MorphoSys (MPSYF) 12 Nov 202020 Q3 Earnings call transcript

So ladies and gentlemen, welcome to the MorphoSys Third Quarter Interim Statement 2020 Conference Call. Please note that for the duration of the presentation all participants will be in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. Please note that we can only take your questions if you have registered the name. [Operator Instructions] Now I would like to turn the conference over to Dr. Neugebauer. Julia ahead. go Please

quarter good Director good MorphoSys, of to our my gentlemen, update and is call. conference and My Julia pleasure third to you Neugebauer, Investor welcome financial afternoon and results morning. operational or name it's XXXX Ladies Relations at

XXXX me call release Chief Wandeler, quarter Jean-Paul for be update. our Operating A press today Joining issued business Kress, CFO; yesterday Holstein, third Roland Jens webcast. on today's website Officer; results Chief Peters, and the was This with on Malte found presentation Research along are and CEO; financial and Development Officer. the with can our

in Malte discuss turning by Roland, statements results. partners. for call. highlights MorphoSys. statements statements, year from Before X, commercial commercialization the our agenda for webcast actual our December this collaboration Slide corporate R&D financial some XX-F we to statements cause third business annual call quarter of months to find who results impact and the made update. our for pipeline the Jean-Paul compounds as nine is our the It to our remind you time-to-time today. to plans an of I'd forward-looking our uncertainties and our of that to on will the documents XX, products Jens of call followed ended SEC important well as a a that before overview our plans, for risks of summary in our statements for expectations in and on quarter number will These or materially including with Slide of report in XXXX, of our and begin today's activities will regarding speak provide the the other of like those may X, expectations MorphoSys described development will from during and on that the you third Then are and On COVID-XX keep begin, of including the forward-looking differ as the subject are development today mind

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

Thank The you, joining for of of sizable operational pipeline with our we considerable excited transformation us thank made very areas, clinical capabilities. deals every ranging research. approval day from discuss chain. I MorphoSys company biopharma aiming development development past will that achieved research we Monjuvi, two great about company worldwide. everyone. third commercial into the And progress over Good to quarter a marked fully multiple step commercial Julia. you also development integrated our am in transition and we In the master progress all to the partnerships to clinical month, as have to of clinical value and XXXX, the enhance to

Xencor Our with backbone adds to strategy. agreement our tafasitamab

of While portfolio. from the research innovative in-licensing an Cherry our Biolabs complements technology

Moving to Slide X.

third highlighted accelerated quarter XXXX by FDA of the Monjuvi. approval The was of

who the represents eligible to which Monjuvi for indication. second lymphoma, bring to this suffering treatment first for line deadly treatment our FDAs in relapsed or approval, large diffuse patients have or non-transplant options. B-cell this a refractory As focused laser limited teams approval with been DLBCL the treatment cancer, Since have

faced first in and weeks has or COVID-XX and track We the is fully early pandemic, the €X.X with the initial marketing launch uptake. strong momentum revenue of our are very during launch. by pleased seven we million of solution Despite US$X the Monjuvi's generated challenge million on

the aim accelerated in a combinability alone. in or momentum of given U.S. this improve seen more growth provide is knowing and U.S. beginning the believe given the and therapy. significant DLBCL for and During to tafasitamab since the line the standard-of-care accessibility. approval. the of Monjuvi has duration our US$XXX US$XXX in Monjuvi's color the approved first potential transform approximately as the just refractory Monjuvi is the in between our we This the September, we that patient a deal will for patients to in provided cure offers opportunities indications. Ultimately, diagnosed additional be DLBCL have believe into as DLBCL. event million, estimating rates KOL And Roland and in guidance in its backbone initial to we year million it indication, XX,XXX each potential and product launch year relapsed an pipeline launch in population a We peak are on

