MorphoSys (MPSYF) 17 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the Third Quarter 2022 Financial Results Conference Call of MorphoSys. Throughout today's recorded call, all participants will be in a listen-only mode. The presentation will be followed by a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to Julia Neugebauer.

afternoon morning. good gentlemen, and and good Ladies call. My at to MorphoSys, Julia Neugebauer, results welcome Investor Relations Head of conference financial and XXXX to third name our is you quarter its my pleasure

Executive Joining me on Officer; Chief Lee, call today and Demuth, Joe Financial Tim and General Officer; Manager. Kress, Officer; are Chief Research Sung Jean-Paul the Chief Development Horvat, US

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

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

of quarter us a for Welcome, This fronts. busy a joining was lot MorphoSys activity everyone, and on thank with today. you various for

come from I to our an own recent wanted on on news programs, Roche update I the Before gantenerumab. to acknowledge

as people millions of We disappointed every by by these results disease. are day there Alzheimer's are impacted

to on for study program this our GRADUATE to contributions commitments and thank work community. Roche their long-standing the their We participants for the the partner, research Alzheimer's are grateful their and to

results our our otilimab gantenerumab own the to While of and were trials it the and in disappointing, develop pipeline. validates invest strategy

significant We executing on and own over have progress our programs priorities the last made month.

into and call deeper dive we the to on pivotal execution, update the out Before two our an highlights. commercial like of studies I would projects

tumors. that as assets and we the late from acquired previously ongoing we mid-stage our us application with gives X/X from preliminary balance was the in tulmimetostat, that a million known from will October, Constellation share study First, strengthened more published phase support of Tim $XXX broad potential we sheet second, flexibility. CPI-XXXX. additional results our In range And which Pharma, Royalty shortly. advanced

and Our are be this pivotal to with continue well, we and III progress. studies Phase by enrolling pelabresib encouraged tafasitamab

in standard approved, generate expect XXXX. first results with for ruxolitinib enhance for studied and billion blood more is could laser-focused possible. of Pelabresib and myelofibrosis these the for we to cancers, in We this potential are care committed the half and delivering standard highly pivotal peak programs of change the than with to combination as study, in we patients on the pivotal first-line care are sales. $X data MANIFEST-X If soon have in important as of the in difficult-to-treat being regimen patients

disease-modifying the potential about excited data mature. continues are We attributes Pelabresib’s to where

IPI with medical this on significant high, three community has effect data and The very ASH score enrollment. we we from I'm reaffirms Monjuvi, of focuses need we'll our presence with study, to a the confidence speak will our about interest and there frontMIND latest setting. For a present strong accepted the more opportunity study oral late-stage of positive that ASH. expect medical this the others. an in in is a believe Tim five, study at The have at in from proud first-line XX which our on clinical total pipeline The still set of detail four distinguishes programs. DLBCL is the which abstracts high-risk what presentations. is to in year comprehensive and patients will

Monjuvi. from increased Turning to Last quarter, we commercial. for competitive headwinds experienced activity

the will or of third for provide As decline over to Monjuvi updated with the year. Monjuvi, who additional for more that, relapsed quarter, quarter, Joe, guidance treatment patients indicated please? in and options an full now I With details. will sales to DLBCL previous sequential financial in refractory a available led the hand

Thank Jean-Paul. you,

our now commercial Turning to Monjuvi results.

repeating challenges, Our a in growth Despite the starts, with were basis. new in our sales orders to Monjuvi million, orders approximately year-over-year a Monjuvi leading care second decline on the of sequential sites XX% Approximately represented quarter community. we market net patient maintain sites from we second-line XX% to of and share demand, are their X% continue X,XXX competitive launch. X% which expanded $XX.X ordering and however, of grew reach year-over-year. a since the X% Underlying coming

the second-line strong immunotherapy Monjuvi's remain in only in XX% Our reinforcing proposition approximately DLBCL. with engagement the are in-person value where field teams continues as outpatient practice to interactions,

line. and continue of to efforts differentiated positioning data, second on in the Monjuvi ensuring the focus consistent on clear messaging particularly, strength Our

patient strong XXXX, to year. see we in In gradual have median continued throughout progress addition, after persistence this efforts

