---|---|---|---|---|---|---|
| N i t o v a r s |
||||||
| A l l t s e a s |
||||||
| P f i e r z |
||||||
| S h i i o n o g |
||||||
| S h i P l h c e r n g o u g - |
||||||
| D i i h i S k a c a n y o |
||||||
| & C M k e r c o |
||||||
| B h i I l h i o e r n g e r n g e e m |
||||||
| O d n c o m e |
C i d t t t o m m e e r m |
|||||
| E l i L i l l y |
O t i l p o n a |
|||||
| R h o c e |
E t i 2 0 0 8 x e n s o n s |
|||||
| B S S h h i i a e r c e r n g y |
||||||
| C t e n o c o r |
O i n g o n |
i b d t g a n o p y |
r o g r a m s |
|||
| P h r o c o n |
¾58 active partnered therapeutic antibody programs
¾ E t d d t hi i 2008 id ti f th 15 dditi l Extended partnerships in 2008 provide options for more than 15 additional programs
Current Product Pipeline: 62 Programs Ongoing
| N a m e |
P t a r n e r |
i i I d t n c a o n |
i D s c o e r v y |
i i P l r e c n c |
P h 1 a s e |
P h a s e |
2 P h 3 a s e |
M k t a r e |
|---|---|---|---|---|---|---|---|---|
| G t b a n e n e r u m a ( ) R 1 4 5 0 |
R h o c e |
's A l h i z e m e r D i s e a s e |
||||||
| Q B H 8 8 0 |
N t i o v a r s |
C a n c e r |
||||||
| d. n. |
C t e n o c o r |
/ I l m m u n o o g y C a n c e r |
5 P 8 t a r n e r e |
d P r o g r a m s |
||||
| 3 1 P t d a r n e r e P r o g r a m s |
V i a r o u s |
* V i a r o u s |
||||||
| 2 3 P t d a r n e r e P r o g r a m s |
V i a r o u s |
* V i a r o u s |
||||||
| M O R 1 0 3 |
- | R h t i d e m a o u A t h i t i r r s |
||||||
| M O R 2 0 2 |
- | C a n c e r |
3 P i t r o p r e a |
P r y r o g r a m s |
||||
| M O R 2 0 3 |
- | C a n c e r |
||||||
| d. n. |
M h S / o r p o s y N i t o a r s v |
d. n. |
1 P D r e- e v. |
P r o g r a m |
* Includes cancer, inflammatory, autoimmune, infectious, musculoskeletal & central nervous system diseases
Partnered Therap g eutic Programs: Structure
Partnership yp p g s: Typical Terms per Program
Partnered HuCAL Antibodies in Clinic1. Roche's Alzheimer Program
- Gantenerumab (R1450)
- HuCAL I g y G1 antibod
- Targeting amyloidβ
- Binds to Aβ peptides
- Dep y ol ymerizes agg g re gated Aβ
- Crosses blood-brain barrier in transgenic mouse, decreasing cerebral Aβ burden
- Two Phase 1 studies
- Single dose arm completed
- Multi p g gg le ascendin g dose arm no lon ger recruitin g
- Mild-to-moderate Alzheimer's patients
- Randomized, double-blind
- Antibody p behaves as ex pected
Partnered HuCAL Antibodies in Clinic2. Novartis's Cancer Program
BHQ880
- HuCAL IgG1 antibody
- Targeting DKK-1
- Overexpression of DKK-1 by myeloma cells may upset the normal balance b t e ween ost bl t eo as s an d ost lt eocasts
- DKK-1 may play a role in preventing osteolytic bone disease in multiple myeloma patients
- Phase 1 study is ongoing in the US
- P li i l t di t th h th i Precli nical studies support the hypothesis that BHQ880 promotes bone formation and thereby inhibits tumor-induced osteolytic disease
- A phase 1/2 combination study in combination with Zometa/Reclast in relapsed or refractory myeloma patients h t t d i F b 2009has starte in ebruary
Partnered HuCAL Antibodies in Clinic3. Centocor's Cancer & Inflammation Program
- HuCAL-derived fully human antibody in the therapeutic area of oncology
- Phase 1 trial in oncology was started in June 2007, is ongoing
