MorphoSys (MPSYF) 6 Aug 222022 Q2 Earnings call transcript

Ladies and gentlemen, good afternoon or good morning. My name is Julia Neugebauer, Head of Investor Relations at MorphoSys, and it is my pleasure to welcome you to our Half Year 2022 Financial Results Conference Call. With me on the call today are Jean-Paul Kress, Chief Executive Officer; Sung Lee, Chief Financial Officer; Malte Peters, Chief Research and Development Officer; and Joe Horvat, U.S. General Manager.

Before we begin, I'd like to remind you on Slide 2 that some of our 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 and expectations for the compounds in our pipeline as well as the development plans of our collaboration partners. XX-F subject cause number differ December our those in are uncertainties risks materially, XX, statements all SEC described may report, documents time that actual MorphoSys' in XXXX, forward-looking and to year to of a and including for from These the annual time ended other and results MorphoSys. to of speak mind as to important statements our is that keep in today. of this It webcast in agenda for On today's Slide X, find you'll the call. overview an with Jean-Paul will give begin will outlook. and an Joe provide provide commercial turning and an for second update update to before our a call then pipeline quarter a will results. Malte XXXX summary of on will our the financial Sung development

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

Welcome, hematology/oncology and today. lives in a on cancer our the for joining Julia. Monjuvi, our second we becoming you, immunotherapy. in and patients. of in commitment commercial cancer you everyone, a made us quarter, thank leader making strategy progress Starting the with In difference Thank meaningful and

second with will We the sales provide in competitive. that in details increasingly an back environment more shortly. in pleased the is Joe bounce becoming are quarter more

we duration what by in encouraged related seeing to are We trends of the therapy. are

competitive However, additional second-line recent we treatment also including the increased, landscape options. recognize has approvals of

reflected lowered expectations is sales we our in second Monjuvi. which for our XXXX, revised such, range half As growth in of the guidance for

ensure work best second and of professionals line closely drive appropriate of the We growth the patients. outcome duration the health to to with importance continue on for treatment care

Turning pipeline. now to late-stage our

studies. and the our with pace for encouraged pelabresib We Monjuvi III pivotal Phase enrollment are of

to in standard treatment where patients. disease-modifying excellent manner myelofibrosis focused to about to the with positive We're We at the in difficult-to-treat Malte care diseases ruxolitinib. continue continue and being which billion approved, in sales. impact for recently the of in positive feedback, hem-onc peak a later. to could combination presented regimen transform potential change $X to patients talk paradigm Pelabresib's first-line receive mature. for We have KOL studied work than dynamics, for excited If data data and will this Pelabresib generate is to a and more EHA continues

believe in remains For of from large largest unmet DLBCL enrollment. setting, interest others. where high-risk in is X study significant study patients Monjuvi, an the that we the on which There is is positive opportunity a first-line this medical the a having the there IPI The distinguishes to need. from frontline score effect focuses study with on community X,

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progress also the be encouraged continue partner about within to pipeline. We our

in from of year. data readouts in the expect RA for disease this end We by Alzheimer's otilimab gantenerumab GSK for pivotal Roche, from and

the programs focused clinical teams The mentioned wave late-stage commercially I setrusumab, in of pace previously Monjuvi development. represent mid pipeline. driving has and our term. studies, awareness potential long large encouraged late-stage earnings pivotal as the opportunities field with And our next As of remain and to value-creating we We enrollment over our and partner call, with very education. are the executing QX ianalumab, mentioned, on abelacimab advancing which of are reached

a cash We have balance runway. and strong sheet

this draw Joe, strengthened bonds turn exercised on Thank issue. we further via that, have agreement I development And a seem Royalty funding for option million to our We to financial Joe a $XXX our technical with over now you. with as has We call the have Pharma. will per update. to please.

will Malte go for please. Malte, to development So the we update.

good and Thank afternoon, everybody. you, Jean-Paul. Good morning,

pipeline, We and pleased advancing we making have are we clinical are strong with in the very a our very progress trials.