to so I'll for treatment seen update. To-date, work physicians for on Research of a on call Chief two turn number for therapy best the our continue with to appropriate continue more an patients than outcomes possible. new year have patients years. over actually more patients that Development durable Tim, have some a With than the We Officer, with and that, and we R&D most

we JAK body This the cancers. myelofibrosis the pelabresib, of that for heart. other and patients forward. we standard-of-care that have drive dedicated symptom may rather may are the most a affect of far potential and of am and Thank includes but bringing have only XX% their innovative work on in currently, I late-stage company's cause my of enhance myelofibrosis. pipeline. of the I to disease with with I'm pipeline make, pelabresib BET be as to medicines lose for experts never addressing and each disease. career treatment by What team cellular modification. patients approach. its is by adequately the true this being difficult-to-treat the with patients being this discovery treatment network very sight of our is. to living for on hope. treatment drew training investigated excited myelofibrosis, We suggests thus Starting our history side with the than you, first-line of Jean. is to have developer do cancer a was Today, current patients. potential inhibitor and standard-of-care direct the defects thereby change treated the here cancer how I findings myelofibrosis physician devastating first-line Because And inhibition, accomplished the and urgent some data myelofibrosis MorphoSys with seen pelabresib myelofibrosis. to families waiting for promising The our presented to me important in trajectory of patients a relief the root focuses

within physician the deal excitement about a community. there's result, pelabresib enthusiasm a and of great As

II track progressing Our Phase X and on trial well. MANIFEST is

continue across we to the will half data We committed of are patient reporting drive to in recruitment and first topline XXXX. geographies

plus relapsed that were the patients Moving five tafasitamab long-term treatment DLBCL This results L-MIND with who or presented on at tafasitamab, our from two In refractory targeting ongoing who study, for on or also immunotherapy. years to tafasitamab by were CDXX lenalidomide in more. for showing patients least six monotherapy treated provided September, we followed years. included efficacy

that We this from Additionally, therapy showed the with of the adverse after of events their therapies them that provides patients results the hear with declined confidence response monotherapy. discussing from combination to durability when frequency patients. transition oncologists

XX% the do these are treatment to standard-of-care work the make for does lymphoma. patients. the for as with By previously and for we and disease. of our lenalidomide as R-CHOP those types to not high-intermediate with untreated of DLBCL patients, Beyond have adding tafasitamab a DLBCL. in difference shop, approved potential currently we first-line believe about additional especially exploring well this is patients But tafasitamab patients for current high-risk we indication,

progressing Our have will we the Phase and X Society track Hematology and of year. well. December, tafasitamab we Annual XXXX are inMIND At on the studies, frontMIND data presented this early American in build Meeting on

supporting presented XX including that to and presentations, medical I data oral therapy sessions, this a data to-date. congress potential first-line have featured four in MorphoSys myelofibrosis Our for benefit will say most am proud pelabresib at DLBCL. tafasitamab of the and the in is new be

our from ongoing data will study. we X pelabresib, present For new Phase MANIFEST

safety weeks results combination ruxolitinib response We as pelabresib for of JAK-inhibitor-naive will well XX share highlighting as patients. beyond in durability with results in

evaluating and benefits results biomarker with release disease indicating or also clinical ruxolitinib. will changes, pelabresib following with combination modification, treatment in monotherapy We potential

will we DLBCL. release duration on diagnosed assessing Residual survival data data tafasitamab patients. with This rates, the in response first-line from patients of safety Disease progression-free plus tafasitamab rates in includes final and R-CHOP, lenalidomide and XX-month or Minimal the tafasitamab, study, of overall MRD-negative newly For in short update response

and also a surrogate outcomes We R-CHOP therapy with have of as and serve on presentations frontMIND after will DLBCL. lenalidomide MRD plus endpoint predictor negativity potential tafasitamab in

latest presentations better only to and showcase options solutions efforts. quality and of for committed These first-line potential treatment development are the more We out beyond. patients coming and helping focus research of science

designed let's to as Phase on investigational Last with Tulmimetostat. inhibitors and endometrial ASH meeting. as data. step study presented early next-generation was XXXX patients resulted a an Tulmimetostat as found longer life. encouraging we now well to patients with CPI-XXXX, details tolerated half first-generation unselected results and our and month, Slide to attention the important peripheral from potency, Symposium EZHX was referred longer more generally ongoing for at provides mid-stage ENA proof-of-concept are towards our lymphoma. to well to responses our Tulmimetostat and selected results in inhibitor. upon residence improve Now time on Tulmimetostat, also clinical These patients EZHX X/X turn with target increase known mesothelioma in ovarian in T-cell XX the be monotherapy demonstrating biomarker objective also cancer