Yesterday, well Speaking to of Xencor's as develop an on that antibody with new indications and backbone tafasitamab CDX strategy, agreement tafasitamab signed this by ongoing including CDXX, use lines the specific in follicular frontline with announced other lymphoma. as to combination our efforts Executing we supports we into news. agreement to plamotamab. recent Xencor DLBCL, expand treatment our

the with assets. tafasitamab and interest Our companies in partner as of further their combination establish tafasitamab hemato-oncology, aim combine other have to is choice we wants from who to

the Moving with we now on made X progress have to Slide pipeline. our broader

target antibodies plasma or high disease to auto dialysis renal our With additional details in anti the specifically CDXX provide unmet felzartamab, we potentially development source therefore advance an the cells, antibody targeted require immune in nephropathy. auto-immune medical antibody, develop with program diagnosis and and of on need called auto this continue ultimately end-stage the We this later have Patients membranous could transplant. patients. anti for treatment kidney call. indication, of will the Malte provide an CDXX the a

partner psoriatic of increasing continues which psoriatic the the arthritis Moving of Canada adult active for was with an Union. a Janssen of announced patients opinion in and from provide in Tremfya treatment October, U.S. our European Tremfya recommending with this earlier the CHMP year, in now Tremfya, adult and use the for the treatment active to arthritis patients the royalty approved positive to stream. expanded

to Janssen's Tremfya or into commitment by encouraged very other arthritis broadly rheumatoid beyond are developed We indications. RA

which from in data with study, interring disease. results patients X presented showed Janssen Galaxy Crohn's encouraging the recently, Just

Turning posed COVID-XX resumed due been the enrollment it GSK the has now to otilimab. also the patients into to contrast after has of program, pandemic.

Cherry I research a reminder, X to well, a building with new we studies. also Hemibody associated study OSCAR XXXX. efficacy our Phase access Yesterday is which patients otilimab the us enrolled expected the gives T-cell a in portfolio. safety Up as are moderate-to-severe also with the in in pivotal very patients anticipated disease. CyCAT trial in to RA conducting upon ContRAst evaluate otilimab GSK a severe to called to next COVID-XX and As and program for with a in clinical licensing development patients technology technology molecules of to of data first on be is adding three XXX strengths our platform. announced pulmonary half excited the with am about our the engager innovative generation Biolabs, agreement building evaluating

of call. our excited later are one on provide more basis build to stories next new the pioneering Malte in this details We of success the Again technology. will

Cherry combinations, DLBCL. standard in agreement and new portfolio, Xencor with Biolabs, new tafasitamab underscores potential of our technology the backbone our throwing innovative for new care confidence the since and in Our our as with collaboration

patent finally, adding the beginning third of new advances results establishing performance from as This to our and and reported launch to of proprietary combination royalty result technologies, Group from strong supported from with in revenues to tafasitamab with income partner at of by as €XX a revenue new our we revenues, million. financial are more these investing quarter, the phase, development, choice. Monjuvi increasing portfolio we With a initial seven the primary XX% Tremfya. solid along programs come, weeks And in of was and growing the the the such

on Importantly, order a to that, our tafasitamab into invest I enhance which pipeline, now the Monjuvi. Roland for commercial please. in a over strong broad we balance development to shareholder to value. have of diversified will turn from sheet Ronald call in the With update

good hello be with be with we've Monjuvi and you, a with a about And strong is the rapid market. the our talking I'll in today. partner speaking Monjuvi our Thank you have Jean-Paul, This we're we sharing market first on to Together build launch. with you. It's Incyte to time momentum speed delivered earnings everyone.