- In November 2008, a phase 2 study in an additional indication (immunology) was started
- IND filing for phase 2 study triggered a milestone payment to MorphoSys
Partnered Business: Projected HuCAL Drugs on the Market
Source: MorphoSys internal statistics & Tufts Centre for the Study of Drug Development
Pip gy eline: Strategy
Propy p rietary Product Pipeline: Four Programs Ongoing
| N a m e |
P t a r n e r |
I d i i t n c a o n |
D i s c o v e r y |
P l i i r e c n c |
P h 1 a s e |
P h 2 a s e |
P h 3 a s e |
M k t a r e |
|---|---|---|---|---|---|---|---|---|
| M O R 1 0 3 |
- | R h t i d e u m a o A t h i t i r r s |
||||||
| O 2 0 2 M R |
- | C a n c e r |
3 P i t r o p r e a r y |
P r o g r a m s |
||||
| O 2 0 3 M R |
- | C a n c e r |
||||||
| d. n. |
M h S / o r p o y s N i t o a r s v |
d. n. |
P D P 1 r e- e v. |
r o g r a m |
- 4 proprietary programs are currently ongoing, another target was already selected
- Focus on inflammation & cancer
- Target sources: Dedicated target scouts, codevelopment (e.g. Galapagos) & in-licensing
- Rigorous target selection process target
- Detailed scientific evaluation (e.g. target biology)
- Medical need, therapeutic potential, developability, etc.
- IP: FTO and patentability
-
Commercial: Market potential and competition
-
MOR103, a fully human HuCAL antibody targeting GM-CSF
- GM-CSF plays a central role in inflammation and auto CSF auto-immunity immunity
- MOR103 blocks binding of GM-CSF to its receptor with pM affinity
- Primary indication: Rheumatoid arthritis
- Commercial opportunity: Anti-TNF therapies Enbrel, Remicade, Humira are successful biologic products for treating RA, but still under 25% of RA patients are adequately treated
- Promising scientific and preclinical data
- Successful completion of phase 1 in healthy volunteers (favorable safety profile after 5 cohorts led to trial trial-extension; in total 7 cohorts extension; total, with 9 volunteers each, were treated)
- Data support development of GM-CSF mAb therapy in different inflammatory diseases (rheumatoid arthritis multiple sclerosis) and arthritis, and lung diseases (COPD, asthma)
MOR103IP and Outlook 2009
Patent applications covering key features of the MOR103
Outlook 2009:
ANTIBODY
Final results from phase 1 in healthy volunteers in Q2/2009
Broad patent protection for MOR103 in the US, the largest RA market:
program Exclusive License
WO 2006122797
- Start of phase 1b/2a study in RA patients in H2 2009
- Decision on second indication, based on efficacy in disease models in 2009
U.S. 7,455,836
key uses of
GM-CSF
antibodies against
MOR202Proprietary Cancer Program
- MOR202, a fully human HuCAL antibody, targeting CD38, a 45 kDa ectoenzyme heavily over-expressed in 95% of MM celllines and some leukemia lines
- Function: Induces cell-killing by ADCC, CDC & apoptosis
- Primary indication: Multiple myeloma (MM) indication: (MM)
- Commercial opportunity
- 10 % of hematological cancers / 1% of all cancers / 2% of cancer deaths
- No curative therapies
- Median survival 24 – 30 months, all patients eventually relapse
Outlook 2009:
- Further evaluation in animal models of multiple myeloma
- Start of non non-clinical safety study to support clinical testing clinical
- Start of preclinical efficacy studies in second indication