let Phase III me our studies. start pivotal X First, with

II MANIFEST in progressing our is very myelofibrosis patient well. pelabresib, For study in first-line enrollment

enrollment DLBCL; lymphoma Incyte, that first-line well. by zone follicular For study is in refractory marginal our inMIND, relapsed is in tafasitamab, patient executed very and progressing or also frontMIND, in being our or study

fusion This Incyte autologous progressed TTI-XXX, further to targeting plus for a as treatment and other and with quarter, with transplantation. and or to partnerships CDXX entered novel immunotherapeutic new combination we cell the tafasitamab are Pfizer's who clinical stem patients a eligible in protein of also tafasitamab collaboration not the trial in entered for combination therapies novel DLBCL Pfizer investigate with investigate We pathway; relapsed lenalidomide a refractory DLBCL.

In novel tafasitamab addition, in lenalidomide of investigating the have the the relapsed that these refractory may immunotherapies lenalidomide potential believe patients. with to to the treatment options new of and DLBCL. to Xencor addition combination of initiated and antibody Xencor's chemo-free combination combination patients plamotamab, CDXXxCDX We provide study a tafasitamab, or bispecific

at potential and blood defects clinical from normalize have improvements in that cell blood white with findings myelofibrosis cause with and myeloid The that data concurred myelofibrosis, the deriving and bone of JAK and at pelabresib first-line volume. European and the root cells, translational the disease, the the presented healthy seen the June, cells showed X the This with marrow findings clustering the we in cell pelabresib volunteers. to combination populations, in Megakaryocytes quarter, these new MANIFEST the a cellular released typical from The development. one imbalance in Phase correlated responsible also or with potential as Hematology indicated the in research platelets, the signs blood to of and These help ruxolitinib, We normal correlated trial. the potential lymphoid cells alone of restore improve megakaryocyte thereby latest in enrolled analyzed who inhibitor, has the clustering are response. the patients getting decreases of spleen from of Association for trial decreases myelofibrosis. and are the the MANIFEST Congress, in marrow highlighting pelabresib the treatment. II the making bone cells In we the of in clinical may

and in potential a confidence signaling disease attenuation the that improve in monocytes, III findings pro-inflammatory pelabresib MANIFEST-X and suggest patients profibrotic our in help process. or for Additionally, with pelabresib alone reaffirms suggesting myelofibrosis study. outcomes of combination These Phase decreased may

and to of continue data on reduction spleen from volume more a data later evaluate symptoms the mature -- to present the We MANIFEST reduction this durability the for and study are total excited year.

on later second-generation year. We inhibitor, to this tafasitamab CPI-XXXX, and our release also expect data EZHX new

data than year, For tafasitamab-lenalidomide Phase Ib These a updated been effect inMIND treatment. study DLBCL. responses and and longer-term more data of enrolled curative reaffirm have remissions years. further firstMIND, tafasitamab, present combination including will with durable for in treated longer-term to of treatment we follow-up suggest who DLBCL, synergistic this patients experiencing treatment, lenalidomide are patients study the present of first-line of patients who later responded Also our These potential our patients the X with patients with in data first-line will we updated as assumption DLBCL. for tafasitamab from data in the

provide study to excited this potential more to are We our effective frontMIND effect study pivotal a ongoing Phase patients treatment option. these III with and the in

Now inhibitor, our solid as as bucket is EZHX in several lymphoma. tumors being trial currently CPI-XXXX, well a assessed for

preliminary we We year. in will the of are we multiple release this data half efficacy by also a which the medical observing second conference encouraged are during in indications,

expect we over As clinical you flow years. next steady of the a data can deliver to several see,

We the have and Sung I potential. our that, lot progress, turn of of made the a a With now review about over financials. are call for will pipeline to we excited great

have technical gentlemen, Yes. We glitch. Joe should back Ladies with for small now. us and apologies this

