MorphoSys AG Meet The Team · MorphoSys AG Meet The Team The Yale Club, New York June 25, 2019
Transcript of MorphoSys AG Meet The Team · MorphoSys AG Meet The Team The Yale Club, New York June 25, 2019
MorphoSys AG
Meet The Team
The Yale Club, New York
June 25, 2019
2© MorphoSys AG | Meet the Team | June 25, 2019
This presentation includes forward-looking statements.
This communication contains certain forward-looking statements concerning the MorphoSys group of companies, including its financial guidance for 2019,
the commencement, timing and results of clinical trials and release of clinical data both in respect of its proprietary product candidates and of product
candidates of its collaborators, the development of commercial capabilities, in particular with respect to tafasitamab (MOR208) and the transition of
MorphoSys to a fully integrated biopharmaceutical company, interaction with regulators, including the potential approval of MorphoSys’s current or future
drug candidates, including discussions with the FDA regarding the potential approval to market tafasitamab, the expected time of launch of tafasitamab,
and expected royalty and milestone payments in connection with MorphoSys’s collaborations. The forward-looking statements contained herein represent
the judgment of MorphoSys as of the date of this release and involve known and unknown risks and uncertainties, which might cause the actual results,
financial condition and liquidity, performance or achievements of MorphoSys, or industry results, to be materially different from any historic or future
results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if
MorphoSys’s results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such
forward-looking statements, they may not be predictive of results or developments in future periods. Among the factors that may result in differences are
that MorphoSys’s expectations regarding its 2019 results of operations may be incorrect, MorphoSys’s expectations regarding its development programs
may be incorrect, the inherent uncertainties associated with competitive developments, clinical trial and product development activities and regulatory
approval requirements (including that MorphoSys may fail to obtain regulatory approval for tafasitamab and that data from MorphoSys’s ongoing clinical
research programs may not support registration or further development of its product candidates due to safety, efficacy or other reasons), MorphoSys’s
reliance on collaborations with third parties, estimating the commercial potential of its development programs and other risks indicated in the risk factors
included in MorphoSys’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. Given these uncertainties, the
reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of
publication of this document. MorphoSys expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any
change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or that may
affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or
regulation.
The compounds discussed in this slide presentation are investigational products being developed by MorphoSys and its partners and are not currently
approved by the U.S. Food and Drug Administration (FDA), European Medicine Agency (EMA) or any other regulatory authority (except for
guselkumab/Tremfya®). Any shown cross-trial comparison between MorphoSys-own investigational products and literature data have significant
limitations. Such data comparisons have been prepared at the request of, and for the sole benefit of, the investor community.
3© MorphoSys AG | Meet the Team | June 25, 2019
AGENDA
David Trexler: U.S. Commercialization2.
Nuwan Kurukulasuriya: Medical Affairs Outreach 3.
Simon Moroney: Company Overview1.
Jens Holstein: Financial Strategy
Malte Peters: L-MIND Primary Analysis Data
Q&A Session
4.
5.
6.
4© MorphoSys AG | Meet the Team | June 25, 2019
Engineering the Medicines of Tomorrow
Simon Moroney, Chief Executive Officer
Meet the Team | June 25, 2019
5© MorphoSys AG | Meet the Team | June 25, 2019
This presentation includes forward-looking statements.
This communication contains certain forward-looking statements concerning the MorphoSys group of companies, including its financial guidance for 2019,
the commencement, timing and results of clinical trials and release of clinical data both in respect of its proprietary product candidates and of product
candidates of its collaborators, the development of commercial capabilities, in particular with respect to tafasitamab (MOR208) and the transition of
MorphoSys to a fully integrated biopharmaceutical company, interaction with regulators, including the potential approval of MorphoSys’s current or future
drug candidates, including discussions with the FDA regarding the potential approval to market tafasitamab, the expected time of launch of tafasitamab,
and expected royalty and milestone payments in connection with MorphoSys’s collaborations. The forward-looking statements contained herein represent
the judgment of MorphoSys as of the date of this release and involve known and unknown risks and uncertainties, which might cause the actual results,
financial condition and liquidity, performance or achievements of MorphoSys, or industry results, to be materially different from any historic or future
results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if
MorphoSys’s results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such
forward-looking statements, they may not be predictive of results or developments in future periods. Among the factors that may result in differences are
that MorphoSys’s expectations regarding its 2019 results of operations may be incorrect, MorphoSys’s expectations regarding its development programs
may be incorrect, the inherent uncertainties associated with competitive developments, clinical trial and product development activities and regulatory
approval requirements (including that MorphoSys may fail to obtain regulatory approval for tafasitamab and that data from MorphoSys’s ongoing clinical
research programs may not support registration or further development of its product candidates due to safety, efficacy or other reasons), MorphoSys’s
reliance on collaborations with third parties, estimating the commercial potential of its development programs and other risks indicated in the risk factors
included in MorphoSys’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. Given these uncertainties, the
reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of
publication of this document. MorphoSys expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any
change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or that may
affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or
regulation.
The compounds discussed in this slide presentation are investigational products being developed by MorphoSys and its partners and are not currently
approved by the U.S. Food and Drug Administration (FDA), European Medicine Agency (EMA) or any other regulatory authority (except for
guselkumab/Tremfya®). Any shown cross-trial comparison between MorphoSys-own investigational products and literature data have significant
limitations. Such data comparisons have been prepared at the request of, and for the sole benefit of, the investor community.