Monjuvi a pleased seeing. to are laser been Our bring we and teams patients focused what are have with we to with singular mission

X large for lymphoma, B-cell diffuse the approved in treatment Monjuvi indication, with otherwise the lenalidomide Moving or combination cell not relapsed and take to eligible for was transplant. including at refractory to low with lymphoma are a DLBCL grade look autologous stem not of Page from specified, adult patients arising who

XXXX L-MIND in FDA meaningful this And response extended a months. of will response XX.X a a durable the duration rate is response based median and treatment. duration from rate to data Malte is was overall our on response study, of Speaking showing November our based complete that Note Monjuvi and XX%, his of of L-MIND this response on approval the data. to XX% longer-term best of of with highlight produces as part, duration further response data. efficacy

product subgroups. before As off easy to And line as in we a is academic second care safety paradigm control. monitoring. community combine set administer have to and high and IV in for across potentially both in and tolerability therapy, supports label that to shift or To into is a by translates first treating important and progression, allowing conversations an require disease with Monjuvi patients is responses complete physicians. not our accessible heavy towards Monjuvi you and patients number our long-term Monjuvi settings hospitalization, infusion standard of with a takeaways shelf only shared durable administered a profile does the the of resulting

a community settings. that Monjuvi's We are accessibility strong physicians is in hearing from advantage, consistently especially care

Jean-Paul number fully to with sales and our net line Moving $X expectations. were launch Monjuvi Slide shared as in million XX

July received time XX. reflect XX. on net September, the approval the accelerated know, that in in from momentum of confirming The patient FDA the you care infused orders $X As the of August million from was XXX on early sites marketplace. sales first end Monjuvi through And

the in other compared at our sales treatments to loaded. that we approach infused in treatment this treatments keep other Monjuvi who be through from are figure. being front different look Patients treated DLBCL are As space. mind is will with Please that progression

Our treatment years. into how L-MIND from QX will and in the data quarters starting to to the benefit indicates coming Monjuvi patients of able many potentially continue be

Slide beyond to looking and Moving XX, September.

XXX XX% October. sites October, ordered, momentum care than of seen and these of have further By reordered. already and end in have accounts of more account have the accelerate We uptake

early academic centers Looking detail, we account leading more dynamics in launch. from saw at in strong right uptake

of we matter XX% from as a look line in with of our community XX% with than and to we institutions both to in track accounts and expectations. and breadth and speaks interest is by more placed account shifting settings. networks, an adoption approximately gain key our dynamics, care at Monjuvi community Momentum on encouraged fact, This now of Monjuvi continued we coming have As the of care, October now feel as approved more NCCN accessibility use the academic in order. in Overall, are early broad and community market. the for

also rapid and payer front. to we've number momentum Moving had robust. Slide on been Payer and XX, reimbursement has the coverage good

early denied for where Monjuvi and within efforts Monjuvi for first Our launch. coverage within then, the team's reasons. have coverage up any to to and seen for Since payer both confirmation weeks commercial from of cases channels, set coverage we label have heard government been us has not clinical two from receive universal

health vast approval we This quality sets XX% larger launch, in in early so systems across broader looking made progress Monjuvi In than and pull of of NCCN aided networks. which significant majority formulary achieving XX% high the XX far guidelines. the through more XX in enable expect order to to key accounts We've prescriber unmet were accounts, uptake the and nearly by year was the the top our added of groups. covered reflects top community and of in at inclusion accounts. first EMR include need lives be Also, fact, supporting

we coverage, supporting we In addition to appropriate access to MorphoSys, is throughout to to are journeys. and care. how it and patients payer treatment understand help we patient At account their committed barriers important remove InSite, and services to numerous program launched MISSION prescribing program together and robust offers called patient caregivers. with support Support. Monjuvi their This And patients who a at colleagues our My are eligible resources

know we support. extra COVID patients need these During may times, unprecedented

to This support, that us who small For our them receive launched resources one the the of offered MISSION during helpful with are without had to to part caregivers patients of patients Support to do. Since initiative from Support. is valuable support to has benefit our XXX resources provides out MISSION what to always the Monjuvi protective at patient new commitment My reach need this launch, in equipment pandemic. we through patients center program and interruption close we've My the treatments and a supplies reason, program

the COVID-XX we MorphoSys and COVID XX, Moving meet and And to using peer-to-peer these now they reality. to teams during to different engagement. because operate are and in Slide overcome successfully of digital all drive technologies times adapt Incyte where and healthcare individual hurdles unprecedented a professionals continue