- Production and release of mAb material for animal safety testing and in preparation for phase 1/2a clinical testing in 2010
Additional Prop y rietaryActivities
Novartis
- Nomination of first pre-development program
- Novartis funds joint efforts until the program reachf lesormal pre-cli i l d l t linical development
- Option for MorphoSys to enter a formal co-development up to 50%
Galapagos
- Access Galapagos's proven target discovery capabilities and disease know-how
- Access novel antibody g tar ets in bone & joint disease with a high unmet medical need
- Complement MOR's development efforts in inflammation and arthritis
Propy p rietary Product Pipeline: Projected Status Year-End 2009
| N a m e |
P t a r n e r |
I d i i t n c a o n |
D i s c o v e r y |
P l i i r e c n c |
P h 1 a s e |
P h 2 a s e |
P h 3 a s e |
M k t a r e |
|---|---|---|---|---|---|---|---|---|
| R h t i d e u m a o A h i i t t r r s |
||||||||
| O 1 0 3 M R |
- | R i t e s p r a o r y S M |
||||||
| M O R 2 0 2 |
- | C a n c e r |
||||||
| M O R 2 0 3 |
- | C a n c e r |
U t 7 p o |
P i t r o p r e a r y |
||||
| O M R 2 0 5 |
- | C a n c e r |
P r o g r a m |
s | ||||
| O M R x x x |
- | d. n. |
||||||
| O M R x x x |
- | d. n. |
||||||
| M O R x x x |
- | d. n. |
||||||
| d. n. |
S / M h o r p o y s N t i o v a r s |
d. n. |
P D 1 r e- e |
P r o g r a m v. |
Establish a rich proprietary pipeline based on proven HuCAL technology proprietary based HuCAL technology
Number of Partnered and Proprietary Clinical Compounds at Year-End 9
Clinical Antibody Pipeline is Future Value Driver is Future
Business Segments
AbD SerotecBusiness and Outlook
AbD SerotecHighlights & Challenges
- First HuCAL antibody now marketed in diagnostics kit by partner Phadia
- C ti ith th 20e.g. NIH Cooperation with more than diagnostics customers
- Introduction of more than 5,000 new , products to catalog
- Appointment of Dieter Feger from Abbott Diagnostics to head the unit
Highlights Challenges
- Profitable General market slowdown for research antibodies
- Research funding doesn't grow,
- Weak USD and GBP compared to Euro
- Write-down on UK property (Poole Real p p y( Estate)
FinancialsProfit & Loss Statement (Group)
FinancialsCondensed Balance Sheets (Group)
| M o r p |
h S G o y s r o u p |
A | b D S t e g m e n |
||||
|---|---|---|---|---|---|---|---|
| I I E E U U R R i i l l l l i i n m o n s |
2 0 0 9 E * |
2 0 0 8 A |
I E U R i l l i n m o n s |
2 0 0 9 E * |
2 0 0 8 A |
||
| T l G t o a r o u p R e v e n u e s |
8 0 8 5 – |
7 1 6 |
A b D |
2 0 ~ |
1 8 2 |
||
| G O i t r o u p p e r a n g f i P t r o |
8 1 1 – |
1 6 4 |
i A b D O t p e r a n g P f i M i t r o a r g n |
2 % |
|||
| i i T l R & D t t t t o a p r o p r e a r n e s m e n y v |
S M h G o r p o s r o p y u |
||||||
| i i E U R 1 8 2 0 l l m o n – M O R 1 0 3 / M O R 2 0 2 D i s c o v e r y p r o g r a m s |
S b " c c e s s a s u - i l t a p p p p r o m a e x P i R t " r o p r e a r y 1 8 E U R t E U o O l k t o o u f A i i 1 0 " m n g o r t h g r o w f M i t i " a n a n p r o i l i p p e n e |
d t e p a m e n s y w E U R 1 0 i l l i m o y y & D d i l l s p e n w 2 0 R i l l i m o n % % 2 0 a n n u a – i t b i l i t h i l a y w e s , * Es t im |