6
Effective on September 1, 2019
© MorphoSys AG | Meet the Team | June 25, 2019
New CEO Dr. Jean-Paul Kress
Over 20 years in the pharmaceutical and
biotechnology industry, with a strong track record
of commercial and operational leadership in North
America and Europe
Prior senior management roles include
Syntimmune: Chief Executive Officer
Biogen: Executive Vice President and Head of
Global Therapeutic Operations
Sanofi: Senior Vice President, Head of North
America at Sanofi Genzyme
Sanofi Pasteur MSD: President, CEO
Gilead: General Manager, France, and member
of the operating committee
Eli Lilly and Abbvie: Product management
M.D. degree from Faculté Necker-Enfants Malades
(Paris)
Graduate and post-graduate degrees in
pharmacology and immunology from École Normale
Supérieure (Paris)
7
Develop the medicines of tomorrow to improve the lives of patients
suffering from serious diseases
© MorphoSys AG | Meet the Team | June 25, 2019
Our Mission
8© MorphoSys AG | Meet the Team | June 25, 2019
We are at an inflection point on the way to becoming
a fully integrated biopharmaceutical company
9
Leveraging our clinical assets to anchor a new growth trajectory
© MorphoSys AG | Meet the Team | June 25, 2019
Strong Clinical Pipeline
Segment revenues
2018
Partnered Discovery
23 clinical candidates
25 programs in preclinic
58 programs in discovery
Valu
e
Business transformation
~€54 million
~€23 million
Segment revenues
2018
Proprietary Development
5 clinical candidates
1 program in preclinic
6 programs in discovery
Tremfya®
MOR106
MOR103
MOR202
tafasitamab
10
An ENFORCER™ antibody
© MorphoSys AG | Meet the Team | June 25, 2019
Tafasitamab
tafasitamab
ENFORCER™
Enhanced Format for Cancer Eradication
Fc-engineered to address:
Increased recruitment of effector cells
Enhanced elimination of cancer cells
11
NHL – Non-Hodgkin lymphoma CLL – Chronic lymphotic leukemia ALL – Acute lymphoblastic leukemia
Assessing the clinical potential of our key proprietary asset
© MorphoSys AG | Meet the Team | June 25, 2019
Tafasitamab Value Proposition
Chemo-free regimen aiming to improve
quality of life and outcome for patients
43% complete response rate
21.7 months duration of response
Data support overall survival outcome
ENFORCER™ goal to drive effective immune-mediated killing of malignant B cells
Demonstrated activity with lenalidomide
Single agent activity shown in other
forms of NHL, CLL & B-ALL
Readily combined with other agents
Opportunity to develop broadly
DLBCL Other B cell malignancies
12
Addressing different treatment approaches with L-MIND and B-MIND
© MorphoSys AG | Meet the Team | June 25, 2019
Tafasitamab Clinical Trials in DLBCL
Tafasitamab + bendamustine
vs.
rituximab + bendamustine
Tafasitamab + lenalidomide
vs.
virtual lenalidomide-only
L-MIND B-MIND
Phase 2, open-label, single-arm trial
Virtual lenalidomide-only comparator arm
Compelling primary analysis data
Study ongoing with responding patients
Chemo-free regimen
Phase 2/3, randomized, multicenter trial
Biomarker subgroup: ~50% of patients
Futility analysis H2 2019
1. All-comers pass futility
Final data Q1 2020 (330 patients)
2. Only subgroup passes futility
Final data Q1 2021 (450 patients)
3. All-comers and subgroup fail futility
Study is futile
Different
combinations
Combination with an
immuno-modulatorCombination with a
chemotherapeutic
Different
modes of action
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U.S. Commercial Strategy
Create U.S. hub to accelerate market uptake
Regulatory Strategy Framework
Pursue regulatory approval for tafasitamab in U.S. and EU
Setting a trajectory for greater value creation
© MorphoSys AG | Meet the Team | June 25, 2019
Corporate Strategy
Clinical Development Direction
Seize tafasitamab opportunities to drive sustainable growth
Partnering
Maximize the value of our key asset
14
MorphoSys US Inc. located at Boston Harbor
© MorphoSys AG | Meet the Team | June 25, 2019
MorphoSys U.S. Subsidiary
Located in the heart of the U.S. No. 1 Life
Sciences Cluster
Highly attractive to best-in-class talent
Strategic position for direct U.S. market access
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L-MIND:
Breakthrough Therapy Designation granted in 2017
Close alignment with the FDA - minimizing risks
FDA guidance on reasonable ways forward
Planned BLA submission by end of 2019
Earliest approval mid-2020
B-MIND:
Pre-planned interim analysis in H2 2019
BLA – Biologics license agreement
Pursue regulatory approval for tafasitamab in U.S. and EU
© MorphoSys AG | Meet the Team | June 25, 2019
Regulatory Strategy
FDA progress and next steps
EMA progress and next steps
L-MIND:
First interactions with national health authorities
Submitted request for scientific advice to EMA
16
Maximizing the value of tafasitamab with the best possible deal
© MorphoSys AG | Meet the Team | June 25, 2019
Partnering Tafasitamab
Tafasitamab
Our flagship
asset
Strong interest based
on compelling clinical
data
Good chance for favorable regulatory
path in Europe – significant impact on
value of program
Focusing on exclusive
MorphoSys U.S. rights
In discussions with
interested parties
17
Key strategic directions for next wave of clinical trials
© MorphoSys AG | Meet the Team | June 25, 2019
Clinical Development Direction
Position tafasitamab in competitive environment
Seize front-line DLBCL opportunities for tafasitamab
Go broad and deepin r/r DLBCL
Initiate development in other, non-DLBCL indications
18© MorphoSys AG | Meet the Team | June 25, 2019
Summary
Well on track with our goal to transform into
a fully integrated biopharmaceutical company
MorphoSys is set to become a key player
in the oncology field in the U.S.
Driving clinical assets development to enhance
proprietary pipeline product value
SUMMARY
19© MorphoSys AG | Meet the Team | June 25, 2019
David Trexler, President MorphoSys US Inc.