While COVID number and teams absolute have. engagements of impacts professional the health our

the We levels interest awareness to that and built have expectations traction are physicians to create we extremely all strong at pleased see exceeded during the pandemic. channels from our across

testament and the a they ability across. Slide As the we XX, last the with of important result moving have efforts we all HCPs that about are XX% message space. than our and interactions to team's look effective we voice to of well excited in And behalf that our hear professionals, see want with of patients. weeks, continue shows treatment engage to leadership greater ahead treatment sustained at in options This and is to we about physicians option in from get the to continue during this these that healthcare with on this physicians are hear to to get share Monjuvi to Monjuvi new

Specifically, and Monjuvi profile use safety telling to appreciating that and accessibility are And they Monjuvi the and rate of academic especially of that patients. COVID response us settings, the ease provides valid and duration community the the they response, during of are appreciate in overall they tolerability pandemic. the

by brings for are and first uncertainty the add for degree of winter the over to the But to we And with in after focused month COVID our need teams increasing all professionals. seeing and dynamics and is, us a I'll promise And early be recent we more continue for months the of with continue encouraged the our Monjuvi to still unmet strong shows us. certainly the remain laser of patients. driving Monjuvi are strong turn We Malte. to how it uptake awareness just market. in healthcare call launch that, momentum the It to

Thank you, Roland.

to In of to tafasitamab. the the continue Monjuvi, addition successful we clinical launch expand development of

in patients to soon this many as and as we is ambition medicine improve can. can lines to in treatment DLBCL bring as Our curates we as all and

is stem who the patients earlier transplantation. Annual As data on overall equals for an only Monjuvi its study of unprecedented to These data noted, complement part are by patients years These the demonstrated and DLBCL. or European validated refractory other FDA the collecting a approved with become safety well European months. eligible Real-World preferred only response the patients duration a not durability accessibility Jean-Paul Study with Association second new for is was EHA. dossier, data which data, at three the year from of complemented believe months, treatment the of lenalidomide XX.X data Meeting not also this to treated and To median median which we of but almost option year. is treatment We or are positioned Monjuvi MAA alone, XX.X line Data DLBCL presented from X. regimens. based L-MIND RE-MIND second with patients This line DLBCL Long-term called from of for the this DLBCL study this treated being earlier a profile, with the data relapsed cell that Haematological were clinical with survival initiated

which completed in also of great for interest Phase potential treatment shows are first of of ahead We line developing the a one we community treatment month X this option. And X/b study the DLBCL. as tafasitamab enrollment our have schedule,

this frontMIND. unmet Data from at conference ASH this for our for later especially data for basis patients initial upcoming year. high the line X is the the a from patients. firstMIND Phase high in first this pivotal There's present risk will study study study We setting, DLBCL need

diagnosed score to Newly are three an with DLBCL risk. of IPI patients high five considered

frontMIND are to and lenalidomide than XXX combination will in evaluate R-CHOP these R-CHOP less tafasitamab For R-CHOP alone with chances the patients, of XX%. up to to compared enroll cure we'll alone. the addition patients

We to early study start on year. track next this are

exploring indication pivotal is a next are in the we refractory trial lymphoma. relapsed DLBCL or follicular Beyond

approximately We to expect X randomized early expect to part Phase the study study patients in this into enroll XXX the of next and initiate year.

goal lines. the are treatment tafasitamab our developing confident therapeutic for achieve across of to as of the We all backbone DLBCL

with is the Our agreement tafasitamab Xencor towards DLBCL another as for choice step and of establishing beyond. combination partner

plamotamab also refractory are patients in of patients DLBCL, refractory bispecific excited combination with Xencor's relapsed We relapsed lymphoma. CDXXxCDX to antibody but evaluate in frontline, with or follicular DLBCL, and the with tafasitamab

of discussions opportunities treatments are As combination in Jean-Paul we mentioned to tafasitamab. evaluate earlier, for further

where of tafasitamab abstracts initial associated several mode DLBCL. to bring more the and of action in This year's safety goal disease. first to our is insights feature I mentioned Our and indications will B-cell data a already to frontline into month of lymphoma. is with our Meeting the clinical cancer evaluate the efficacy haematological CDXX providing scientific activities of in study tafasitamab publication from ASH

data of also will that from first of treatment with CDXX will durability we And after analyzing present on biopsies time, the L-MIND tafasitamab. report the expression the tumor study DLBCL additional before and patients remarkable We support for responses.