So jump go would ask Jean-Paul, not If cover -- Joe? like and would maybe results. that's over and to the commercial to you then to results Joe now. Thanks. the have in commercial I working,

in sequential underscores basis, patients. a turning commercial Monjuvi Monjuvi our Yes. the to On were increase. results. an positive which treatment saw quarter since further for sales second important $XX.X growth. a now the net we XX% highest We're XX% Monjuvi as was year-over-year launch, representing notably demand million, Underlying

with staff opportunity good with office sales leading from to the X,XXX than line a care we This continue proposition. of having the share where starts. community value new important visits setting. and all balance to teams more sites teams orders. second call person, and XX% reach orders patient their second setting, of traction, of as allows our Greater broad since a of that educating key quarter, ensure sites market interact on than are to approximately total ordering launch maintain in understanding repeating of XX% it came patients. Monjuvi their the from now to Monjuvi conduct customers expanded for We our in the continue have academic with Our Monjuvi's is complete Through and the XX% we

use greater of awareness continue an This Our number Monjuvi. a share to provides patients. opportunity high, ensuring us of voice increasing for of an level its remains with expanding for

the guidance, As is the treatment and the due I entrants past market. our landscape evolving into more over updated months competitive new outlined to in became few

profile option and their line receive continue practice be local deliver practice to they we However, as and will treatment. Monjuvi's can patients immunotherapy to that only in the the remain second administered in physician's at communities allows as differentiated

therapy this of optimal was on and our benefits care treatment longer. year, as know, duration of health providers immunotherapy on focus earlier educating the patients the you keeping Our

is you seeing Sung duration of have opportunity durable turn Monjuvi, the that for some increase the persistence patients working year. in have look continue We to positive best will most the physicians on please. and are possible. to more a Sung, To ahead financial seen update. treatment we further. patients that, updating With than forward are treatment a over date, We and appropriate we for I with outcomes a continued believe actually to call committed there a to and of trends number so

and XXXX. Jean-Paul. financial share Thank results half for first quarter you, of pleased the to We're second our

XX. Moving to Slide

$XX.X of year-over-year. Monjuvi quarter XX% the sales growing earlier, second were stated Jean-Paul XXXX, and million XX% As sequentially in

sales U.S. from We in the royalty revenue recorded the in of year. this €X.X quarter of Incyte, second partner, for also million Monjuvi our outside

recently partner our royalties far been reflective has of Incyte As stated, the and mostly are have from Germany, thus that. sales

in an U.S. in U.S. million of Slide sales. XXXX product sales recorded Cost that of quarter in million X XX. year-over-year reflected €XX.X and cost the €XX.X were Monjuvi We and other the supplied Monjuvi revenue; recorded second is in to primarily quarter same €XX.X was margin. is the and with under countries yielding second specific as licenses, and Europe. equal year expect MorphoSys provides in Monjuvi Monjuvi compared of was the period a sales, of royalties reimbursement €X.X revenue ago. driven the million a ago. the Recall Incyte Total gross This supply the milestones Monjuvi supply and Total for cost achieves sales pricing a second in increase in of category million amount as XXXX. ex-U.S. outside of The in to U.S. to million quarter sales year in grow On was higher other compared sales €XX.X revenues by to

was the Turning to our primarily expenses. to were increased €XX.X compared the €XX.X second launch. expenses to additional in of clinical in XXXX. to quarter expenses same €XX.X the programs. million quarter period Constellation to million the million the Selling to in XXXX quarter and second decreased Monjuvi investments decline expenses operating the XXXX. stage the compared of support were of XXXX in million The the first €XX.X the R&D of advancement compared The growth second full investments in for of second million reflects XXXX quarter inclusion made G&A support €XX.X XXXX of €XX of to year-over-year in quarter the by year-over-year XXXX. of for million year second driven the

and The included XXXX agreement Pharma. Constellation of second €XX.X related costs quarter in with million transaction to Royalty of the acquisition

of a of million reported the recognition quarter Incyte. €XX.X profit XXXX, XXXX of that Recall a the €XXX second for noncash by in decrease consolidated net period the to net same of with the driven financial finance of quarter For we loss profit the due liabilities the ago. million compared year was from a to income second collaboration in a the