Meet the Team | June 25, 2019
20© MorphoSys AG | Meet the Team | June 25, 2019
This presentation includes forward-looking statements.
This communication contains certain forward-looking statements concerning the MorphoSys group of companies, including its financial guidance for 2019,
the commencement, timing and results of clinical trials and release of clinical data both in respect of its proprietary product candidates and of product
candidates of its collaborators, the development of commercial capabilities, in particular with respect to tafasitamab (MOR208) and the transition of
MorphoSys to a fully integrated biopharmaceutical company, interaction with regulators, including the potential approval of MorphoSys’s current or future
drug candidates, including discussions with the FDA regarding the potential approval to market tafasitamab, the expected time of launch of tafasitamab,
and expected royalty and milestone payments in connection with MorphoSys’s collaborations. The forward-looking statements contained herein represent
the judgment of MorphoSys as of the date of this release and involve known and unknown risks and uncertainties, which might cause the actual results,
financial condition and liquidity, performance or achievements of MorphoSys, or industry results, to be materially different from any historic or future
results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if
MorphoSys’s results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such
forward-looking statements, they may not be predictive of results or developments in future periods. Among the factors that may result in differences are
that MorphoSys’s expectations regarding its 2019 results of operations may be incorrect, MorphoSys’s expectations regarding its development programs
may be incorrect, the inherent uncertainties associated with competitive developments, clinical trial and product development activities and regulatory
approval requirements (including that MorphoSys may fail to obtain regulatory approval for tafasitamab and that data from MorphoSys’s ongoing clinical
research programs may not support registration or further development of its product candidates due to safety, efficacy or other reasons), MorphoSys’s
reliance on collaborations with third parties, estimating the commercial potential of its development programs and other risks indicated in the risk factors
included in MorphoSys’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. Given these uncertainties, the
reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of
publication of this document. MorphoSys expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any
change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or that may
affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or
regulation.
The compounds discussed in this slide presentation are investigational products being developed by MorphoSys and its partners and are not currently
approved by the U.S. Food and Drug Administration (FDA), European Medicine Agency (EMA) or any other regulatory authority (except for
guselkumab/Tremfya®). Any shown cross-trial comparison between MorphoSys-own investigational products and literature data have significant
limitations. Such data comparisons have been prepared at the request of, and for the sole benefit of, the investor community.
21
Strong history of top level performance
© MorphoSys AG | Meet the Team | June 25, 2019
Commercial Leadership
David Trexler
President of MorphoSys US Inc.
33 year track record in building commercial capabilities
for international pharmaceutical companies
Prior positions as SVP Oncology Commercial for EMD
Serono/Merck KGaA building first commercial oncology
footprint in the U.S. and launching the first PD-L1
antibody for mMCC. Other positions, including Eisai Inc,
being responsible for commercial strategies, supporting
Aloxi®, Dacogen®, Halaven® and Lenvima®
Deep knowledge of marketing, sales, market access
environment and business development
Focus on build-up of MorphoSys’s commercial capabilities
in preparation for the planned tafasitamab launch
22© MorphoSys AG | Meet the Team | June 25, 2019
We are building a strategic presence in
the world‘s most important pharmaceutical market
23
1) IQVIA MIDAS May 2018 2) IQVIA patient survey June 2018
Accelerated market uptake from U.S. hub
© MorphoSys AG | Meet the Team | June 25, 2019
U.S. Commercialization Strategy
U.S. Market Size1)
64% of sales of all new medicines
launched between 2012-2017
48% of global sales (~$853 bn) in 2017
Large Oncology Network2)
Top 10 U.S. states contain 56% of all
DLBCL patients and 55% of all treaters
24
Building the tafasitamab value chain between the U.S. and Europe
© MorphoSys AG | Meet the Team | June 25, 2019
Leveraging Synergies
Contributing strong commercial expertise
U.S. Head of Market Access and Policy
U.S. Marketing and Sales
U.S. Medical Affairs
Munich
Boston
MorphoSys AG
MorphoSys US Inc.
Contributing strong technology expertise
Global Head of Supply Chain Management
Global Head of Regulatory
Antibody material produced in Germany
Packaging of tafasitamab planned in Europe
25
Laying a foundation for the anticipated launch of tafasitamab in the U.S.
© MorphoSys AG | Meet the Team | June 25, 2019
U.S. Commercial Strategy
Functional Commercial Structure
Filling critical positions by hiring talents with deep expertise
Targeted Market Access and Policy Approach
Securing timely and appropriate access to tafasitamab
>200
Commercial Operations Build-up
Providing an operational foundation to enable market access
Sales and Marketing Approach
Position tafasitamab as potential new standard of care
in r/r DLBCL
26
Filling critical positions by hiring talent with deep expertise
© MorphoSys AG | Meet the Team | June 25, 2019
Functional Commercial Structure
Medical Affairs
Nuwan Kurukulasuriya
Market Access and Policy
Chris Mancill
Legal
Ben Looker
Finance
Chris Krawtschuk
Commercial Operations
Krishna Kadiyala
Sales and Marketing
Stephane Berthier
President
MorphoSys US Inc.