Sung we for clinical data over call With over the very pipeline our a deliver the review the and new financials. to turn to now several potential, next are will I of that, We expect about years. excited

Thank you, the to of financial We're results Tim. third XXXX. share quarter pleased for our

Moving to Slide XX.

stated in declining €X.X outside growth royalty of year-over-year were quarter, sequentially. In revenue XXXX the recorded X% we a benefited in $XXX,XXX clinical third quarter, million $XX.X the from of earlier, in On third X% US As third sales sales partner Incyte. million from the Monjuvi quarter basis, saw the we Joe Monjuvi for trial sales. as our

Germany. from mostly partner As has sales thus Incyte far been our stated, recently have

to pricing expect achieves further other in countries We grow as reimbursement royalties Europe. Monjuvi in and

to Total This a quarter the resulted €XX.X million due year XX. same ago. with a sales the cost million was in HI-Bio. to of compared Total revenues compared Cost of year to to €X.X licenses US higher to in €X.X in quarter million increase million Slide mainly out-licensing third ago. from XXXX. was from Moving revenues Monjuvi of third product were million agreements period €XX.X the quarter in specific €X.X sales the third the sales

same to we compared the the Selling investments year-over-year XXXX programs. full operating Recall our driven compared to XXXX. the in the in quarter, decreased the by in third €XX.X expenses of to first primarily €XX.X support clinical expenses the million additional The in of R&D was to XXXX third third for that €XX.X quarter were Monjuvi Turning for to of million €XX.X of year million quarter achievement launch. made million, period expenses. growth the XXXX.

to the million third monitor the transaction for €XX.X ensure Going year-over-year forward, in to third continue our XXXX. quarter with cost €XX.X G&A Constellation acquisition, compared in revenue to is XXXX. it third carefully the million, co-commercialization The quarter due of completed quarter we that expectations. the decrease is will of investment was commensurate the expenses Monjuvi to were in which

million net a third €XXX.X we reported the XXXX, of of €XXX.X consolidated For for year loss a million, ago. compared the of a same period loss to quarter net

end sheet. the funding our balance The to the the from in Royalty $XXX at XXXX of XXXX. proceeds third Pharma. compared includes and of €XXX investments of million Turning from €X.XX balance with bond We ended quarter development cash billion, cash to million

through Our including pivotal for get to the data strong multiple enable will MANIFEST-X. clinical cash us readout milestones, position

sales XX. are net for Slide of Gross XX, our Recall our to product $XX margin net XXXX which October on Turning the guidance summarize million. issued for updated anticipated to on in Monjuvi US expected we product you. are to I'll range for Monjuvi that XX%. to sales approximately be XX% guidance US be

that, €XXX be the R&D million range expenses in back the expected be Jean-Paul. million to would to With of of to expenses like range are €XXX to $XXX We call SG&A the hand €XXX I to million. expect in million. to

into Before value-creating and I conclude are we large opportunities the They mid we Q&A, pace few to to driving a represent focused on would words. remain long-term. summarize, pivotal the with of with go studies enrollment. very over like potential encouraged To our

highly are awareness Monjuvi teams we for open please? strong you. on Operator, call will education, Our engaged commercially, Q&A. driving balance we runway. And sheet a the executing and cash have with and and that, Thank

instructions] question-and-answer of Ladies and the James begin will gentlemen, The Please with ahead. question Stanley. at line session. Quigley the Morgan [Operator first from this comes time, we go

my questions. taking for Hi. Thanks

but we you've with far, to be question cancers Monjuvi thinking the this plan also what be we commentary? the early runway, then sort biomarker always And on tulmimetostat. points tulmimetostat, was the cash about here leaning whether move the will mentioned You in XXXX. before dynamics. of strategy cohorts, any forward? of from and towards, So, And on the was you out the plan? encompass your going program first do cash always data, your idea this have that results second half competitive within the in what And when milestones first And then data think going development patient about which although so are small strategy? and presented optimal you're one when Interesting next

think that most sales you here? from But community, the the of are be impact sales product we So risk academic setting. the the interest going about XX% at community to the CAR-T an you. what coming the extent that mentioned of to is from setting Thank having or the in should

