MOR - Earnings call transcript Q2 2021

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Julia Neugebauer

Ladies and gentlemen, good afternoon or good morning. My name is Julia Neugebauer, Senior Director, Investor Relations at MorphoSys and it is my pleasure to welcome you to our Second Quarter 2021 Financial Results Conference Call.

Joining me on the call today are Jean-Paul Kress, Chief Executive Officer; Sung Lee, Chief Financial Officer; Roland Wandeler, Chief Operating Officer; and Malte Peters, Chief Research and Development Officer.

Before we begin, I would like to remind you on Slide 2 that some of the statements made during the call today are forward-looking statements, including statements regarding our expectations for the commercialization of our products and our development plans, the impact of COVID-19 on our business and expectations for the compounds in our pipeline, as well as the development plans of our collaboration partners. These forward-looking statements are subject to a number of risks and uncertainties that may cause our actual results to differ materially, including those described in MorphoSys’ 20-F and Annual Report or for the year ended December 31, 2020 and from time-to-time in other SEC documents at MorphoSys. keep as that of to this statements important speak webcast today. is in our mind on It On Slide X, today’s call. you will find the agenda for and Jean-Paul the an with will quarter will outlook. give overview an begin second of then quarter update our to and XXXX an Sung first will will the summary a results. before on provide and half development update Roland Malte commercial of provide for turning pipeline call a our financial second

the that, call open will to the for I we now remarks, With hand prepared these Following over your Jean-Paul. call questions.

Jean-Paul Kress

exciting Welcome, thank our for I have bring we to us second members. very the to joining quarter excited opportunity patients. fit a great us new welcome update. development, significantly and commercial allow our to pipeline we unlock This short, breakthrough for the therapies mid express capabilities Pharmaceuticals addition warm tumors. we particularly into team to regulatory everyone is potentially Together business late-stage MorphoSys to you In as position their Constellation’s an uniquely with and our proven to new to are solid company and clinical today expand and of Constellation Constellation, with hematology/oncology. our financial positioned to for our value. new results am bolster and chapter want about and our expand in well candidates

also enhance increase the presence efforts excitement and opinion patients. and the meet as tremendous the in hematology/oncology to cancer. on patients had underway we Constellation’s to improve time Over leaders will focused we market their of with our to both is have candidates enthusiasm late-stage Constellation several and opportunity to of with have physicians do to their and living Key expressed what lives spend the team our I and mid together needs are weeks, last in Cambridge organizations. bring we the can well amongst Integration

quarter-over-quarter. Moving sales in and XX% grew to Monjuvi, we achieved $XX million

the gain that saw and Monjuvi as U.S., July. well see in in sales second rollout continuing With the positive underway we we impact exited momentum the we to vaccination quarter encouraged the to are

in the ended with While uptake to than patients anticipated half. Monjuvi by of had COVID environment due of first the on a we we brought on majority anticipate second first increased challenging the therapy half, lower half for the number the we

that reason, For on. narrowing further revenue especially encouraged positive Sung Nevertheless, by about elaborate trajectory, future group recent we Monjuvi’s optimistic we are are share market guidance, runs given our leading and the will remain the momentum. position which

second lead more patients, duration to We of naturally longer are to a which will seeing a line treatment. shift

development for the broad DLBCL initiated third year. two pivotal and lymphomas. trial a follicular this and we zone refractory have believe a has and we pivotal We year anticipate CLL beginning program non-Hodgkin’s backbone be to in in therapy insight, partner we underway our marginal relapsing lymphomas for and this Alongside later respectively tafasitamab first-line have trials potential tafacitamab a

are on another IGA autoimmune a also start also are trial with we scientific this progressing track candidate anti-CDXX providing high and our autoimmune to at will be conference with year. And in later a membranous for disease proof-of-concept unmet nephropathy, We nephropathy need. update felzartamab, we the

has hematologic need clinical trial will Phase next treating There is treatment potential Pelabresib paradigm. update remains starting success. newly Phase tumors. change myelofibrosis trial best-in-class has a for potential and in we in the ruxolitinib. Constellation, is currently large for EZHX how compound Constellation’s to maximum about MANIFEST-X and with MANIFEST-X for stage an believe evaluated Turning from combination both with second-generation optimize clinical X give Pelabresib the inhibitor, will X Malte and we solid which in is to with Pelabresib. that patients myelofibrosis being acquired now assets for the a our unmet the trial