David Trexler
27
Recruiting top talent to build a function fit for strong launch
© MorphoSys AG | Meet the Team | June 25, 2019
Top Talent
25 years experience in market access, policy,
and pricing at the global and U.S. levels
Prior positions with numerous biopharmaceutical
companies, including Amgen and EMD Serono/Merck KGaA
Proven track record of securing access for innovative
oncology products, matching the buy-and-bill, HCP-
administered profile of tafasitamab
Deep experience in oncology and hematology launches
across a large variety of indications and tumor types
Chris Mancill
Senior Vice President and Head
of Market Access and Policy
28
HCP – Health care professionals CMS – Centers for Medicare & Medicaid
Striving to enable access to tafasitamab for all eligible patients
© MorphoSys AG | Meet the Team | June 25, 2019
Strategic Imperatives
Market Approach Policy Approach
Make tafasitamab easily available to HCPs
in community and academic settings
Ensure payer awareness through targeted pre-
approval engagement and secure CMS coding
Address barriers among HCPs to grant
timely patient access
Support appropriate patient access with financial
and other patient support resources
Brand MorphoSys as a responsible partner
in addressing policymaker’s priorities
Embed advocacy community perspectives
into the commercialization plan
Understand the pricing and reimbursement
landscape to inform launch plans
Ensure that stakeholder views are considered
in our patient access and support approach
29
Recruiting top talent to build a function fit for strong launch
© MorphoSys AG | Meet the Team | June 25, 2019
Top Talent
14 years experience in creating value with
commercial operations and advanced analytics
Prior positions in a variety of biopharmaceutical
companies, including Spectrum, Novartis and Merck
Proven track record of developing commercial strategies
for maximizing short- and long-term value of the brand
Deep experience in oncology and hematology launches
across a variety of indications and tumor types
Krishna Kadiyala
Vice President and Head of
Commercial Operations and
Innovation
30
Laying a solid operational foundation to enable market access
© MorphoSys AG | Meet the Team | June 25, 2019
Strategic Imperatives
Commercial building blocks
Enable sales and marketing to increase awareness
of tafasitamab among customers and patients
Implement cutting-edge technology and advanced
analytics to create competitive advantage
Deliver solutions to decrease barriers to adoption
Develop and continuously improve sales
management processes through innovation
Commercial Operations
Execute on roadmap for market segmentation
and sales force size and structure
Evaluate commercial technologies to enable
multiple sales and marketing touch points
Build commercial analytics function to shape
commercial strategy, life cycle management,
and resource allocation decisions
31
Recruiting top talent to build a function fit for strong launch
© MorphoSys AG | Meet the Team | June 25, 2019
Top Talent
20 years experience in global and U.S. sales & marketing
and global research & development
Prior positions at Novartis and at Janssen where being
responsible for the Imbruvica® franchise
Strong scientific and business qualifications and proven
track record of leading sales & marketing teams and cross-
functional teams
Deep expertise in oncology and hematology with more
than 15 year experience in developing, launching and
maximizing drugs
Stephane Berthier
Vice President and Head of
Sales and Marketing
32
1) Subject to approval HCP - Healthcare professionals
Establish tafasitamab as potential new standard of care in r/r DLBCL1)
© MorphoSys AG | Meet the Team | June 25, 2019
Strategic Imperatives
Sales and Marketing Approach
Support quick adoption of tafasitamab
at launch
Establish tafasitamab + lenalidomide as
potential standard of care in r/r DLBCL1)
Institute treat-to-progression in r/r DLBCL
Set up MorphoSys as a strong partner to key
oncology accounts and institutions
High performing field force communicates value of
tafasitamab and overcomes early access challenges
Tafasitamab + lenalidomide intended to allow for
convenient and long term disease control for
patients and HCPs
Tafasitamab + lenalidomide tolerability implies
potential benefit on long term treatment efficacy
Be seen by all stakeholders as a reliable
company caring for the needs of their patients
33© MorphoSys AG | Meet the Team | June 25, 2019
Summary
Building-up of an efficient organization to prepare
for a potential U.S. launch of tafasitamab
Tapping the full potential of MorphoSys by addressing
the world’s most important pharmaceutical market
Creating an environment that attracts, develops
and retains best-in-class talent
SUMMARY
34© MorphoSys AG | Meet the Team | June 25, 2019
Nuwan Kurukulasuriya, Senior Vice President Head of Global Medical Affairs
Meet the Team | June 25, 2019
35© MorphoSys AG | Meet the Team | June 25, 2019
This presentation includes forward-looking statements.
This communication contains certain forward-looking statements concerning the MorphoSys group of companies, including its financial guidance for 2019,
the commencement, timing and results of clinical trials and release of clinical data both in respect of its proprietary product candidates and of product
candidates of its collaborators, the development of commercial capabilities, in particular with respect to tafasitamab (MOR208) and the transition of
MorphoSys to a fully integrated biopharmaceutical company, interaction with regulators, including the potential approval of MorphoSys’s current or future
drug candidates, including discussions with the FDA regarding the potential approval to market tafasitamab, the expected time of launch of tafasitamab,
and expected royalty and milestone payments in connection with MorphoSys’s collaborations. The forward-looking statements contained herein represent
the judgment of MorphoSys as of the date of this release and involve known and unknown risks and uncertainties, which might cause the actual results,
financial condition and liquidity, performance or achievements of MorphoSys, or industry results, to be materially different from any historic or future
results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if
MorphoSys’s results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such
forward-looking statements, they may not be predictive of results or developments in future periods. Among the factors that may result in differences are
that MorphoSys’s expectations regarding its 2019 results of operations may be incorrect, MorphoSys’s expectations regarding its development programs
may be incorrect, the inherent uncertainties associated with competitive developments, clinical trial and product development activities and regulatory
approval requirements (including that MorphoSys may fail to obtain regulatory approval for tafasitamab and that data from MorphoSys’s ongoing clinical
research programs may not support registration or further development of its product candidates due to safety, efficacy or other reasons), MorphoSys’s
reliance on collaborations with third parties, estimating the commercial potential of its development programs and other risks indicated in the risk factors
included in MorphoSys’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. Given these uncertainties, the
reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of
publication of this document. MorphoSys expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any
change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or that may
affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or
regulation.
