MorphoSys AG — Investor Presentation 2011

Mar 2, 2011

Company Update

March 2011

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  Martinsried/Germany, with sites in UK & US  Frankfurt Stock Exchange – TecDAX
Business	 Therapeutic antibodies  Research & diagnostic antibodies (AbD Serotec)
Technology	 Leading, proprietary HuCAL platform  New technology from Sloning acquisition
Pipeline	 Over 70 therapeutic antibody programs  Strong alliances with pharma companies
Financials	 Sustainable profitability funds proprietary R&D  10-year, \$1bn strategic alliance with Novartis  Cash balance in excess of \$170m

PROPRIETARY DEVELOPMENT

• Own programs taken by MorphoSys to clinical proof-of-concept
• Lucrative potential upside

PARTNERED DISCOVERY

• Multiple therapeutic antibody products based on MorphoSys's technology
• Generate strong flow of milestones & royalties

AbD SEROTEC

• Growing roster of diagnostic partnerships developing novel tests
• Research antibody catalogue business

INNOVATIVE, PROPRIETARY ANTIBODY TECHNOLOGY

• Commitment to delivering superior antibodies
• Next generation MAbs to be more efficacious, able to hit new targets and lower cost

Growing Significance of the MorphoSys Pipeline

Clinical Programs Total Programs

MorphoSys Has Built One of the Industry´s Broadest Antibody Pipelines

MOR103 A Novel Anti-Inflammatory Antibody

The Target

• GM-CSF, which plays a central role in activating granulocytes and macrophages
• Extensive evidence implicating GM-CSF in the inflammatory cascade

The Drug

• A HuCAL IgG1 antibody that neutralizes human GM-CSF
• High potency due to very high target affinity (KD = 0.4 pM)
• Subcutaneous PK study in healthy volunteers planned for 2011

Intellectual Property

• Exclusive license to a US patent covering antibodies against GM-CSF for the treatment of chronic inflammatory conditions
• Patent filings on antibody

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MOR103 Clinical Development

In Rheumatoid Arthritis

• European phase 1b/2a trial ongoing to assess safety, signs of efficacy and immunogenicity of MOR103 in patients with active RA
• 135 patients with active RA, randomized, double-blind, placebo controlled
• Four ascending doses i.v. 0.3, 1.0 and 1.5 mg/kg or placebo with stable regimen of concomitant RA therapy
• Objectives:
• Primary objectives: Adverse event rate and safety profile
• Secondary objectives: DAS28, ACR & EULAR28, cytokines, MRI (synovitis & bone edema), PK, immunogenicity & patient-reported outcomes up to 16 weeks
• Final phase 1b/2a RA data expected in H1 2012

In Multiple Sclerosis

Phase 1b safety study in MS patients being prepared

MOR208 A Novel Anti-Cancer Antibody

The Target

CD19, a pan B-cell marker

The Drug

• Humanized, affinity optimized anti-CD19 antibody, comprising a proprietary modification that enhances effector cell recruitment
• Exclusive license from Xencor

Selected Pre-clinical Observations

• Enhanced affinity for Fc receptor leads to rapid and sustained B-cell depletion
• Higher ADCC than both Rituxan & Campath against all lymphoma & leukemia cell lines tested (see selected data in figure)

0.01 0.1 0 10 100 %ADCC 30 20 10 0 Namalwa 60 40 20 0 Wac3CD5 SU-DHL-6 ³⁰ mAb (ng/mL) B-NHL Burkitt's Lymphoma CLL

MOR208 Clinical Development

Clinical Trial Design

• Multi-centre, open-label, multi-dose, single-arm phase 1, dose-escalation study in USA
• Patients with chronic lymphocytic leukemia, who have not responded to or have become refractory to previous therapies
• Objectives:
• Primary objectives: Investigate maximum tolerated dose, safety and tolerability, pharmacokinetics and immunogenicity
• Secondary objectives: Assess preliminary anti-tumor activity
• Xencor funds phase 1 trial from \$13 m up-front payment
• Final data expected in 2012

MOR202 A Novel Antibody for Multiple Myeloma

The Target

CD38, a key target present on the vast majority of multiple myeloma cells

The Drug

A high affinity, fully human HuCAL antibody

Clinical Trial Design and Development Timeline

• Multicentre, open-label, dose-escalation study (EU)
• Patients with relapsed/refractory multiple myeloma; failure of at least 2 prior therapies
• Objectives: Investigate maximum tolerated dose, safety and tolerability, pharmacokinetics and immunogenicity; assessment of preliminary activity
• Final data expected in 2013

Partnered Programs Phase 2 Clinical Development

Partner & Program	Disease	Status
Novartis BHQ880	Osteolytic bone disease	 HuCAL antibody targeting DKK-1  Clinical trials in multiple myeloma patients  Early data show stimulation of bone formation
Novartis n.d.	n.d.	 June 2009: Start of phase 1/2  Clinical proof of concept achieved
Centocor Ortho Biotech CNTO888	Oncology & immunology	 HuCAL antibody targeting MCP-1  MCP-1 regulates prostate cancer growth and metastasis  2 oncology trials and 1 IPF trial ongoing
Roche Gantenerumab	Alzheimer's disease	 HuCAL antibody targeting amyloid-β  Amyloid-β implicated as causal factor in AD  Phase 2 study in patients with prodromal AD initiated in Q4 2010