Together, EZHX second-generation We preclinical in forward the great see overall company’s call has opportunity and of lots to the pipeline. to in commercial therapies inhibitor have promise promising to With clinic. to Constellation’s are bring data, advancing we will breakthrough shown our we history. it chapter to looking a the over turn I Roland that, for next patients update. write The and the in

Roland Wandeler

over everyone. Thank of sequential This Monjuvi second you, a million. We of Jean-Paul represents and sales quarter hello Monjuvi XX% $XX.X sales reported $XX million. quarter increase first

approximately Importantly, $X primarily The quarter from orders trial also by the demand. driven million. were results benefited clinical of

the exited see results, sales safety as are positive profile, have We large we efficacy, administration, with incremental setting, we our the increase awareness third key and from adoption academic the with we of in build are centers Monjuvi’s for demand, We need. community April trend momentum headwinds this saw with quarter. and treatment The of holding seen COVID steady, leading growth DLBCL growth After in relative drivers in in and response market this for the coming especially XX% patient in market throughout relapsed/refractory in a second-line uptick differentiation setting. in the a from share, encouraged community quarter. we continue June with the May, ease momentum of anticipated unmet Monjuvi and duration and into

Monjuvi more Looking at demand accounts, since XXX more launch. in in aggregate, than ordered detail, have

we anniversary in orders. XX% ordered, the in proportion QX approval. approach accounts accounts that trends During those as The orders are year repeat the and level accounts with quarter, Monjuvi’s of reordered the second since repeat representing X June, of saw These increased, encouraging launch. of highest we nearly XXX approximately of

we metric important the the is Another penetration into setting. tracking are second line

longer to which over stay response in usage treatment on the relapsed/refractory are increased setting. and lead patients of duration confident in benefit second are enable we We and therapy, will time, to observing line increased

that an positive at ease. ASCO, remission. not suggests also in overall show and compelling increase only treatments combination safety profile. response a as We data potentially are seeing to with data the X-year to we continue feedback. lenalidomide also present restrictions could durable long-term The lead received customer consistent where It durable L-MIND patient We

data momentum to for able months and the profile coming take SOHO Building present the clinical into in second ASH July, expect continue were additional at We of remain half define we optimistic we to to on XXXX. the of Monjuvi. to the

are the that the due up or to accessible. as there either teams While the MorphoSys pandemic, to an professionals more to fully physicians’ in that, industry ready, ability global to to sites are engage not call healthcare running and continue closed we the still of meet care in I for at over person and as are increase of Malte. become are care sites With turn inside seeing

Malte Peters

Roland. Thanks,

across the throughout tremendous progress pipeline XXXX. first We have made our half of

a Constellation, programs, clinical pipeline believe which cancer of four the have is way robust could of With the acquisition advanced we we change now treated.

to assessing parsaclisib, or in to CLL first and frontline lymphoma. trial, For dosed tafacitamab, we additional the combination we data Later an PR diffuse for year or X this patients extending large plan start relapsed/refractory pivotal patients. pivotal trials, early lymphoma Insight’s year, B-cell with Monjuvi tafacitamab indolent clinical the next development inhibitor, in two kinase

MINDway, schedule and patients We that number relapsed/refractory of schedule study optimized DLBCL. will treatment initiate with important will with for Optimizing particularly treatment an investigate Monjuvi the follicular for with NHL. patients is lymphoma a also administrations a reduced

and enhance MANIFEST-X We I are excited will share in the will trial minute. on how parsaclisib a myelofibrosis we developing in some updates about

to trial M-PLACE commitment in disease We trial, a with IgA disease in and X AMN, another study. year need investigating per is patients per are new with autoimmune in in the EZHX EU. currently It about with potential year parallel, United are XX,XXX in develop nephropathy the nephropathy. about new inhibitor. is tumors. to in potentially Phase we autoimmune unmet patients run significant which X,XXX evaluating about with membranous CPI-XXXX in its unmet And confidence and and clinical clinical start IgA felzartamab our an diseases. is the for a high States broadly nephropathy, trials, a autoimmune a in medical patients hematological solid or felzartamab These best-in-class highlight need,

addition, In potential about this lenalidomide. could patients the data that are this that disease. is long-term preclinical treatment we molecule with have offer with suggest to data These synergistic CPI-XXXX showing excited for

a news tafasitamab. exciting received take hoped Now, at earlier it had the this is We we step bringing let’s positive for than for pivotal and opinion CHMP look a much some towards Europe data The the and European are the included Commission’s to were awaiting in eagerly decision. European dossier treatment possible. as we follow-up in as soon long-term patients now X-year submission important