Hi. Tim. is this James,

cancer also prepared triple encouraging we detail, saw and as more tulmi, the at responses, have presented Regarding bit the my data very a mentioned were endometrial in remarks, in patients. And are are mesothelioma nice also and ovarian as that's saw early, These patients. are I we little as on cancer. some well BAPX in slide XX response some gynecological number patients indications, where Those meeting. the selected cell cancers clear rate shown And quite with patients Those unselected selected we ARIDXA patients. PTCL.

running still looking moving the And milestones next the relatively program, to disclosing in the data encouraging the are program, for data study, In we're as enrollment, more we terms early really data. of team matures. and is the

James, And this is Sung.

runway I to think you asked tulmimetostat. a question about respect with cash

provide at seen Phase update point. an And through study the So the fund Phase of one pivotal obviously, we'll this obviously, the to And for II with past have current fund billion the take by we're enough end that data. capitalized then With get study. we progresses over tulmimetostat, than €X step we results pivotal QX, regard window this early is, we're to ongoing we've current well encouraged the beyond this and the II, a comfortably plan we'll cash and at if to time. more collaborative at studies,

Hi, James.

treatment to algorithm. relates will are as the and outlined between and the expect, one how when options new new trying in academia. their seeing these it the the are approvals, academics you community Physicians a into referral As shifts, dynamics new treatment pattern fit understanding with the available is we some competitive would

immunotherapy our So understanding second-line awareness teams build patients. in-practice continue as for only and outpatient the to DLBCL

you Thank it. Got much. very

Butler comes JMP Securities. of the question Please, line next ahead. go The from Jason with

going pulling there do It's but could clinical questions. of in maybe anything thinking than Jason. guess, about anything taking I was to it data, sounds more back, inflect steady I just on like But for our if the the ahead Monjuvi. for we ask should else. more focus you're and readouts. sales maybe expect growth Hi. the was clinical Roy Thanks you actually for upcoming

week any just, company's how remember, I research trajectory? guess, for you the then, sales about you or the planned I changes the said see, think approach you the R&D, on efforts. development a So Thanks. focus to Tim, and And for now,

frontline market as your product This Tim indication. our the of indication for communicate of mentioned II there. this why Monjuvi, evolving, On interesting. times. trial DLBCL will at in see on trial opportunity at is a data to alluded or are for on look the the and you very in III ASH Phase we've the that disclose and the important encourage That's question. I we And look, at ASH we the we so Phase are largest is Jean-Paul. also And Thanks keen couple to frontline what

is we the we've we second-line to here. said, becoming and which been place very say being have But that it's continue current that to a us, engage important more fair on communicate communicating we indication, competitive. for it's think So, that

we look opportunity think, and I for in drive we the again, is, it it's clinical in at our are a DLBCL on next way and to commercial. both So, efforts well process, the continue to first-line

pleased R&D, let I this But, want do can question. address Tim oncology. you weeks in We're a that? with experience very first He's I superior and on leader Tim. Tim, comment with to great the think, on Now

Sure. little inhibitor is a well, trial number tazemetostat. DLBCL MANIFEST multiple of sort and just to really the become tafasitamab, study. indications, a a R&D intriguing lymphoma our the early other follicular best-in-class question. Clearly, bit are to lymphoma. very the EZHX the mentioned my priorities II space in on first-line on study, Hey, be data touched opportunities. in mission And, the there we we and In on of potential is MCL for the I focus very that leader commercial has clear. the already have in MS elated remarks, we are of our enrollment prepared products. molecule Thanks Pelabresib with Roy. going The are myelofibrosis and the hem-onc your a to very

with So all, I all dedicated and very great a what find here is in pipeline. experience very, group a

happy here. super So be to

you. Great. Thank

line James comes Gordon next JPMorgan. the The of from with question go ahead. Please