Partnered Programs Phase 1 Clinical Development

Partner & Program	Disease	Status
Centocor Ortho Biotech CNTO1959	Psoriasis	 June 2009: Start of phase 1  Study completed in Q4 2010
Bayer Healthcare BAY79-4620	Oncology	 October 2009: Start of phase 1 trial  Antibody-drug conjugate targeting CA IX
Centocor Ortho Biotech CNTO3157	Asthma	 June 2010: Start of phase 1
Novartis – n.d.	Musculoskeletal diseases	 July 2010: Start of phase 1
Novartis – n.d.	Ophthalmology	 August 2010: Start of phase 1
Novartis – n.d.	Inflammation	 December 2010: Filing for phase 1
Centocor – n.d.	Inflammation/ Autoimmune	 December 2010: Filing for phase 1
Boehringer Ingelheim – n.d.	n.d.	 December 2010: Filing for phase 1
Pfizer – n.d.	Oncology	 December 2010: Filing for phase 1
Oncomed – OMP-59R5	Oncology	 December 2010: Filing for phase 1

AbD Serotec Complements Therapeutic Segment of the Business

Antibodies for research and diagnostic markets Cash-generative since 2007 Research Antibodies Catalogue comprising 15,000+ products Custom antibody generation using HuCAL Stable and recurring cash flows Diagnostic Antibodies Using proprietary technologies to deliver superior antibodies for diagnostic uses Future upside via royalties Potential synergies with therapeutic side of business Market \$ 7bn \$2bn

Diagnostic HuCAL Antibody Pipeline Gains Visibility

Technology Offers Exciting Growth Opportunities in Diagnostics

	AbD Serotec is working with over 20 diagnostics companies

Application	Technology Feature
Poorly served targets	 HuCAL provides antibodies where traditional approaches fail
New biomarkers	 HuCAL offers best possible selectivity & sensitivity
Clinical monitoring	 HuCAL is very well-suited to making anti-idiotypic antibodies
Thermal stability	 In vitro method HuCAL offers key advantages compared to in vivo antibody generation
Diagnostic standards	 HuCAL offers precise and indefinite reproducibility

MorphoSys Transforms Antibody Technologies in Response to Customer Needs

A Unique Platform for Generating Optimized, Fully Human Antibodies

Patent Protection on Platform Expanded Significantly

Patent lifetime on key platform technologies

* Patent applications filed

FY2010: Operating Result

in million €	2010	2009	Change
Revenues	87.0	81.0	7%
Cost of Goods Sold	7.3	6.7	9%
Research and Development Expenses	46.9	39.0	20%
Sales, General & Administrative Expenses	23.2	23.9	(3%)
Total Operating Expenses	77.4	69.6	11%
Other Operating Income	0.2	0.1	100%
Profit from Operations*	9.8	11.4	(14%)

* Differences due to rounding

in million €	2010	2009
Partnered Discovery
Segment Revenues	66.3	61.7
Operating Expenses	23.6	22.1
Segment Result	42.7	39.6
Proprietary Development
Segment Revenues	1.8	1.0
Operating Expenses	26.5	19.3
Other Operating Income	0.2	0
Segment Result	(24.5)	(18.3)
AbD Serotec
Segment Revenues	20.2	19.3
Operating Expenses	18.9	18.4
Other Operating Income	0.02	0.1
Segment Result*	1.2	1.0

* Differences due to rounding

Guidance: +20% Revenue Growth, Continued Investment

in million €	2011	2010
Group Revenues	105 - 110	87.0
Investment in Proprietary R&D	40 – 45	26.5
Group Operating Profit	10 – 13	9.8
in million €	2011	2010
AbD Serotec Segment Revenues	22 - 23	20.2
AbD Serotec Profit Margin	~ 4%	6%

A Rich Potential News-flow in 2011

H1 2011

• Commence Phase 1 study of MOR202 in multiple myeloma
• Release MOR202 pre-clinical data
• New partner INDs
• First diagnostic kit based on a HuCAL antibody comes to market
• Further technology announcements

H2 2011

• Complete enrollment in MOR103 Phase 1b/2a RA study
• Commence Phase 1b MS study of MOR103
• Clinical data from trial of CNTO888 in oncology*
• Clinical data from trial of CNTO1959 in psoriasis*
• Clinical data from trial of CNTO3157 in asthma*
• New partner INDs
• New deal(s) based on Slonomics technology

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 Dr. Claudia Gutjahr-Löser Head of Corporate Comm. & IR

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

HuCAL®, HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay®, RapMAT® and AutoCAL® are registered trademarks of MorphoSys AG, arYla™ is a trademark of MorphoSys AG