We are by shared and status Polivy. the designation confirming orphan follow-up the maybe of of X-year strong drug in very to COMP Monjuvi we this encouraged ASCO, benefit At trial. significant the our L-MIND data existing EHA the compared mid-July, ICML, that by confirmation potential setting, from therapy

suggesting at that data functional profile. X still encouraged durable of regimen The continues cure offer consistent is L-MIND could XX.X are alive, patients certain are that years, and patients. months, overall survival median by XX% and maturing for to and safety a show We responses it a this the

X anemia, with ongoing has there cancer demonstrated us States by are marrow an unmet spleen of patients with and patients patients that about ruxolitinib significant is second-line patients a and is standard high excited for study XX% with of in strong need. there reduction second-line the myelofibrosis, considered on Pelabresib, a randomized MANIFEST myelofibrosis. a may Only curves benefit or patients become strong many in Slide makes XX. have care very receiving Pelabresib unmet inhibitor, It ruxolitinib which and best-in-class Phase study, Kaplan-Meier and high the the experiencing plus are first-in-class a JAK half against third-line potential BET to potential ruxolitinib, the for new has of X. This medical data the need. that myelofibrosis: first-line with combination comparing spleen Europe, all XX,XXX symptoms. DLBCL, success third-line global these and the is We therapy, myelofibrosis XX,XXX suboptimal ruxolitinib rate in marrow may confident only the bone shown myelofibrosis. bone of also front-line is be are a with myelofibrosis are response patients. volume of intermediate shown volume, therapy risk. alone impacts high in of the type fibrosis, hallmarks It also estimated United four to data It that a a constitutional achieving there inhibitor, In are response, so or about Pelabresib a

raise diligence programs, its study. the trial of due trial of participants Constellation’s by our design Based optimize to approximately acquisition, X clinical the specifically MANIFEST prior patients. every carefully to success, process aspect the on to assessment, number our increasing detailed the probability development overall to looked decided XXX During we of we into

of expect place, its operational this additional to study other the the of this goal and XXXX. report in ensuring and improve speed countries enrollment with also with interaction first measures. launched develop a sites, achieve and remainder and MorphoSys and clinical mitigation half all a activities in with position of Throughout already living transformative adding the With beyond, from ever we half expanding achieve medicines to will people second that XXXX we mission. data have excellence. for investigators, number expect cancer. will includes of year improving enters advance This plan, to topline cures milestones to stronger We the than CROs, potential the key of the

expect For indication, this namely conference to AMN nephritis. IgA felzartamab, the at to medical excited And a are start a clinical we year. data immune share study later in we exciting in second

expect Pelabresib, a provide to medical Phase cutoff MANIFEST new conference we data data this X later of at of a For year. study the

tafacitamab year we and where combination year, several CLL novel will studies agents be lymphoma. combining in the Next non-Hodgkin start in will with

studies XXXX, data to X with DLBCL. we from our and and first-line out, XXXX and expect namely potentially patients reading in study, MANIFEST clinical offering XXXX. pivotal benefit Phase also We will X myelofibrosis see inMIND, frontMIND, In

can the news that, at looking of see are I With we and for to you the coming the turn financials. a exciting call is So, forward that sharing over Sung there to this will news. horizon, review

Sung Lee

you, Thank Malte.

for and share We’re first pleased of XXXX. financial to second our the results half quarter

quarter €XX.X total quarter-over-quarter. were million, of quarter, million second quarter XX% to from of €XX.X second sales were XX, €X.X XXXX reflecting the in to million a of Royalties of the quarter were reversal Monjuvi Cost revenues of to XX% net quarter-over-quarter. second the were QX sales in increase €XX.X compared for second of million, Slide €XX.X in Moving from XXXX, compared growth due in credit for to of a sales million XXXX. comparable impairment period an the charges. Tremfya million, the €XX.X

investment were quarter million of of R&D expenses to second with quarter the in last in to our related the growth quarter of the period €XX.X advancement The million, million €XX.X for of in second compared programs. million reflects partnership expenses €XX.X at XXXX. expenses to €XX.X million increase compared recent proprietary second to our driven year. to operating primarily This by the same in Royalty expenses, Selling transaction XXXX. increased the the support €XX.X G&A was million, the in compared were were million second down, Constellation the slightly quarter, and Turning second in €XX.X costs €XX.X Pharma. to quarter of acquisition