The compounds discussed in this slide presentation are investigational products being developed by MorphoSys and its partners and are not currently
approved by the U.S. Food and Drug Administration (FDA), European Medicine Agency (EMA) or any other regulatory authority (except for
guselkumab/Tremfya®). Any shown cross-trial comparison between MorphoSys-own investigational products and literature data have significant
limitations. Such data comparisons have been prepared at the request of, and for the sole benefit of, the investor community.
36
Executing a multi-stakeholder medical engagement strategy
© MorphoSys AG | Meet the Team | June 25, 2019
Medical Affairs
Nuwan Kurukulasuriya
Senior Vice President
Head of Global Medical Affairs
20 years of academic, medical affairs and clinical
development experience
Prior positions at Johnson & Johnson, EMD Serono/Merck
KGaA, Biogen and Shire leading medical affairs teams and
providing portfolio-wide oversight of launch strategies
As Head of Medical Research and RWE and member of
Biogen’s Global Medical Affairs Leadership Team,
co-engineered Medical-Marketing-Market Access launch
strategies; successfully launched Tecfidera®, now
generating $4bn in annual revenues
As VP Head US Medical Affairs at Shire led large teams
across multiple therapeutic areas including hematology,
oncology, immunology, neurology, ophthalmology and
rare diseases
37© MorphoSys AG | Meet the Team | June 25, 2019
We are building a strong patient-centric medical
organization as a conduit to the oncology community
38
Launching tafasitamab to become the potential new standard of care in r/r DLBCL
© MorphoSys AG | Meet the Team | June 25, 2019
Medical Affairs Strategy
Evidence-based Scientific and Value Narrative
Differentiating on long-term clinical and cost effectiveness
Launching investigator and company sponsored studies
Outreach and Awareness
Dynamic mapping, field-validation and engagement of KOLs
Dual academic medical center and community focus
>200
Informing Real World Clinical Practice
Optimized treatment sequencing within DLBCL
Improve patient outcomes
39
Multi-stakeholder, multi-channel engagement
© MorphoSys AG | Meet the Team | June 25, 2019
Communicating with Impact
40
May 2019 June 2019
ISPORASCO
EHA
ICML
Poster + Dr Johannes Dull,
L-MIND data showcase
Poster:
MOR208 + LEN
event simulation model
ICML L-MIND
platform presentation
Emphasizing clinical and cost effectiveness
© MorphoSys AG | Meet the Team | June 25, 2019
Relaying the Tafasitamab Value Story
41
Medical affairs immersive booth
Competitor and congress intelligence to inform insights
Poster and oral presentations
Multichannel social media communication campaign
Post-congress materials
for enduring resources
Pre-congress materials
+ teaser campaign
Engagement with third party channels
Leaving an impression – evolving our creative theme
Real-time reactions to data by KOLs
Connecting with customers via digital, multi-media science-campaign
Building a Runway to Launch Excellence
© MorphoSys AG | Meet the Team | June 25, 2019
42
Hematologists/oncologists, patients and caregivers are key influencers on treatment
© MorphoSys AG | Meet the Team | June 25, 2019
The DLBCL Care Community
Stakeholders Across the DLBCL Care Community
Payer
Social
worker
NurseTransplant
physician
Internal medicine
physician
Hematologist/
oncologist
Patient Caregiver
Office
managers
Pathway
developers
Patient advocacy
groups
Pro
vid
er
Pati
ent
Payer
& P
olicy
43
1) IQVIA for MorphoSys: U.S. Patient Journey, June 2018 KOL – Key opinion leader
Strategy to create awareness and establish extensive HCP and KOL network
© MorphoSys AG | Meet the Team | June 25, 2019
Targeted U.S. Medical Affairs Outreach
Top 10 States
Texas Pennsylvania
California Illinois
Florida New Jersey
New York Arizona
Ohio Michigan
Treated Patient Range # of States
≥560-2,100 10
≥370-560 9
≥210-370 11
≥70-210 10
≥1-70 12
HCP Heat Map1)
56% of treating physicians are
located in top 10 U.S. states
44
1) IQVIA for MorphoSys: U.S. Patient Journey, June 2018
Strategy to reach majority of r/r DLBCL patients1)
© MorphoSys AG | Meet the Team | June 25, 2019
Targeted U.S. Medical Affairs Outreach
50%25%0%
75%
100%
100%
25%
50%
0%
75%Num
ber
of
DLBCL
pati
ents
in t
he U
.S.
[%]
Number of hematologists/oncologists in the U.S. [%]
~1,300
hem/oncs
~2,000
hem/oncs
~2,400
hem/oncs
~1,100
hem/oncs
Focus on top ~2,400
hematologist/oncologists
covers ~75% of all DLBCL patients
45
Working toward a potential paradigm shift driven by strong clinically data
© MorphoSys AG | Meet the Team | June 25, 2019
Access Through Medical Affairs
Pre-launch scientific engagement of key opinion
and thought leaders
Best balance academic medical center vs.
community oncology engagement
Partner with advocacy groups to elevate
awareness of ongoing clinical development
Dynamic field mapping of national and regional
patient advocacy groups
Integrated HEOR evidence generation to support
tafasitamab value story
Develop budget impact model, cost efficiency
model, network meta analyses mixed treatment
comparisons and patient preference study
Together with access and policy teams plan joint
interactions with CMS, Medicare Part B, Medicare
Advantage, IDNs and other payers
Clear and easily understandable value
proposition
Providers Patients
Payers Policy
HEOR - Health Economic and Outcomes Research CMS – Centers for Medicare and Medicaid Services IDN – Integrated Delivery Network
46© MorphoSys AG | Meet the Team | June 25, 2019
Summary
Clear understanding of the DLBCL stakeholder landscape
Compelling and competitive scientific-value narrative
Strong, diverse and agile Medical Affairs organization
SUMMARY
47© MorphoSys AG | Meet the Team | June 25, 2019
Jens Holstein, Chief Financial Officer
Meet the Team | June 25, 2019
48© MorphoSys AG | Meet the Team | June 25, 2019
This presentation includes forward-looking statements.