very antibody, being pipeline with nephropathy. on Felzartamab with anti we pleased have our in evaluated the XXXX. our we autoimmune assets, previously moving made patients in CDXX as Now is M-PLACE known currently where to-date the membranous other progress study to are MORXXX, in

due of We safety to enrollment COVID-XX expect significantly about we After phase, study increase. speed run-in patients and the resumed complete completion the the safety of that will are the the to into enrollment a pause have after pandemic phase. run-in

conferences. developing and medical is two I-Mab upcoming will treatment We of our running one is share study trials. currently for the at this myeloma pivotal felzartamab Also, from of multiple the data partner

Cherry T-cell engager different specificity the Hemibodies, We activate bloodstream announced molecules, agreement call engagement antibody. to T-cells for tumor the cells. two bind upon this agreement activate the This to to autoimmune T-cell to tumor our this in technology of targeting, cell antigen gives to of the window. This substantially enlarge of and we antibody, strongly dual targeting targeting. our split therapeutic now fused once touched with combination Jens called Biolabs. technology increase combined the a T-cell circulate of selectivity Both next a the use and Cherry antigen tumor One the These of focus our licensing fragment enhance antigen concept is the targeting fragment financial have enable Hemibody With functional hand and of engaging on a treatment innovative one agreement antigens I present review and on target fragments. that a to of As tumor freely modalities complimentary split over generation This CDX of the two that, surface T-cell. technology. to This tumor licensing into MorphoSys become engager the Biolabs is and week part to on efforts the cancer well-established access clinically only a could core they results. other The molecule for strategy expressed for is for the T-cells. cancer to to is is disorders. research Jean-Paul and with be

Thank you, Malte.

supporting maintain The posted clinical growth development while very a sheet third strong balance yet successful MorphoSys was a quarter robust and for revenue pipeline. as quarter another strong we

also XXXX million third from Janssen. turn sale Let's time amounted to Monjuvi. US$X million containing of include of the success-based or of €XX million the quarter Group of first XX. €XX.X million in primarily for the payments now €X.X Revenues revenues revenues from Slide to

received reporting the Janssen XXXX still contractual QX, exchange As by public for were is been Tremfya in booked Janssen rate slightly on foreign the royalty has to previous yet. royalty Final effect. vary can tremfya from J&J. in based estimated numbers the quarters, not announcement due

as able In such to Incyte addition different [indiscernible]. to Monjuvi collaborations been as revenues, from the have as revenues well companies generate

for of plamotamab. in reflects our increase Inc, the the of strong driven and expenses commercial and expanded and comprised the expenses higher both also the external all expenses association €XX.X The the as Incyte quarter P&L. increased of administrative driven joint well categories. Monjuvi million services connection third as XXXX investments rendered the expenses expenses higher the for expenses million research costs result development and U.S. by launch. of €XX.X sale our operating external the to €XX.X the million expansion and in services personnel. to expenses rose by million Monjuvi of €XX launch in to €XX.X Monjuvi across minus U.S. activities for increase taxes expenses as with expenses general clinical and as total at personnel in with we and for expenses Selling development tafasitamab services Selling to before a the amounted in Earnings to largely our MorphoSys Looking laboratory report interest million, all for by expenses for

minus present in Slide Our Earnings for our minus I'll third the segment XXXX. XX and consolidated to per share were loss QX, XXXX. million net after taxes €XX.X amounted a €X. summary quarter of reporting of