For collaborations partner a consolidated profit second the income from reported net our a DLBCL and related collaborations €XXX.X million declined do The quarter net accounting €XX.X to the finance financial Overall, finished to in million product net €XX.X financial liability €XXX.X financial inside not the million finance any loss In reduction at compared of impact was of in of income of €XXX.X collaborations. Incyte. the the liability, consolidated decline the in of by U.S. relapsed/refractory we second reflects a Monjuvi quarter, in balance due cash. to the the XXXX. million, that of liabilities from liabilities recognized, of second from and mainly have from the quarter-over-quarter owed of of on million. setting, expected Recall sales collaboration, to an profits recognition view the both quarter,

the XX XXXX driven of in decline Insight, for in to consideration reversal €XXX.X of for first in XXXX. for half €X XXXX, the due of €XX.X our were million, first entirely for part of first half Moving of credit impairment compared to year-over-year total The the the results half million period of from by of of to a XXXX, €XX.X were sales million revenues of the the first first €XXX.X the comparable XXXX, recognition compared Cost half XXXX. million upfront charges. a as was the of half partner, in to million Slide the

quarter XXXX. second G&A expenses, operating in compared services expenses Monjuvi. million the million, the of for year. first that the full Insight, million half XXXX. half, million first to €XX.X last partner, of the were €XX.X €XX.X Recall in provided Selling expenses the XXXX million €XX.X were first first same first compared R&D million, to to period impacted with to expenses Turning expenses for by for of half in half in the compared the the of were half by €XX.X our quarter in was connection first €XX.X

Constellation As and related XXXX Royalty the of quarter previously mentioned, impacted was Pharma. costs second by transaction to

net we XXXX, to half compared For of first consolidated million XXXX. the first profit in a million, €XXX.X of net of of the loss half reported €XX.X a consolidated

As part from mentioned million benefited recognition XXXX from the Insight. earlier, €XXX.X partner, of our as consideration of the upfront

second billion. €X.XX Turning cash the Pharma of Pro to €X.XX end the the quarter we purchased the and investments investments of as sheet, completion equity cash and to with following XXXX. Royalty acquisition balance the compared was and billion, billion of the Constellation by ended of recent forma €X.XX

billion. As Royalty will like pass for milestone also to XX% of on of royalties, of we XXX% Tremfya on Pelabresib gantenerumab, CPI-XXXX. of Pharma, $X.XXX of key you and have I’d XXX% earned payment clinical royalties Pharma future will of on return, future transactions In of assets, with made Constellation’s closed sales and otilimab, then elements and future pass an XXXX payments second and net on XX% quarter royalties on MorphoSys of future starting Royalty through some royalties our Constellation with X% thereafter. these Recall Pharma, that Royalty to agreements. upfront walk MorphoSys the

MorphoSys All income payments statement. recorded of royalty will in these be the

liability method. royalty based such, the at third fair Pharma the effective is As liability value that of a in we and financial The the subsequently the measurement entitled on interest for is to. initially quarter will record payments Royalty future financial

amount to per new weighted a €XX.XX XX,XXX,XXX price Pro shares a prior close basis, of the MorphoSys shares average forma share, X MorphoSys Constellation. outstanding shares the acquisition, funding of purchased the million of the $XXX at in acquired aggregated part acquisition the the shares following of volume on purchase. trading of Royalty Pharma They agreement. days diluted is the ordinary as X,XXX,XXX Constellation of Following price

Turning €XXX range of sales guidance €XXX to range Slide updating to million million XX, of revenues, the Monjuvi on to €XXX we a million of range provided group starting The our narrowing updated are reflects XXXX million. for €XXX the to product with previously guidance expectations.