i l l t t a m o n o u n d b l t o e o u l r e v e n u e t t h i r e n g e n n g te d b a nu m e rs |
Shareholder Structure
| C t o r p o r a e |
R f € 8 0 i l l i € 8 5 i l l i e v e n u e s o m o n m o n • – O f f € € t i i t 8 i l l i 1 1 i l l i p e r a n g p r o o m o n m o n • – |
|---|---|
| P d t a r n e r e D i s c o e r v y |
2 4 I N D s • – 2 0 t t n e p r o g r a m s a r s w • |
| P i R & D t r o p r e a r y |
M O R 1 0 3 P h 1 d & f h 2 R A i l t t t t a s e a a s a r o p a s e r a : • U i & i f l i t 5 t p o n e p r o g r a m s n c a n c e r n a m m a o n w • |
| A b D |
R f € 2 0 i l l i e e n e s o a p p r o m o n v u x • f P i t i t l t 2 0 0 8 l l r o m a r g n a e a s o n e v e • |
Future Value Creation
Appendix
| R t e e n e o v u S M h o r p o s y |
L d k d l, i i " a n m a r e a c o m p r s n g € 4 4 0 0 0 0 i d f d i ( b l ) t t m m c o m m e n n g s e e e o ƒ u w € 2 0 i i l ( b b i l i i h d ) 5 t t t t > ƒ m n m e s o n e s p r o a y -w e g e a s s e s s m e n D t i l d l t i ƒ o e s n o n c u e r o y a e s N d d i i l i i i b d % t t t t t, t t 7 o a o n a e q n n e e s s m m e e n n e o n c r r e n ƒ u y v v y u |
|---|---|
| C i d t t o m m e F d i u n n g |
€ A 4 0 0 1 0 " p p r o x m o v e r y e a r s A h l f ( € 2 0 0 ) i h l l i f l i l i i f f t t t p p r o a m n e c n o o g c e n s e e e s p s n e r n a a o n e e o r ƒ x y u z H C A L i i i d b l d i i t t t t u c o m p r s n g c o n n g e n o u e g s u c c e s s p a y m e n , f ( € ) f f S A h l 2 0 0 i h d i t t M h ƒ p p r o x a m n r e s e a r c u n n g o r e a m a o r p o y s |
| T e r m |
1 0 i t h N N t t i i h i t i t " y y e e a a r r s s w o o v v a a r r s s a v n g o p o n s o : , E d 1 2 t t x e n o y e a r s ƒ T i f i f i h l l t t 7 t t t t e r m n a e a e r e a r s c e r a n e c n o o g g o a s a r e n o m e ƒ y y |
| M i l & t e s o n e s R l i t o a e s y |
O l l " n a p r o g r a m s |
| C C d d l l t o e v e o p m e n - |
S S h h d d & & f f i i ( ( l l i i d d i i l l ) ) d d l l d d t t " a r e c o s s p r o s s n g s c a e o n c o e e o p e p r o g r a m s v - |
Management Board
Dr. Simon E. Moroney, CEO
Dr. Moroney is one of MorphoSys's co-founders. He studied chemistry in his native New Zealand, and was a Commonwealth mmonwealth Scholar to the University niversityof Oxford, where he completed mpleteda D. Phil. in 1 D. Phil. in 1984. Subseque Subsequently he was an Associate in the Harvard Medical School, Boston, USA, and an employee of ImmunoGen Inc. Dr. Moroney has held positions at the University of Cambridge, UK, the University of British Columbia, Canada, and the ETH in Zurich, Switzerland. In 2002 he was awarded the German Cross of the Order of Merit by German President Johannes Rau.
Mr Dave Lemus CFOMr. Lemus.
Mr. Lemus joined the Company in 1998, and took MorphoSys public in 1999. Mr. Lemus joined MorphoSys from Roche, where he worked from 1993-1998, and last served as Controller and Operations Manager of 90 pharmaceutical markets. Before this time, he served as Group Treasurer of Lindt & Sprüngli in Zurich, Switzerland, and prior to this, worked in treasury management for Electrolux AB in various countries. Mr. Lemus holds a B.S. degree from the University of Maryland, a M.S. degree from the MIT, and is a Certified Public Accountant (CPA) in the USA.