by in year move to of for months the the XX increase develop the part in to quarter to first and minus XXXX of in €X.X and from to €XX.X grew and mainly first in and Partner million revenues through MorphoSys our candidates increased to first pharmaceutical development million €XX.X to Development general €XXX.X advancements XXXX. higher Operating million. Proprietary our expenses million - Discovery segment amounted and this its for revenues first segment million to programs. revenues same €XX.X in million cancer to its in Hence, the for million. compared nine the QX rose our financials product the Discovery in Proprietary QX, minus technology Slide focusing in Partner to the versus year. development new royalties. in Please Development The share of expenses nine own QX, Incyte months nine transaction. XXXX. of for XXXX. €XX.X million see drug administrative XXXX. EBIT the first our of Research this propriety for candidates revenues to proprietary from can investment representing you well €XX.X in €XX.X XXXX EBIT was versus fees, million and of companies in development fourfolds for drug Group to licensing amounted The year. the now year. expenses €XX.X researches expenses applies amounts and sales EBIT €XX The non-U.S. million reflect XXXX develops expenses time in reflects In Development segment for the of its million related Development Monjuvi success-based The research €XXX.X €XX.X the last the months and key of payments last Incyte and nine strongly driven increase million the thus further in to segment million commercialize the collaboration. participates to to increased collaboration was Proprietary the globally. with as Revenues agreement The premium milestone €X.X payment licensing as of elevated our million. primarily funding, recorded €XX.X QX Discovery million In as the Part from tafasitamab the to from €X.X million further its Selling million €XX.X €XX partners segment segment compared the previous of million on for As upfront of of for period the US$XX million inflammation. discover XXXX MorphoSys months accounted as segment Partner and amounted US$XXX

€XXX.X on September of assets the balance XXXX, we sheet XX, end see at total of versus XX, to of Slide on that million XXXX. billion you Moving €X.XX approximately recorded as the

on proceeds €XXX.X amounted or This compared on items XX, as proceeds amortized December On as to balance bonds XX, level our shares allows redeemed included other due issued Conversion XXXX, to amount, convertible be principal price. see times at we and of position conditions. cash share high MorphoSys their reporting strategy. at representing amount October through were reference assets principal The the repurchased XXX premium XX, convertible amount of a underpinning and current With bond story. of redeemed XXXX. to per and under conversion non-current ordinary €XXX convertible participated Our are end the was XXX% further successfully issued bonds multiple placed convertible position sheet trust of €XXX.XX existing than which bonds our assets previously new at after attractive above financial quarter is and Not or of value QX this our be new liquidity financing on cash cash in reported cost. an bond More you be bonds million no-par will €XXX.X priced unsecured execute shortly and the will oversubscribed us from on The XXXX loss can the at the financial existing equivalents, liquidity of very in million. strengthen position million with the at transaction fair we bearer of growth The into a annum. ambitious XX. unsubordinated, third MorphoSys. have canceled. the and/or converted, The in will the investors slide The set of principal of convertible aggregate unless profit secured the price and coupon continued appeal the XXXX. convertible October MorphoSys the X.XXX% XX%

and XXth, range guidance million XXXX full now EBIT move the please in the October the to increased the of are expecting in then Slide we million plus XX. €XX €XXX year our plus million For million. financial to range of guidance revenues €XX financial €XXX to the On and XXXX, for for

are million. of at R&D updated the reflects Tremfya guidance. and expected The participations for higher guidance expenses to end Our upper from remains guidance royalties unchanged the million in of range €XXX revenues in collaborations to the be €XXX

currency and be with in-licensing any guidance the impacted potentially global well supply of let the guidance personal and this last conduct in finish development half not does Monjuvi, addition, ongoing but approval the chain new for COVID-XX operational CFO section, include operations on exchange by potential as for now The first my clinical - and commercial my trial regulatory MorphoSys, the revenues sales company. at it of is of as subsequent is the in includes launch MorphoSys' a statement. me based This to including, short the from call product U.S. In of August. gentlemen, following crisis XX company's financial rate conference limited also candidates. time execution. constant Ladies end of After as ongoing years effects and lines close not on with might deals its from or co-development and