Tremfya we range. record continue will and to this mentioned As guidance in is the revenues, previously, reflected

between like would comprised €XX expenses, in and to for operating of include be questions. XX% operating costs to With transaction-related Moving one-time to expenses of which of expenses Constellation includes expenses, XXXX. we operating SG&A the the we comprise that, is R&D to of to anticipate R&D expenses, call transaction-related Operator? which XXXX €XXX XX, to million of the million, also range We excluding one-time expect open range XX% costs. for The expenses July €XXX as million.

Operator

first Thank from Instructions] you. [Operator question. James It We’ve Quigley, received Morgan is the Stanley.

go line now Your open. ahead. is Please

James Quigley

Thanks for my questions. taking

one – of couple metrics a us bit as with, or going feedback you’re reticence accounts Monjuvi, in in the managed a face-to-face first suppose, of I number double-hit you’ve more lack the of how of quarter? give bit So can a a KOLs, maybe the efficacy U.S. then And be, the we’re on refractory you launch using since on have speaking reopening in physician lack efficacy to you’ve that details also, in terms more to perceived Monjuvi, had in patients there or tracking well are to primary of interactions given some seems some to as last patients. some key

XXXX, field? Pelabresib one. hearing reasons number trial, out from adding November MANIFEST-X prescribe XX the and you’re of pushbacks X in in September trial had so XXXX to for just readout. potential from patients the in question years readout what are completion months Monjuvi not more more of clinicaltrials.gov two, the terms with So, a or primary readout, XX start the so for the number trial That’s primary starting to and And key the sort that of question under

looking endpoints, enrollment was original up? follow number power the of approval for reduction volume And Thank than spend the benefit benefit do what symptom uptake? power total endpoint the on primary was the a is slower show key secondary a So, particularly or patients? on on receiving are you. to score? you either or to more it longer to total for score for it increase Was symptom need anticipated, And for decision or you

Jean-Paul Kress

for commercial go questions. answer Pelabresib for the Monjuvi obviously, the question. question. the James, Thanks, the will and question, Roland Monjuvi Malte KOL will

Roland Wandeler

hi, and James. Jean-Paul you, Thank

– we course that of a metrics, track Monjuvi one accounts of questions of Slide Monjuvi that Regarding now QX, also and your since had of of shared ordering example, find adopting number are that Where X the outlined we on traction there, we with of launch XX% the have to just provided. just range accounts exciting. accounts, metrics, presentation just number And some we as which there. you see, on XXX are which in in you a increasing are in very XXX we that we community at close which we

QX, in therapy at to question to we that But we half the now And in mean to as physicians of physicians see pandemic, had patients When we tough with data ASCO that due we our it the our actually in comes are see and increasing feedback, person, everyone. this fact, what person year in and resonate long-term a durable the of data engage to engagements saw as XX% to at especially encouraged physician we with could physicians truly to have engage potential that and our Malte translate are our in that ability hear person, the we are we duration especially we being into we message able engage with and the explained, Your own for whenever with professionals shared first us remissions. for to X-year person. adoption. of possibilities as exit and healthcare there, X-year about importantly,

actually is X-year could patients, for In are and KOLs that just patients, KOLs, is mean and expand study that, hear an but what this data on still from And continuing. across around Malte, terms that some patients we still of that that the can details. it also for many of we on look excitement Monjuvi we you on subgroups, actually the appreciate going knowing what offers hear the as option that

Malte Peters

only think and are L-MIND well. Yes. had we with you a ones double-and the We on enrolled I patients And the we the considerations data study. few we triple-hit patients. But questions several that did extremely published triple-hits aware double-hit and times, in some the that had had

to So so a few regimen a we activity of to had degree, points the we this point have I fairly think fairly one partial in high response, data one the that response long actually setting. complete

that, with Pelabresib. of I maybe move to second So your complex

on You trial wanted execution. to the have some information

company, so we enrolled. analysis trial. first a what was patient me knew April the we to performed the study diligence the the Let we planned knew November, Constellation say we when thorough really our Yes, became be with with just due did and was until actually opened the situation, situation very in until the of took it

clinical the be XX. healthcare the do we bit reduction the to the So we endpoints, attention and that remarks, it’s of TSS optimizing place probability on key we trial With decision increase want spleen have be execution. highest also that respect primary success. in on number secondary both We said I prepared to my in XX, on also have authority – increase want X, give the and we the increase size. a to the and successful could to exactly understand accomplish volume to endpoint, as were, the to because health participants, current the we best – To we endpoints, of the feedback, fleshed-out also understanding will that, – sample the a – of on decided already full that feel we from to plan day And pay we we need certain increased more number trial that.

