MARTINSRIED, Germany and MUNICH, Germany, April 22 /PRNewswire-FirstCall/ -- MorphoSys AG (Neuer Markt: MOR), the Munich-based biotechnology company, will today hold a Research and Development Day at its headquarters in Munich, where details behind a new product development strategy will be outlined. The strategy change, which had been signaled previously, describes the steps the Company will take to expand its current activities to include development of proprietary therapeutic antibody products. By partnering therapeutic antibody development at different time points, MorphoSys generates significantly higher value for itself while minimizing its risk profile.
As a part of its new strategy the Company will develop novel fully human therapeutic antibodies against druggable targets, and partner these compounds at the end of phase II clinical trials. In order to gain access to suitable targets, the Company will leverage its technology by using it as currency in transactions with pharmaceutical and biotechnology partners. In the near to medium term MorphoSys intends to focus on the areas of inflammation, cancer and infectious diseases, and aims generate one candidate completing phase II clinical trials per annum in order to create a constant flow of candidates for partnering. The Company's existing partnered research business, to create antibody therapeutics for partners and to conduct target research for partners, will continue. Currently, the company is engaged in 16 ongoing therapeutic antibody programs with its partners, from more than 60 such programs under option.
MorphoSys will present details of its first proprietary therapeutic antibody candidates, MOR101 and MOR102. Both antibodies were developed with the Company's HuCAL® technology and target ICAM-1 (intercellular adhesion molecule-1), also known as CD54. MOR101 will be developed for deep dermal burn. The drug, intended to be developed as a Fab fragment, is expected to meet a significant medical need, as there are currently no drugs in development or on the market, which treat the disease. MOR101 is expected to enter clinical trials in 2003. MOR102 is an IgG antibody, and will target psoriasis, and is anticipated to enter clinical trials in 2004. The psoriasis market is large, and there is substantial demand for improved treatments for the disease. The Company believes MOR102 possesses significant benefit over current approaches to the treatment of psoriasis due to its strong anti-inflammatory properties, and minimal immune suppressive effects. MOR101 and MOR102 may be developed in further indications in the future.
During the presentation, financial guidance will be provided for 2002 and beyond. The Company believes sustained profitability under the new strategy will be achieved by 2006, driven by partnering deals for two of its drug candidates. Headcount is expected to increase from approximately 115 in 2002 to 170 by 2006. Commercial revenues are to be generated by therapeutic antibody deals and target research deals. The Company's financing strategy includes two equity-based deals over the next two years. Based on the current level of cash and planned cash inflows from partners, the Company expects to be able to sustain operations through Q4 2004 without raising further funds.
For the year 2002, the following guidance is provided:
Revenues approx. Eur 16 mil.
R&D expenses approx. Eur 26 mil.
S, G&A expenses approx. Eur 15 mil.
Stock based compensation approx. Eur 5 mil.
Cash balance year end approx. Eur 40 mil.
Dr. Simon Moroney, Chief Executive Officer of MorphoSys, commenting on the day said: ``Today marks the beginning of a new chapter in the success of MorphoSys. The new product-based strategy enables significantly higher shareholder value creation for MorphoSys than was possible as a technology service-provider. We have initiated some very exciting programs in house, are making excellent progress in our ongoing partnerships and expect to sign additional deals as we go forward. We look very confidently to the challenges ahead.''
A conference call will be conducted April 22 at 13:00 CEST at the company's headquarters in Munich. Real-time listening +49 69 27 11 34 00
About MorphoSys:
MorphoSys develops and applies innovative technologies for the production of synthetic antibodies, which accelerate drug discovery and target characterization. Founded in 1992, the Company's proprietary Human Combinatorial Antibody Library (HuCAL®) technology is used by researchers worldwide for human antibody generation. The Company currently has licensing and research collaborations with Bayer (Berkeley, California/USA), Biogen Inc. (Cambridge, Massachusetts/USA), Bristol-Myers Squibb (Wilmington, Delaware/USA), Centocor Inc. (Malvern, Pennsylvania/USA), Eos Biotechnology Inc. (San Francisco, California/USA), GPC Biotech AG (Munich/Germany), Hoffmann-La Roche AG (Basel/Switzerland), ImmunoGen Inc. (Cambridge, Massachusetts/USA), Oridis Biomed GmbH (Graz/Austria), ProChon Biotech Ltd. (Rehovot/Israel), Schering AG (Berlin/Germany) and Xoma Ltd. (Berkeley, California/USA). For further information please visit the corporate website at: morphosys.com.
Statements included in this press release which are not historical in nature are intended to be, and are hereby identified as, ``forward-looking statements'' for purposes of the safe harbour provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including ``anticipates,'' ``believes,'' ``intends,'' ``estimates,'' ``expects'' and similar expressions. The company cautions readers that forward-looking statements, including without limitation those relating to the company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Factors that may affect future operations and business prospects include, but are not limited to, clinical and scientific results and developments concerning corporate collaborations and the company's proprietary rights and other factors described in the prospectus relating to the company's recent public offering... |