Thank all want leave the in dialogues I known the you. conditions. to company of Thanks those large depart now platforms. grow back proprietary to value market, development tremendous well you and Before come. undergone the call to than MorphoSys Jean-Paul. ever candidates partner further Monjuvi good will and throughout you the stronger since as and company to I have on this, I hand to financially research the the we further portfolio over collaborations, in now number compounds I and Tremfya to Phase X When over very and I all as in of the joined. trust, for innovative X a good has the a is with and of years years. I thank journey is and create Jean-Paul, MorphoSys allowing had with to turn

it the I collaboration. to future and great years, MorphoSys would Jens. been I Jens' endeavors. and pleasure best opportunity his over for take you has the the wish work you, to thank dedication XX you, Jens, with your a all to Thank last true the for like to

milestones Moving wrap and XX to was third quarter a MorphoSys. Slide period of for the up, significant for achievements

our stage of late research patients momentum goal the line fully successfully we the are driven strong stream Monjuvi progress commercial and impacts from collaborations. and with our are unlocking success with and and boost to development, to new Monjuvi potential care all XXXX. broaden launch and launch time, be dimensions of by enhanced a to or the market. targets, in business, therapies. generated U.S. full strong continue collaborations We transform just and standard revenues further to of making early to track which of in are of need partners on executed the the Ultimately, with the respective encouraged in from otilimab strong leverage from financial and guidance accelerated the And tafasitamab to current innovative We new with product in At across momentum adoption to continue royalty in and grow DLBCL we by cure we are we their for will our our to future improve increase Tremfya same we potential. reach leveraging on our rates creating, our

therapeutic and indication, vision a in to have Hem/oncology. in partner combination other tafasitamab of We the backbone as the choice bold establish

and Our to we is ahead. will continue month our progress Xencor collaboration step, you first share with the in our

are to felzartamab strong expanding immune that, With company addition, In now Thank you. are of our indications, value. and shareholder we Operator? the up for long-term we portfolio line will and R&D progressing the to create your success open questions.

[Operator first from question Geoffrey Leerink. Instructions] Porges is SVB The of

Your line is open. now

all on for Thank and progress. the the you very questions much congratulations

you current favorable you Could Jens, be MorphoSys with to in congratulate bringing MorphoSys to to Are can do to then on to administer that you have maintain collaboration. talk anticipate this very forward? confident in And the will order going secondly, other guided combination, about institution you've And CDXX to development? a be Thanks. hospitalized. partner year. you profitability or on antibodies, profitability whether you're First just the to lot CDXX biospecifics position. its that And I free want patients

second Jens, And important the companies biospecific, was other to third the free answer thanks having will very us. for any Geoff, with I'll one. question. one. one. a your we for first the it will Yes, are Malte answer answer partner

They is very strong data or in effectiveness a layer their the relationship that see granting value with long-term is This we for with of Xencor, have partnership of would the obviously and have promising, add rationale engagement Beyond this asset. stage which we them. great And in fact CDXX, lot between a actually collaboration another Monjuvi effectiveness anti our the T-cell with capabilities. on combination this.

are meaningful operate thought a So on can yes, with On for free But actually to that, very, Malte, answer other we on that? ones. this hospitalization you very the one any us. is question we