James Quigley

you thank much. Okay, very

Malte Peters

you. Thank

Operator

question next is you. The Zhiqiang Thank Shu from of Berenberg.

Your go open. line Please ahead. is

Zhiqiang Shu

questions. my taking for Thanks Hi.

wonder, the modify schedule. second dosing, Monjuvi received to that question guidance. – I first you related around feedback to Particularly, expect XXX something is to initial third for around peak U.S. regimen want guidance? Monjuvi. decision sales in we the felzartamab. trial what the understand The And something should is the on see this XXX is to data drug? question much. from the I or the your a to else? physicians, the run based I optimize So to this release your peak forward mentioned you In in to recall you is and terms question Thanks QX plan this Are release, million going sales about to the confirming related very what’s in data

Jean-Paul Kress

Okay. sales. question Thank start your in sales and this think peak the our you for achieve peak I’ll it the we still Yes, question. possible by range setting. second goal U.S. it’s achieve on to the it’s to of

Given to far with us we it trends as just mentioned, exit we But in QX. the the take encouraged may are that QX start are we there. very so had, continuing get longer

again, leading So have share instance, line. we a for in second

just opportunity the trials Phase multiple it’s development to So the this the DLBCL for number and The than the bigger of improve our broaden to beginning X label new emphasize and move, of other keep tafasitamab is plan DLBCL. indications, what first-line studies mind, We with underway tafasitamab I’d like opportunity. indications. instance, with that in in is here also just detailed is r/r to included

goes also that pursuing. strategies back backbone So, to are the we

put would it’s have, opportunity achievable, with we that context we much the the still I first but in of yes, think for line. larger So instance,

have unmet this clinical to have Malte. is to significant. other we other to compete questions high trial our recently opportunity. some on the out turn space. very the in and company development need, and On that there confidence a saw There I high probably in some thrown like that, would for effectively first-line our You It’s numbers

Malte Peters

will the study for IV patients, intravenous in This MINDway. the successful shortly called treatment the health is and that, the think Monjuvi expect, had authorities. study very the reducing the me, those will Felzartamab, trial which undergoing on which been design significantly vetted see the clinicaltrials.gov, again? aiming was And you is already once study. upon XX%, particularly of longer appear the details we number of increase from what already the agreed I this feedback durations. design, at has you authorities with question can It comfort question on first was remind optimization administrations so by health

Jean-Paul Kress

some The we would why I said was mean, publish and results case question we – study. the

Malte Peters

sorry forgetting it. for Yes, Okay.

we data we membranous which abstract already conference some in will be from excited And changes, the this happen study to autoantibody submitted will have nephropathy changes. the autoimmune with share conference, data ongoing also that So, an year. at respect to Proteinuria November in a to including but

Zhiqiang Shu

Great. plan in going terms autoimmune And Felzart, just indications? what’s for other to the of

Jean-Paul Kress

are just that about start we the Remember, week indication spoke Yes. second we going to any probably now.

The need. indication with kidney is an IgA nephritis, disease which autoimmune unmet is second a significant

these So, two we based on indications we And in further will future are basically developing parallel. results, take decisions regarding development plans.

Zhiqiang Shu

Great. Thanks very much.

Jean-Paul Kress

welcome. You’re

Operator

Jason from Thank Securities. Butler next is JMP question you. The of

is line Please open. go now ahead. Your

Roy Buchanan

you the taking U.S. competitive peak with how from million approval $XXX in mentioned guess million have the and for for one, U.S.? the different you to guys do $XXX questions. Thanks being Europe there for Jason. for first landscape that Roy to how as the the it’s I the Monjuvi, the Hi, compare imminent opportunity does see

Jean-Paul Kress

Yes. this we on question. It’s thanks able as the But – well, access. like would for Roy question. to market the to Insight elaborate you and be ex-U.S. commercial is operations know handling

access, obviously, question. So you and the to on comment defer Malte, market to... plans to the want we forecast for the them do uptake,