This communication contains certain forward-looking statements concerning the MorphoSys group of companies, including its financial guidance for 2019,
the commencement, timing and results of clinical trials and release of clinical data both in respect of its proprietary product candidates and of product
candidates of its collaborators, the development of commercial capabilities, in particular with respect to tafasitamab (MOR208) and the transition of
MorphoSys to a fully integrated biopharmaceutical company, interaction with regulators, including the potential approval of MorphoSys’s current or future
drug candidates, including discussions with the FDA regarding the potential approval to market tafasitamab, the expected time of launch of tafasitamab,
and expected royalty and milestone payments in connection with MorphoSys’s collaborations. The forward-looking statements contained herein represent
the judgment of MorphoSys as of the date of this release and involve known and unknown risks and uncertainties, which might cause the actual results,
financial condition and liquidity, performance or achievements of MorphoSys, or industry results, to be materially different from any historic or future
results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if
MorphoSys’s results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such
forward-looking statements, they may not be predictive of results or developments in future periods. Among the factors that may result in differences are
that MorphoSys’s expectations regarding its 2019 results of operations may be incorrect, MorphoSys’s expectations regarding its development programs
may be incorrect, the inherent uncertainties associated with competitive developments, clinical trial and product development activities and regulatory
approval requirements (including that MorphoSys may fail to obtain regulatory approval for tafasitamab and that data from MorphoSys’s ongoing clinical
research programs may not support registration or further development of its product candidates due to safety, efficacy or other reasons), MorphoSys’s
reliance on collaborations with third parties, estimating the commercial potential of its development programs and other risks indicated in the risk factors
included in MorphoSys’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. Given these uncertainties, the
reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of
publication of this document. MorphoSys expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any
change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or that may
affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or
regulation.
The compounds discussed in this slide presentation are investigational products being developed by MorphoSys and its partners and are not currently
approved by the U.S. Food and Drug Administration (FDA), European Medicine Agency (EMA) or any other regulatory authority (except for
guselkumab/Tremfya®). Any shown cross-trial comparison between MorphoSys-own investigational products and literature data have significant
limitations. Such data comparisons have been prepared at the request of, and for the sole benefit of, the investor community.
49© MorphoSys AG | Meet the Team | June 25, 2019
Our financial strength is the basis for our new
growth trajectory
50
1) Revenues are expected to include royalty income from Tremfya® ranging from EUR 23-30 million at constant USD exchange rate.
Well positioned to execute strategy and drive value
© MorphoSys AG | Meet the Team | June 25, 2019
Key Financial Figures
In € million
FY 2018(As of March 13, 2019)
Q1 2019(As of May 7, 2019)
Guidance 2019 (As of March 13, 2019)
Group Revenues1) 76.4 13.5 43 to 501)
Proprietary R&D Expenses
(incl. Technology Development)98.3 22.6 95 to 105
EBIT -59.1 -23.6 -127 to -137
Cash position 454.7 431.2
Total ordinary shares issued as of May 31, 2019: 31,839,572
51© MorphoSys AG | Meet the Team | June 25, 2019
Financial Strategy
Solid Cash Position
Leverage increasing royalty streams and milestone
payments in the years to come
Prudent Capital Allocation
Invest in proprietary portfolio, especially tafasitamab
and U.S. commercial build-up
>200
First Proprietary Product Launch
Capture growth opportunities in global DLBCL by
intending to invest broader in tafasitamab
Prospective Cash Generation
Build on revenues from tafasitamab and partnered
product sales as well as partnering deals
€
52
Solid financial 2019 goals with further upside potential
© MorphoSys AG | Meet the Team | June 25, 2019
Solid Cash Position
€454.7m
€43 - 50m
€95 - 105m
estimated
€70 - 80m
In €
million
~€320 - €330m
53
1) In € million
Invest in proprietary portfolio and U.S. commercial build-up1)
© MorphoSys AG | Meet the Team | June 25, 2019
Prudent Capital Allocation
R&D Expenses Other Headquarter CostsTotal Costs Commercial Build-Up
Total FY 2018: €136.5m Total Q1 2019: €37.3m
106.4
23.17.0
24.7
5.57.1
54
1) Excluding potential partnering or in-licensing deal
Invest in proprietary portfolio and U.S. commercial build-up
© MorphoSys AG | Meet the Team | June 25, 2019
Strategic Investments
€454.7m
Cash YE 2018 Cash YE 20201)
Revenues Prop. R&D Commercial G&A
+ Tremfya® sales
ramping up
+ Potential
tafasitamab
sales from 2020
- Proprietary
portfolio
- Clinical
development
- Commercial
build-up U.S.
- Preparation
for EU launch
- Maintain tight
cost control
~$90-100m to build
commercial capabilities
for tafasitamab (FY2018 to 2020)
+ – – –
Available for
broadening
of tafasitamab
55
1) Combined literature and analyst estimates
Capture growth opportunities in global DLBCL market
© MorphoSys AG | Meet the Team | June 25, 2019
First Proprietary Product Launch
0
2
4
6
8
2018 2025 2027
In $
billion
Estimated Global DLBCL Market Size1)
Front-line Relapsed/refractory
~12% CAGR
56
1) Combined literature and analyst estimates (illustrative) 2) Subject to regulatory approval
Capture growth opportunities in global DLBCL market1)
© MorphoSys AG | Meet the Team | June 25, 2019
First Proprietary Product Launch
2018 2020 2027
R-CHOP
Tafasitamab
other
Potential market share in 1st line DLBCL2)
Potential market share in 2nd line DLBCL2)
Intense regimens
Tafasitamab
other
Milder regimens
57
Source: DRG Epidemiology data; Kantar Market Research (TPP testing 2018), Friedberg et al., 2011
*Depending on label
Addressable U.S. market: ~10,000 patients as of 2018
© MorphoSys AG | Meet the Team | June 25, 2019
Opportunity for Tafasitamab in r/r DLBCL
Patients treated
in 1st line (U.S.)