The and cash that $XXX at We anticipate of XXXX draw funding sheet. second balance to end our ended Pharma of to proceeds We the quarter the million notified development million of will Royalty milestones. future pivotal year. XXXX. €XXX.X through funding product clinical intend we investments well proceeds from €XXX.X With recently with compared this of Turning future and to the and receiving the million bond used the fund be our September important funds we're launches. and prepare and capitalized cash in existing to from hand several bond, our to for development the advance investments operations studies on

our Turning for XX. guidance to on XXXX Slide

million. range the R&D HiBio. As out range we SG&A previously felzartamab €XXX compared of range to unchanged the The updated, million. million €XXX the range be million range are the €XXX and the in million to to of Jean-Paul. million components partnering was margin net in to $XXX anticipated of several on compared €XXX expenses million. €XXX product Monjuvi expected Gross U.S. to XX%. of by net to July With which be guidance €XXX of back remains to expenses product for are R&D previous U.S. $XX €XXX reduction XX% to Monjuvi to call million range in to sales guidance were of expected achieved the The like to of financial I'll $XXX XX, in million anticipated to million communicated would be sales are the significant is was hand that, summarize. for in range our to €XXX XXXX be I up the million. previous range previous $XXX million to to to

Q&A, few words. into with like Before go to we I'd conclude a

in progress We remain intensively uptake this with and Monjuvi pivotal focusing We indication are potential studies a and on and on of enrolling to great late-stage are value for we'd years believe tafasitamab, that, open pipeline DLBCL come. driving our motivated flagship stakeholders. Operator? the pelabresib next front. making of committed we first-line patients to like questions. the the potential and successful all the over yet to We the execution on has X create significant to for call With the

Instructions] with Securities. [Operator Jason Butler we'll first our and ahead take JMP from go And question

us just the what you're to Monjuvi. seeing at has look to a starts, Can the when quarter? share and been what what's dynamics more little there was in the one talk the your First any as -- on of the you color the more or Can the doing messaging the prescribers? bit beginning patient at competitive in share either to trend second-line that throughout end you're you about then give refine versus you quarter? the reinforce quarter And

new Thanks, Jason. long-term And earlier that real excited almost their best-suited reflected that increasingly, has update that we tell a treatment option with yes, Monjuvi. setting. seen pretty years been some recently. But now again, homes to Look, you not with life. But regarding we lately. why DLBCL the me in And is are patients two our secret with competitive stay the that it's entrants. we've in patients of the allow we've have very competitive community are let guidance I obviously, in we outcomes. basically We for bottom line a mentioned environment,

So that's very with and actually outcome curative impressive a potential.

of some and possibility ultimately, don't the the options that's So want. have they there out what patients home, at to this keep

low there on the eye past capturing X communicated yes, we that X that this share, And fluctuates X second of a we're your for, with on of new we're our out patients. X numbers. out And probably higher quarter were very proud start, mean, we're setting here year. between And are well close placed to competition, patient questions keep, I second-line market our obviously, in in that we'll to extremely patients are X But on obviously, back believe in patients. and we we close basically the data. And growth of ends more go we'll over the quarter-to-quarter we've second line. X to the So but hopeful, community out

last was what pelabresib. MANIFEST-X, you've in is then just my about disease-modifying been EHA? And at that physicians feedback you And enrolling you the talk KOLs? from data specifically on Great. the presented getting the on Can feedback question

question. And your will Jason. Malte Thanks, address

Thanks, Jason.

hosted we meeting investigator We at So EHA. very meeting. had successful a a really MANIFEST-X

And I I after we The trial, Constellation direction. increase so much meeting really two patients seen so so never have think trial putting this after room. we are tremendous in that hearing the participants have in the the acquired common is a pretty from myelofibrosis. denominator adopted much study. of seen in the into option we with line career, is the and anecdotes a bottom excitement sort That's is, acquisition, can are that one you treatment my best on unapproved I everybody. the patients hearing after -- many with excitement we and in is One for that speaking give we maybe the or turnaround pelabresib

having the study unprecedented after a start, really are progress I'm an speed. So super is at with we And now happy enrolling slow the making.