Geoff Yes, Malte. sure. Hi, it

combined. would resetting and our do clinical been remember, in initial you normally hospitalization never components Phase studies will the conditions, this have two So as occur X the certainly

initial you conditions, safety if will an of to determine on stages, the community occur. would in And administered would come be or treatments and we of would in how depending under So the then a in setting. signals, observe, hospital continuous Phase can course, patients the Xb treatment outpatient hospitals then combination the to this appropriate be

all, first much Geoff, then, for word. the thanks nice of very And

this to portfolio. for assets many in been profitable our turned and we back that we in we profitable actually know, you a you remember invest indeed, have year, many, have decided the profitability, then years long time might quite Regarding

really refractory expect increasing that expect in Given that, as in but turn indications. clinical big not a in of there compound relapsed now in settings fact to revenues we the that ongoing are well frame. we that I Short-term, will profitable despite one, only have DLBCL, coming another not trials in other make various course, that Monjuvi we would the short-term in

broaden on with why to and another also company. we the should expect reason think profitable cash of that So not intention sort reminds see you that some short-term therefore, our portfolio quite I

The is of next from question JPMorgan. Gordon James

now Your line open. is

to James the is questions. the convertible start here JPMorgan, from Gordon question on taking One with. for thanks please This

guidance. the about So also could to the now XXXX feature? or intended first about in about the the question the development So just see use broadening funds, comment of that's is revenues please. maybe And is or you I full-year M&A business just second question, likely targets? portfolio? And What revenue focus of terms talk in if the is wish-list QX your

of And But factors for How And by quarter? we million the by had are QX. was said hit the rest how can was same $X.X fact other paying in exactly product versus you what have of finally, please? terms had majority the to was 'XX just upgraded in is help and million you 'XX? this Monjuvi million related the €XX.X think the this other you the could from if think you tell is inside. Monjuvi between also us I So So you much upgrade now full-year are revenues coming many you commercial, going sales? us what and patients proprietary contributors, Monjuvi revenues. how €XX sales evolve guidance down of you do breaking

answer I'll for the James, next Then your piping Jens Monjuvi question. for last handle first the the will you ones thank one. question. and follow my

Regarding are actively when same in capital our - are on the the at you today. probably, we of is that announced ready all, us, the you looking on on Jens means which was first we to of have inside. together the opportunities aim understand thought where with that opportunities. to two the time our continue we at and the diversify the act But to to portfolio possibilities know other be right executed do be potential internal will convert to on And wanted time, we it at to BD pipeline, to move the looking have position we also invest on of this and and ahead convert, for we guidance? lot a be insight opportunities

Yes.

thanks all, very much of questions. first James, for the So

is €XXX XXX. in take. of So you've came give at or XXX a here, support as little bit seen, to Guidance maybe terms million in we

QX. €XX for So that you expect talk million million €XX to we would about

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number million. €XX have account deduct and it this from million to €XX into the to take So you

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you. A Thank lot.

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is from question next of Securities. JMP Butler The Jason

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Jason. for for questions. in taking Roy is Thanks It our

have ones, then ahead expectations you membranous felzartamab you're you And how couple the quick to treatment target that October. given of progressed and are sites achieve of so us for XXX the the and a of end MORXXX Can at on one those a you U.S.? of how remind number over orders are initial the many number to Just sites at your in at ESRD? for nephropathy, And sites. Thanks. many patients U.S. the EU

take Malte part second your probably question Thanks, and the take Roy. of the part. first Roland will

Jean-Paul you Roy. and thank Yes,

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answer Malte, that.

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CDXX, CDX, the on Malte rationale? And CDXX

catch I please you the sorry Oh repeat question? the didn't Can okay, question.

precedents of kind the CDXX, combining there just if right of know, had CDXX of you expression have you at is looked if those of just, yourselves? sort Yes, are combination experience sort just any the plamotamab sort literature partners wondered two core some of molecules the I or rationale Monjuvi and at sort wondered you tested you for preclinical all of own your with

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question please. Next

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XXX. First more is asset early an stage

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opt basis. back in We at decide are a And assess us and the stages periodically participate data the and want development. looking contractual on enables future in to to of the continuous the to whether data we then situation

a good situation. that's So

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to back Operator, you.

so up to just would call. Neugebauer today's Yes, hand Julia wrap I to back

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

conference concluded you your and telephone. Goodbye. now you disconnect a day. pleasant joining is for gentlemen, have the and and Ladies may Thank