~31.800
~60% of all 1st line
patients cured
ASCT eligible
ASCT ineligible
~5.900
ASCT eligible
ASCT ineligible
~4.100~20%
relapsed
~20%
refractory
~10% of all 2nd line
patients cured
not treated not treated
1st Line 2nd Line 3rd+ Line
Potential
~10,000
Upside
Potential*
Upside
potential
UPDATE
58
Source: DRG Epidemiology data; Kantar Market Research (TPP testing 2018), Friedberg et al., 2011
*Depending on label
Addressable EU market: ~6,500 patients as of 2018
© MorphoSys AG | Meet the Team | June 25, 2019
Opportunity for Tafasitamab in r/r DLBCL
Patients treated
in 1st line (EU5)
~20.730
~60% of all 1st line
patients cured
ASCT eligible
ASCT ineligible
~3.820
ASCT eligible
ASCT ineligible
~2.680~20%
relapsed
~20%
refractory
~10% of all 2nd line
patients cured
not treated not treated
1st Line 2nd Line 3rd+ Line
Potential
~6.500
Upside
Potential*
Upside
potential
EU5
59
Build on revenues from own and partnered product sales
© MorphoSys AG | Meet the Team | June 25, 2019
Prospective Cash Generation
Milestones
payments and
Royalties from
Partnered Discovery
segment
Revenues
Proprietary
Development
segment
(tafasitamab)
2019 2020 2021+
Expansion
Proprietary
Development
segment
Potential for tafasitamab in further settings
(1st line DLBCL, additional indications)
Proprietary pipeline programs
and potential in-licensed projects
Vision: Adding compounds following
tafasitamab for commercialization
U.S. launch of tafasitamab in r/r DLBCL
mid-2020, subject to FDA approval
Preparation for tafasitamab EU approval
Group revenues in 2019 expected between
€43 to 50m
60© MorphoSys AG | Meet the Team | June 25, 2019
Summary
Increasing opportunities based on a significantly
growing global DLBCL market
Multiple cash flow contributions to support
broadening of tafasitamab
Solid financial position to fully explore and invest
in the value of our proprietary portfolio
SUMMARY
MorphoSys AG
Meet The Team
Short break - we will be right back
62© MorphoSys AG | Meet the Team | June 25, 2019
Malte Peters, Chief Development Officer
Meet the Team | June 25, 2019
63© MorphoSys AG | Meet the Team | June 25, 2019
This presentation includes forward-looking statements.
This communication contains certain forward-looking statements concerning the MorphoSys group of companies, including its financial guidance for 2019,
the commencement, timing and results of clinical trials and release of clinical data both in respect of its proprietary product candidates and of product
candidates of its collaborators, the development of commercial capabilities, in particular with respect to tafasitamab (MOR208) and the transition of
MorphoSys to a fully integrated biopharmaceutical company, interaction with regulators, including the potential approval of MorphoSys’s current or future
drug candidates, including discussions with the FDA regarding the potential approval to market tafasitamab, the expected time of launch of tafasitamab,
and expected royalty and milestone payments in connection with MorphoSys’s collaborations. The forward-looking statements contained herein represent
the judgment of MorphoSys as of the date of this release and involve known and unknown risks and uncertainties, which might cause the actual results,
financial condition and liquidity, performance or achievements of MorphoSys, or industry results, to be materially different from any historic or future
results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. In addition, even if
MorphoSys’s results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such
forward-looking statements, they may not be predictive of results or developments in future periods. Among the factors that may result in differences are
that MorphoSys’s expectations regarding its 2019 results of operations may be incorrect, MorphoSys’s expectations regarding its development programs
may be incorrect, the inherent uncertainties associated with competitive developments, clinical trial and product development activities and regulatory
approval requirements (including that MorphoSys may fail to obtain regulatory approval for tafasitamab and that data from MorphoSys’s ongoing clinical
research programs may not support registration or further development of its product candidates due to safety, efficacy or other reasons), MorphoSys’s
reliance on collaborations with third parties, estimating the commercial potential of its development programs and other risks indicated in the risk factors
included in MorphoSys’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. Given these uncertainties, the
reader is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of
publication of this document. MorphoSys expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any
change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or that may
affect the likelihood that actual results will differ from those set forth in the forward-looking statements, unless specifically required by law or
regulation.
The compounds discussed in this slide presentation are investigational products being developed by MorphoSys and its partners and are not currently
approved by the U.S. Food and Drug Administration (FDA), European Medicine Agency (EMA) or any other regulatory authority (except for
guselkumab/Tremfya®). Any shown cross-trial comparison between MorphoSys-own investigational products and literature data have significant
limitations. Such data comparisons have been prepared at the request of, and for the sole benefit of, the investor community.
64© MorphoSys AG | Meet the Team | June 25, 2019
We are working toward our intention to transform into a
biopharmaceutical company supported by tafasitamab data
65
Cycle 12+Cycle 1-3 Cycle 4-12
* a loading dose of MOR208 was administered on day 4 of cycle 1
#Primary refractory DLBCL was defined as no response to or progression/relapse during or within 6 months of frontline therapy
Response assessment (Cheson 2007 Criteria) after cycles 2, 4, 6, 9 and 12, thereafter every 3 cycles.