Malte Peters

was quick Yes, going first maybe all, I just two remarks. of to just say,

earlier really high at level the us and anticipated than of of much a showed came all, the interest First we EMA. approval

The combination provides in there with is is, statement that in second to Monjuvi, important this And maintain we is additional the benefits lenalidomide, a which by remark the orphan the Polivy. succeeded therapies, orphan existing designation, authorities over status in case, for Monjuvi. that significant

remarks So, will you these that maybe put are perspective. I think our product help into two to

Roy Buchanan

the recognizing quarter? where be just that expense that presumably guys for to is going are upfront in all that recognized? And one-time then, And Constellation where the you third Thanks. great. acquisition, Okay, on royalty, the from also, €XX million

Sung Lee

Yes.

about totaling already, million as last recognize your this we in million transaction-related year. be amounts on QX, well as did costs €XX.X all There part will QX, for So, part, €XX the in subsequent QX. of

revenue of transaction QX would terms we the with In Royalty closed IFRS recognition expect, that for would purposes Pharma, so in in QX, in recognized QX. be

Roy Buchanan

Okay, great. Thank you.

Operator

ahead. next Please you. is The Etzer Darout Guggenheim from Securities. Thank question go of

Your line open. now is

Etzer Darout

Great. question. Thanks the for taking

just if of IgA you wanted had study. the on to any design know nephropathy the one updates First

a I in be will schedules, study You I M-PLACE a on you on any have have announcing then the mentioned multiple from dose the color additional study. question. fourth data second POC guess any based read-throughs And placebo-controlled quarter? that

Jean-Paul Kress

Yes.

this an the that we a on this study, we submit year, meaningful. the clinically So, say that ask community we the very data and a field for at with on that the took later data nephritis disclosed available. show of informed the preliminary agree that is only decision With proteinuria. the the bit can little abstract to that design And hoping and autoantibody conference have to until publicly IgA will is exciting both we medical us with level I to are data, like will and patience I would of for you information respect not design,

Etzer Darout

around Roche had around wondered news And all any Alzheimer’s Got I of of gantenerumab, case, recent just the with guess, news on if given the given communication sort the it. you. you Thank sort Alzheimer’s?

Jean-Paul Kress

partners. is royalties heard making that typically on progress much publicly. have remain gantenerumab. very We royalty the with XX% versus obviously of not contacts interested have seen we don’t We as our what Roche retain you – have the by we And

Etzer Darout

Alright. you. it. Thank Got

Jean-Paul Kress

Thank you.

Operator

is Suvannavejh question of next The from you. Goldman Graig Thank Sachs.

Please open. ahead. line Your now is go

Graig Suvannavejh

on My assumptions Good XXXX. relative and Yes. Phase Could revenue Thanks timelines you current to trial of to just the X that good in questions. X? taking maybe or when sharing had got my beginning from I on I the several. follow-up Phase believe And acquisition there. trial on of the a the data of powering thanks just us contribution saw on first for a is, first you have clinical period the assets, remind update significant for in afternoon pelabresib. is your announced that Constellation you about the you Constellation, morning guided pelabresib

long and prior that there if your cash time is I separately made? trial clinical In that Constellation am just on does given or that current another the a Thanks. on transactions? you that, just And cash statement question you words, other to runway. the cash, Constellation on announced update your does current comment you then completed then today’s given could current have given cash, I to? take lines, the wondering development you anticipated got the out how revision So, additional that deal, and secondly, you given business – And of considering optionality give

Jean-Paul Kress

your Thanks, Graig, for questions.

late-stage Sung felzartamab. and the strategic by with full cash Constellation, on of development I tafasitamab to very Let’s very – our programs we plan from two have the and will with I in financial comprehensive and stop start to questions, now on by the runway. assets comment might mid mean, the our question, BD going lots hands addition

our I discussions power would So, moves, But we it’s have makes on assumption question. and to of that, was the you we never will focus the our not will it us it with cash But to potential with if will than elaborate that KOLs, answers a allow us allow We organization grow more trigger when say discussions had sense. Malte day-after-day the his months same know, couple like your on excited, initiatives pre-Constellation. financing in ago, to to Sung? on to say execution. never, our make focus pelabresib, position

Sung Lee

I few Graig, revenue in a Great. on – questions significant you will had XXXX. the with And start well,

timeline and for So, design that plans factored we MANIFEST-X. in have the

of be XXXX, And diligence our you that a due this during in made well said, significant contribution in the deal revenues would that of the Malte we time of was from announcement, at contribution would full revenue As about partial to when us expect XXXX comment known revenue year year in not pelabresib first revenues That and the would for XXXX. pelabresib. be potentially first the process.