feedback give boost I this Europe. [hosts] we quick the U.S. are currently second enrollment. again senior are at MorphoSys The in can in anecdote really is and doing the all as is And in visit positive. sites Asia, roadshow, seeing are key the a in very we we basically hearing reflected And a R&D going by you are and

enroll So can. super the it the soon see we hope as Jason. obviously, be study is well only I to And super doing can to continues we are positive, as now. data I as And right excited, as

ahead Gordon next from James question our And and take with we'll JPMorgan. go

Three from please. Gordon James questions, JPMorgan.

was The Monjuvi. first on one

but a CDX, maybe year, you competition you've competition. half bit some and CAR-T start the slowdown. in got of CDXX you've looking anticipating out But called aren't beyond, more the this So more a second of competition

maintain of do pace, you the there, you current think parts you question. you the please? decelerate? sort we So next think about the How should That's accelerate, first or moving year,

similar on was question question. a and Second OpEx

on will terms we clean on your be updated need take the to basis guidance. with you many Are of and about that ability the to deal SG&A back you then think subsequent a up might down of we profitability. cost is in I which done to to seeing as question, cut more are this year XX% on spend cost And that go can sort third Or into leads areas you years? still competition? ramp

thinking on on the what think key reach is? said what passed latest So you and through cash you'll milestones. runway I the you operating is basis when an profitability could that have

that is So saying that's to through might you kind you'd when you 'XX, need in that -- more money? cash money then to to raise some have and of sustain reporting

Thanks, James.

We by Sung. will back two with question And go start we'll with commercial and Joe. the then questions three to

Yes.

you around SG&A a James, OpEx, runway cash of profitability. couple questions So generally had and

let So SG&A. question your me address about

million €X our did end and U.S. of SG&A as some we But, So FX XX% down some plus, with companies, we the we guidance keep the mind, expense, in other course, fine-tune majority, the Monjuvi bottom incurred major range. commercial headwinds. the on as -- of our that vast top co-promote in where coming facing Incyte. And of well are is

acquisition a were expenses in because think FX headwind majority FX are So incurred the of we're further with our you for for negative the it X% Constellation. in of would year, the the the And total OpEx, the entire U.S., facing SG&A have especially headwinds. I generally, not about a guidance seen reduction

R&D headwinds. that this think trim, the that when will as expenses stop. to not we the for be FX room factored We're constantly So further and fine-tuning in that constantly needs in, structure. we that our suffered we're from at there But impacts I to but looking obviously, well. look And future, was cost SG&A

major this that when we we action consolidating a organization, with year, our Germany. Of in course, took started research

us So terms that reduction. of was in able to cost help

to we'll structure. to your profitability. optimize So be looking ways question And very cost continue vigilant at on then on our

of in let the know said the our else, I've goal the me Constellation following first we alluding and is to year before in the to the XXXX. don't is, you I would change I anticipate acquisition full revenues positive kind year cash pelabresib question flow think be what were of something But having this. U.S. to and That's profitable if

flexibility. think Monjuvi of within of the We obviously, of don't take looking million, that months. profitable in this away. a many cash, terms just of the when that runway. times, And in being we're between the XX that low co-commercialization think XX that upper co-comm funding Monjuvi Pharma, we profitable $XXX in you're And million gets fund we at to of from us this course, in and good generate we're next terms million skinning-down terms then €XXX cash If be a proceeds in mid-XXXX. from XX pivotal our And sales the well us We organic that's And will sort increase it's to having the bonds million, the us If Incyte. our per to development spot components. said far quarter, programs. able reach P&L, in Royalty the a scenarios. will our can just with And

So I'll over regard I think competition. I'll it question that. the half And it second Joe on hand Monjuvi to at to with leave

can environment year upcoming our and space saw with this market said, it also new since hopefully for we of With Sung, it, the entered as competitive evolves it's back sales updated to James. We're additional where to from Thanks, since competition. question, the we The strongest everyone me. that launch. DLBCL reflected every QX and current has And I'd thank been in aware results, dynamic like guidance. the hear you to entrants Monjuvi and demand our competitive come

good we the in safety guidance strong the in to we growth see which to ahead and patients have give in only looking which we and half. stay would of to share just with that teams. based a point the of value on second And convenience, their local like you you new in We attractive to their provided second continue being full practice their communities outpatient with would line proposition, homes, idea safety off-the-shelf immunotherapy efficacy, in year forward, profile is our the a leading allows

you I helpful. slow? don't How hope you looking could things that's beyond maintain are thinking year, but next to you as is if you year? face sort of year? -- go me, this was, Or do the think of do for very about we more know in even Monjuvi into exit hear accelerating the Or the can competition? The question rate

Joe.