ASCT, autologous stem cell transplant; HDC, high-dose chemotherapy; SD, stable disease, p.o., per os; LEN, lenalidomide
Phase 2, single-arm, open-label, multicenter study (NCT02399085)
© MorphoSys AG | Meet the Team | June 25, 2019
L-MIND: Study Design of Tafasitamab/Lenalidomide
Primary endpoint
Overall response rate (ORR), central read
Secondary endpoints
Progression-free survival (PFS)
Duration of response (DoR)
Overall survival (OS)
Safety of the tafasitamab + LEN combination
Exploratory and biomarker-based analyses
Sample size suitable to detect ≥15% absolute increase in ORR
for tafasitamab/LEN combination vs. LEN monotherapy at 85%
power, 2-sided alpha of 5%
Mature Data: At time of primary endpoint analysis with data
cut-off 30 Nov 2018; minimum follow-up 12 months, median
follow-up 17.3 months
Lenalidomide25 mg/d p.o.
d 1-21
Tafasitamab12 mg/kg
q4w; d1, 8, 15, 22*
Tafasitamab12 mg/kg
q4w; d1, 15
Tafasitamab12 mg/kg
d1, 15
r/r DLBCL
1-3 prior regimens
not eligible for HDC
and ASCT
primary refractory
patients were to be
excluded
≥SD
until progression
66
*at study entry
© MorphoSys AG | Meet the Team | June 25, 2019
Baseline Characteristics
Characteristic Specification n=81 (%)
SexMale
Female
44 (54)
37 (46)
Age [years]* median (range) 72 (41-86)
Risk (IPI)*0-2
3-5
40 (49)
41 (51)
Ann Arbor Stage*I-II
III-IV
20 (25)
61 (75)
Elevated LDH* Yes
No
45 (56)
36 (44)
Prior Lines
Median
1
2
3
4
2
40 (49)
35 (43)
5 (6)
1(1)
Primary RefractoryYes
No
15 (18)
66 (82)
Refractory to last prior therapy*Yes
No
36 (44)
45 (56)
Prior SCTYes
No
9 (11)
72 (89)
Cell of Origin
(Centrally assessed - Hans algorithm)
GCB
Non-GCB
Unknown
37 (46)
20 (25)
24 (30)
67
N=81; TEAEs, treatment-emergent adverse events, numbers represent % patients
© MorphoSys AG | Meet the Team | June 25, 2019
Tafasitamab + Lenalidomide Safety Profile
7
9
3
11
10
11
9
3
9
9
15
8
15
12
15
12
21
11
11
1
4
5
10
4
5
5
5
9
6
4
5
6
5
10
6
9
11
6
3
16
1
3
4
3
5
6
1
1
3
1
10
7
12
7
27
1
1
1
3
1
5
21
0 10 20 30 40 50 60
Dyspnea
Vomiting
Bronchitis
Muscle spasms
Nausea
Constipation
Back pain
Urinary tract infaction
Fatigue
Hypokalaemia
Decreased appetite
Rash
Pyrexia
Oedema peripheral
Cough
Asthenia
Diarrhoea
Febrile neutropenia
Leukopenia
Thrombocytopenia
Anaemia
Neutropenia
Grade 1
Grade 2
Grade 3
Grade 4
Hematologic TAEs in ≥10% Patients
Non-hematologic TAEs in ≥10% Patients
37 patients (43%) required LEN dose reduction
62/80 patients (78%) were able to stay at dose ≥20mg/d
68
0%
50%
100%
ORR, overall response rate; CR, complete response; NE, not evaluable; PD, progressive disease; PR, partial response; SD, stable disease; CI, confidence interval; PET,
positron emission tomography; CT, computertomography
ORR 60.0% (95%CI: 48.4% - 70.8%)
CR-rate 42.5%
82% of CRs PET-confirmed
18% of CRs based on CT only
N=80: full analysis set patients receiving at
least one dose of Tafasitamab and LEN
NE due to missing post-baseline tumor
assessment
© MorphoSys AG | Meet the Team | June 25, 2019
Primary Endpoint: Overall Response Rate (ORR) by IRC
CR: 42.5% (N=34)
PR: 17.5% (N=14)
SD: 13.75% (N=11)
PD: 16.25% (N=13)
NE: 10% (N=8)
ORR
ORR 60%
69
DoR, duration of response; NR, not reached; CR, complete response; PR, partial response; CI, confidence interval; mo, months
Data assessed by independent review committee (IRC)
Median DoR 21.7 months (95%CI: 21.7 – NR) Median DoR for CR patients: NR (95%CI: 21.7 – NR)
Median DoR for PR patients: 4.4 mo (95%CI: 2.0 – 9.1)
© MorphoSys AG | Meet the Team | June 25, 2019
Duration of Response (DoR)
Patients have 43% probability of a CR
CR patients have >90% probability of a durable response at 22 months
70
CI, confidence interval; NR, not reached
Data assessed by independent review committee (IRC)
© MorphoSys AG | Meet the Team | June 25, 2019
Progression-free Survival (PFS)
Median Follow-up time 17.3 months
39 PFS events recorded
28 patients still ongoing with study treatment
71
CI, confidence interval; NR,not reached
Data assessed by independent review committee (IRC)
© MorphoSys AG | Meet the Team | June 25, 2019
Overall Survival (OS)
Median Follow-up Time: 19.6 months
29 deaths recorded
72© MorphoSys AG | Meet the Team | June 25, 2019
Summary
Durable responses and favorable overall
survival represent a very positive outcome
Tafasitamab + lenalidomide has the potential to be a
novel, chemo-free immunotherapy for r/r DLBCL patients
Tafasitamab + lenalidomide showed promising
activity with favorable safety profile
SUMMARY
73
Q&A Session
© MorphoSys AG | Meet the Team | June 25, 2019
74
THANK YOU
© MorphoSys AG | Meet the Team | June 25, 2019