Okay.

terms studies, of us this believe with cash very on would take years are the tafasitamab run sitting on our multiple as rate mentioned, obviously, has increased to a billion. But future, acquisition comfortable pro operating In we here, invest forma recognizing but we well. expense for basis, of not Constellation. but into runway, balance We I only a in €X.XX have MANIFEST pivotal as ability the the

point, would of and cash it the years. know And through would vantage We portfolio going the pending review current from impact be that, fall, this are the But outcome this go runway. multiple a to I multiple I be, in years, The it have potentially years? way options facilities, X.X at And how you at some here, your define we do etcetera. look follow-up right least question it’s credit may of longer. terms

So, that. I will leave at it

Jean-Paul Kress

Malte?

Malte Peters

a had a the of calls leading see maybe yesterday. and pelabresib have KOLs. some on with comments we very I just the with field report good how two leaders in And Yes. we couple so, of

bit other pelabresib. are we excited the hearing changed see to the regarding may medical probability product. have I compound, They not exciting think success about agents. a as most that compared of is it our assessment or community we the really investigational And

in a done the success. to between finding very we we the with thing high a right have probability think want the of being and middle And good job achieving I in same ground do pelabresib past, again. aggressive

our adapted to the the trial probability was design of future remains success. and super myelofibrosis it – in pelabresib So, the completely is But drug as reason give that we why assessment bullish. to unchanged a of highest make

Jean-Paul Kress

the assumption. revenue And XXXX No.

Graig Suvannavejh

Okay. Thank you.

Sorry.

Jean-Paul Kress

, question. Alright next

Operator

[Operator James JPMorgan. Gordon, Instructions] next question is from The

is open. line ahead. now Your go Please

James Gordon

am repeating confirm questions. I JPMorgan. Gordon, apologies of to if for very the and the points. James I too calls. the Thanks missed taking just many because questions overlapping Unfortunately, Hello. wanted beginning I two

interim the there why possibility confirming XX% see Thank Monjuvi has X million on previously the sort for not, or is has anything is amount? it DLBCL, some the by was you. come down before question, to analysis? if definitive there that peak one in And come same so So, in be was would potential the the $XXX million the not that Phase in any first XXXX relapsed data, So, Insight down? U.S. couldn’t that And you by way that $XXX the liability moved please. refractory the just of it same is do could that second we

Jean-Paul Kress

the questions. James, for thanks

the It’s second range echoing start being one. by a the me bit Let achievable. previous question sales on still peak the

studies So, and the we believe capital the product. long-term very the that of opportunity that to on. much – still it much we see the and We development a we allocating are are in see in focusing endeavors all as very

r/r So, the DLBCL. mind I keep to long-term beyond in would think I encourage everyone large, opportunity

question there think say. long-term, we space I the short-term, other I say, study. is the first-line, much are the a indications, that’s reflection making really of I are that will to recognize are adjustments turn are also I into very pela now not the would which like starting play And on the why would here.

Malte Peters

pela think, there accelerate. the yes, study, are I On opportunities of course, to always

with to as we the think as trial execute quickly can. alluded earlier, aggressively I the plans confident and as we really can are on I that we

I a of analysis we interim I a think to updates six how on intact, I months to so months analysis, trial up we the it have then respect more are would bit is prefer maybe see that. on not possibly at how touch leave With want interim introducing of and measures And design the prefer would to off. and our really taking keep this like we I because give we bias, integrity to end on lines. to time of nine our time think or can in maybe commenting

James Gordon

you. Thank

Operator

you. Thank

back to Neugebauer through, would have further wrap We Dr. to hand up like call. questions Julia so no I coming to today’s

Julia Neugebauer

today’s Ladies Once to of of concludes for MorphoSys the day. day, call. remainder with any a If is Investor Relations and available for joining again, Have conference would our gentlemen, and call. like follow-up goodbye. you of good you thank the this team the

MorphoSys (MPSYF) 31 Jul 212021 Q2 Earnings call transcript