James Thanks for its two Gordon, JPMorgan. two, questions please. Hello, taking So

was QX But and see XXXX, to in demand we single-digit adjusted the if First into prior the will on in growth growth as one you confident are rolled implies you Monjuvi, QX. for then we the product. just growth single-digit guidance in

going the the terms a product is promising, the asset of continue terms or there And you question, you'd easy it out for further I'm EZHX, fund call some want to there? it to income, would still what be potentially in the that to look second it's of consider say Is growth partnering do US if sales? and would So the outlook in get we milestone the to development to for yourself? plan

Hi, question. this Sung. your first is on James, I'll take

QX, You the four say I'll one. -- with the in we've XXXX. asked dynamics of to quarter in in past in and it's destocking outlook QX, for special and a respect some inventory see QX very in then seen that growth in to are the obviously, about just our build industry some typical there growth implied quarter

those nothing So I has to think regard changed. with dynamics,

something XXXX. Moving us. to at but we're ongoing time, is about, of the this XXXX evaluation introduction additional an Obviously, spoken is year with the that that on evaluating. get This to we'll we've for this competition appropriate

community. growing thing, of Tim are in have we here And away and this is very pursuing several best-in-class asset indications. out hear generation the we from the indications we are the on the couple pertaining to good data is here We a as way from market the the is in that definitely tables excitement think terms what options We was trace release leaps definitely have exciting. the II. EZHX, from in The the we first the What pleased that -- unfolding. James, showing product Phase we're with of the

to larger looking basket ARIDXA smaller solid address unmet and but partnerships tackling would allows all have this segments, a are days, we're the keep at have say trial, And We these market this it's possibilities optionality early territories some We tumors And future. early the rights want which that. could the or in of for we mutation And but again, there here. bit a like it's for imply we which segments lot at open. probably remember, are need. prostate, that to possibilities But also look indications. to

so for focus reasons free when than what for really how want it's are surprise. the much asset even that’s that good so was the we unfold we We good the better anything but doing honestly, depending we We on a like far, asset Pelabresib very data at our And this on going this acquired thought. exciting. with is time, Constellation,

you. Thank

of next [Operator comes Please Floc'h Stifel. Instructions] line ahead. The with the question Victor go from

Should reduction the market was lot taking think my for you It's practice? Thanks you. level and safety. question. Thank candid on or wondering one worried Hi. it's trial, interruption about on a if I the I a very question. do reported a bit comment kind of CPI-XXXX. have be ongoing in could dose was of you dose we that

Hi Victor, this is Tim. Yeah.

So molecule, there's study. already, the as of for heavily a a in pretreated Phase X/X a patients, Phase It's potential. excitement best-in-class the I you heard study lot

we use find its clinical So a therapies, despite population, agents, we're patients continue a seen pleased fact prior patients patient to regarding responding premature, use the and agent the and comparisons very of that in practice degree to safety many premature, quite investigate think, potential are between including this I clinical the other and -- highly agent therapy, with trials is have setting many, later on. It's chemotherapy. the the and making therapies, for bit and prior heterogeneous optimal

would been there assets I interesting data another other acquired happen obviously, an Victor, by could has company. that add with is, that that

is So the field evolving.

there is this to exciting engaging are a meaningful I long and want we're expectations on raise and for much too we under year, I a here very this is what but potentially here, new to way. been quickly trying pretty in say a think don't mined on It's time, we think class. this it's

And I Thanks. great. Okay, a follow-up, have possible. if it's

this a trials trial kind drug. in of ongoing comment lot with with enrollment, because of plamotamab. words a indication there on Just is the Any this few ongoing on

first make or know on if enrollment? we And any results lot. trial? this comments Thanks can expect I should from So when a data you don't

Yeah.

this Victor, driven on we that's cannot a study. by Xencor, the comment know, study So progress so the of is as you

Okay.

Okay, great. Thanks.

question next ahead. Kempen. line Suzanne with the from of The comes Voorthuizen Please van go

side. for Thanks A couple from taking questions. my there. Hi, my

to million Firstly, US from current previously million continuing quarter, And guided peak we’re $XXX you the potential the do you what how for And I of going have the at sales in label from us still for the a Monjuvi. What to is grow forward? needed will believe $XXX for $XX then growth do to materialize in sales here? per future? you gives And around million light you confidence that the look still hover follow-up. in

question. Thanks the is This for Sung.