Dr. Arndt Schottelius, CDO
Dr. Schottelius joined MorphoSys from Genentech Inc., San Francisco, where he served as Medical Director, Immunology Development. Prior to his position at Genentech, Dr. Schottelius held science and management positions in gyp p , gp immunology research at Berlex Biosciences, USA, and Schering , Germany. After medical studies in Germany, UK and Switzerland Dr. Schottelius received his PhD and MD degrees from the Albert-Ludwigs-University, Freiburg, Germany. Subsequently he practiced medicine as a resident physician at the Charité University Hospital, Berlin.
D M li S ll CSODr. Marlies Sproll,
Dr. Marlies Sproll joined MorphoSys in October 2000 as R&D department head. In November 2005, Dr. Sproll was promoted to CSO. Before joining MorphoSys, Dr. Sproll worked for seven years at the Vienna research facility of Boehringer Ingelheim. From 1988 to 1993, Dr. Sproll was lab leader at Merck KGaA in Darmstadt, Germany, where she was involved in the preclinical development of therapeutic antibodies. Dr. Sproll has a Ph.D. from the Max of Planck Institute in Tübingen, Germany, and was awarded a Doctor of Natural Science by the University of Stuttgart.
Sup y ervisoryBoard
Dr. Gerald MöllerChairmanManaging Director of HBM BioVentures, Former President Boehringer-Mannheim
Prof. Dr. Jürgen Drews Vice ChairmanFormer Director Global Research, F.Hoffmann-La Roche
Dr. Walter A. BlättlerFormer Executive Vice President, C O, ect c téde a ce,Former CFO, Aventis , Science and Technology, ImmunoGen
Dr. Daniel CamusCFO, Electricité de France,
Dr. Metin Colpan S i Di t QIAGEN Supervisory Director, Ch i Zi H ldi Li it d Former CEO and Founder, QIAGEN
Dr. Geoffrey Vernon Chairman, Ziggus Holding LimitedFormer Executive Director Rothschild Asset Management
MorphoSys AG – Company Update – April 2009 © MorphoSys AG MorphoSys Page 38
Corporate Calendar 2009
- April 28, 2009 Q1 2009 Results April 28 2009 28, LBBW German Mid & Small Cap Conference, London, UK May 13, 2009 AGM, Munich
- May 18 - 19, 2009 Deutsche Bank's 34th Annual Health Care ConferenceBoston, USA
- May 23-24, 2009 German & Austrian Corporate Conference Frankfurt, Germany
- June 17 17-18,2009 Jefferies 3rd Annual Healthcare Conference Healthcare New York, USA
- July 29, 2009 Q2 2009 Results
| C o |
i v e r n |
A g |
l n a |
t y s s |
|---|---|---|---|---|
| i i I t t t n s o n u |
C t t o n a c |
|---|---|
| B b B k e r e n e r g a n |
M M A A l l d d R R h h s e x a n r a o c e |
| C b k o m m e r z a n |
M D i l W d f f r. a n e e n o r |
| C d i S i t r e s s e u |
D Y i A l- W k l r. a s r a e e |
| D h B k t e s c e a n u |
M H l B l r. o g e r m u |
| D Z B k a n |
D E l K r. m a r r a s u |
| S E i t I t i t t i l i q u n e n s u o n a e r v c e s |
D M t i P i k r. a r n o s s e n e |
| L d b k B d W ü t t b a n e s a n a e n- r e m e r g |
D H F h r. a n n s r o n m e y e r |
| S M I D A R h e s e a r c |
S M T h h i l r. o m a s c e s s e |
| C N d o m u r a o e |
G D W d r. a r y a a n e r s |
| S l. O h i a p p e n e m |
D C h i t i P t r. r s a n e e r |
| S G S i i t e c r e s u |
M R d l h B r. o p e e s s e r e u v |
| W W L L B B A G t t e s |
D D C C l l i i T T h h r. o r n e a o m a s |
Thank You.
www.morphosys.com
Dave Lemus
Chief Financial Officer
Phone +49 (0)89 / 899 27-439 ( ) ( ) Fax +49 (0)89 / 899 27-5439 Email [email protected]
Dr. Claudia Gutjahr-Löser Head of Corporate Communications & IR
Phone +49 (0)89 / 899 27-122 Fax +49 (0)89 / 899 27-5122 Email [email protected]