Absolutely.

wanted I to on ask just term. Yes, to Sung comment longer the

Yes.

these obviously, options the competitive James, couple So recent treatment second highlighting a in are entrants more of we're with dynamics line.

I dynamic liability. think longer we'd like Obviously, to of get financial has here term. us call in longer a new on our a implications few under quarters more making of -- this call the terms term make experience to the in for

side, we process. for any, competitive opportunity education in our how we thinking This be Monjuvi. need there. But to beyond have cautious the in seeing on improvement to optimism the question is very -- more if of a of and statements of But any to Nothing with quarters the changed terms putting changing long-term will see and the the long the is experience So term. terms dynamics what impact, about persistence we're long we're be out of about peak regard sales. want measured the just on an fundamentally Monjuvi. year still recent term Look, changing has this few

large opportunity untapped opportunity the first-line us. add perspective I obviously for the a significantly very in for up -- profile and that of the Monjuvi. This builds And is would

with with ahead Deng move our next Xian Berenberg. on go and We'll to question

I please. two, have

sort of general more question. a a is one of first The

what hikes? Regarding the that's of for but the right. for on the just on great. assumptions bit you Monjuvi, and the macroeconomic FX, new generally, rate the is about are Just be more bit the condition? dollar of inflation, are What U.S. explained a updated wondering guidance, all the are a the your -- general question on guidance. thoughts very how would kind your what And strengthening if assumptions your just That wondering interest second probably already

just competition, line. the bispecifics Any it's very are terms leading next at of time, So that Polivy setting, if share guidance. said high we or terms just on I would But I'm you second presentation, bit a I whether more community felt mean, because full comment, usage competition, year. your in lowered you sounds It be in wondering, you in even that the wondering probably all very the until could -- in near-term the coming elaborate of CAR-T. not positive. great. in was same year Yes.

And which on is homes, at that important. you engage by on really is questions. the to that's suitable commercial Again, and how most that. to the already and and but start pretty we get some the the it basically that us I'll educate back new stay Thank work most patients as And doesn't option for competitors, recent. CAR-Ts, enable for patients. I'll here, come continue question for very community we are answered especially the we of to that the these is that this have their some the it, labels traction fact and change fundamentals

with You mentioned. duration treatment, combine that I the which of

of real some absolutely potential. already life have have who years patients curative is in And this fantastic. treatment, We the which X is with almost

very and is be other indication indications drug first-line a of We're in this competitive and dynamic the to competitive landscape and indication evolving. competitors, the new in come. of we So engage current There continue our will we'll very the aware benefits and are yes, on market. to but the educate

On Sung. the other question, I'll pass to

FX. to questions. regard Xian, your rates, inflation, thank you effects basically on guidance macroeconomic the interest for asking our Yes, And you with so about were

dollar, assuming the these said, there account in fluctuation, eye range basically, but keep factored And U.S. then strengthening not all guidance fluctuations. is that the we've companies. something can the as of although range an all FX, if do rates the we current slight events. a that range I second is can some for there's in think the half. we've in macroeconomic -- have we're to absorb some But extreme Inflation certainly, on, some variation

So I will continue monitored. think that's an to ongoing topic be that

the rates, somewhat lot variable tied and U.S., businesses interesting wildcard. in Now a to is cost A interest rates the a a with of in of the has think U.S. Federal I capital weighted this in of very When very Reserve regard rates. interest of for been and to business impact is U.S. on this can interest our negative average hiking aggressive the course, have interest increase, And companies. our rates

does what the which impairment There further decrease a is that noncash carrying MorphoSys? Now would rises risk mean could value cause a in goodwill, turn rates this interest charge. in of for