We're we have now. eight landscape. in more So, us quarters full competitive a obviously, behind

I And evaluate an aspirational. it's say this quite we think, fair obviously, the basis. that So, sales, peak on to it's ongoing

revisit but we this, more in I is aspirational. say, the would So it's but the circumstances, we given now, right constantly something this could about future, talk

accounting the on is P&L have [ph] you provide I with more rate guidance. passed given somewhat Tremfya Pharma, Monjuvi inside for question and has become way better royalties on the Royalty to run another then XX-XX -- But And Understood. complex. of

understand So What is burn an there? your can annual run the rate current you help is basis? on cash us what

mention get than will sufficient we we to Yes. to an comments at our I comfortably point, that's MANIFEST-X. mean, an past can my important earlier inflection more prepared answer way. over question this did in question, to have the with of the I And or end that window. get QX, €X Maybe cash answer most I billion and

funds the from MANIFEST-X. most important That Pharma additional Now $XXX that's again, readout now with development gives the creation drawn towards But value for million we organization right And our Royalty the the recently, opportunity. flexibility. bonds. us funding we're received additional driving on

So recapitalize as know data... multiple pivotal how this based works positive opportunities to significant there on is you industry business the a

enrollment would in add on on see news potentially should readouts us. We and of trial -- the I that mid-term in our catalyst [indiscernible] the still the we mean, lose near-term. we not the giant have ahead on what the of I sight

one the All how looking and the obligations your Phase some due you which Most the bond, moderate stemming II near Monjuvi right. readout Maybe pelabresib. is for XXXX, sales clarification importantly, after with because the other in out, now position? from years income are potential debt at seems quite convertible

how you on plan capture financing colors when to and Some your situation?

Yes.

appreciate question. I that yes, So

on say, convert, XXXX. you yes, the So correctly October due

all some this, time And the think multiple wherewithal open. options. obligations the over billion to We have again, QX to very we're options We here end obviously seriously. we take consider keeping our about of but have with €X at

So funding bond, of at to regard of until I With think anything development the doesn't the I'd leave it ruled that, and haven't that out. to repayment we start like QX XXXX.

a Thanks lot. Understood.

The comes Citi. with next Vineet Please Agrawal from line of question the ahead. go

on question. Thanks for stick first to Yes. Hi. Maybe I'll two. taking my SG&A.

think I from into to is XXXX? there room or mean, out? and costs room think then the it's on we see moved And check starts, has drive similarly, about just could here promotion rate line some I expect earlier. cost in-line per the just trials, June XX XX completion quickly your to to primary Feb that wanted still trial. versus the as clinical if clarification. you second say I there general selling flat you with Is for admin out about down trial Your increases a the how are pelabresib it until be stabilizes here one XXXX event any more in if maybe of purchases And more likely were Did rationalization, And this of next this should given in year-to-date XX% more the million now. I of this squeeze the from the or to for we there quarterly could run kind year can now. inflation? or clinical overheads, at cost about is XQ? should read some or €XX half

XXXX, opening a sales. is question, this QX. $XXX,XXX What is trial statement purchases to trial there no year-ago, The there Vineet, Jean. in were QX your clinical were mentioned my I in Hey, in clinical of answer last

So that impacts your year-over-year comparison.

Okay. just expenses I'll Monjuvi. And selling question then about take your behind first

Listen, out both expect even to as this in well in year, And I to year, us both this. titrated of year-over-year. sequential So a I to want us monitor in continue launch. mentioned basis, both profitable. significant the the we're first prepared you're downward. remarks. on companies. my have you investments first seen full additional And to important And the that's But is removed emphasize as declines something behind right this obviously, to you And make Insights some that put first point would year, and want again we'll being from

a commensurate this to G&A on will our looking our of at to last even G&A, the all we're and it's not beginning With cost with taken to steps constantly at are across in towards front, lot of We expectations. any regard then movements for year to collaboration future. of examine upward optimize the and make the outsized sure functions. continue structure for looking structure, this year cost revenue the we've end And we ways

In we'll fact, And expect carefully. on the guidance any at the wouldn't XXXX very I get appropriate we look at to movements But time. this outsized G&A.

Vineet, is this Tim.

end completion the in-lines, On looking at for XXXX. are primary we date of

Thank you.

to hand would you. I now the conference gentlemen, Julia Thank Neugebauer. and over Ladies

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

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