Our potential R&D and exclude any guidance charges. ranges for SG&A impairment

mind. something think very in to keep important that's So I

Morgan ahead Pritchard and go Stanley. next We'll take our with from question Pippa

me. few Just for a

be quarterly the basis? repayment and what Firstly, to of future? refinancing for the cash the flows the the dynamics for paid interest us interest Is in is repayment over up of it does to take roll the what a on A Or second on around are development the bonds? Monjuvi. able options accounting would on and you And one through -- frame time then time? the

in second-line You highlighted in DLBCL you setting, has the increased to report earlier. that seems the to competition assets CAR-T CDXX mentioned which the refer

planned a one or You've first therapies, the but were if for other around mentioned wondering the analysis doctors pelabresib? do i.e. sequencing followed by interim Is want was use CDXX-directed already third me. Monjuvi I an there competitive there concerns commented around? dynamics, And on then CAR-T very any quick the way of to on

question the Thanks by for start competitive the We'll Pippa. Great. question. your And then Joe third pelabresib. for then Malte on questions, on Sung,

Jean-Paul. Thanks, Great.

$XXX the terms are, Pharma going regard funding be to QX bond, start basic million with will repayment taking, first the that Royalty XXXX. of in we're to the So developing the

each. will first the quarterly The And away. million be million will years X be X $X.X each. quarterly next that's XX payments payments So $XX.X

of repayments QX basically, XXXX. at looking starting of quarters this bond So in you're XX on

Yes.

Malte on actually the CDXX and Joe, So sequencing.

medical the Thank physicians accounts, prior some there. a question that perspective, dynamics physicians use date But then that to it used Malte has issues tafa-len over team. clinical to obviously, been to that's to come turn CAR-T. not the about question, I'll Jean-Paul, there and in thanks handled by not had competitive up any But them or when obviously, seen have our -- CDXX. you sequence talk you Monjuvi-LEN some and are can Pippa. or as for Absolutely. From sequence whether we've not we've We've seen CDXX

Thanks, remarks Joe. from my end. A couple of

CDXX have to seen after the not evidence lenalidomide tougher down significantly we treatment. any combination goes the that So expression date,

published publications point. to of number actually have We this quite a

of with CAR-T outcomes patients treatment treatment. CAR-T make is that have at We an last upon host with this wanted knowing whole I to combination And together expression seen to a to the are CDXX from have the been symposium or the going moved number we who comment is understanding topic that Incyte, for a actually at cell treatment pattern good also ASH. colleagues important cell our tafasitamab-lenalidomide on investigators,

with going respond cell upcoming are treated been patient and we would after date, compile has session patient not in CAR-T evidence ASH at that to no one to available the data there's a it meeting. So tafasitamab-lenalidomide present all the combination. a to But absolutely treatment

Take the...

Sorry.

handle the pela Malte. You should interim question. Thanks,

Yes, Okay. sorry.

that we short and that for analysis you conduct statistical a So is. are to not have it's we interim said give plan, includes And analysis. And on or reason preference details not very an our of a the consistently we our that receive. analysis, interim any I question why give whether is to going frequently actually

very whether So the interim FDA And introducing on advises in clinical this not have strongly not change companies is includes do from could the enrollment pattern clinical statistical strong or don't any reason details remarks the plans that the about trial. disclose have interest analysis, spoken you of and trial, that's about interim potentially in And analyses. how enrollment extreme to are enrollment to But happy like. a in simple. the are following processes Once trial speak goes. bias you and an with high that's to we say my to MANIFEST-X back to is the the fast how come not prepared the want this. satisfied and regulators and recommendation it, And something regulators I we and why analysis

stay better So for color not than you giving more the sorry, apologies is but and safe well. here, and study tuned, progressing

response... no next We'll due take Agarwal from with Vineet question to And our Citi.

Yes. Operator.

the on next. move Let's to

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question. Victor. answer will your Thanks, Joe

you, Thank Victor. Excellent.

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would to now that that, for for closing today. conclude additional over like back session the remarks. with any our And call question-and-answer Julia hand does to or I

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