MorphoSys Announces Publication of First MOR103 Data

MOR103 anti-GM-CSF Antibody Shows Subpicomolar Affinity for its
Target Molecule

MorphoSys AG (FSE: MOR; Prime Standard Segment, TecDAX) announced
today the publication of a first data package for its most advanced
proprietary drug development program MOR103, a fully human HuCAL
antibody directed against GM-CSF, in the journal "Molecular
Immunology".

The data presented show that MOR103 is able to block disease-relevant
processes such as GM-CSF dependent proliferation and signal
transduction in vitro. Additionally, the publication describes that
MorphoSys was able to achieve a 5,000-fold increase in affinity and a
2,000-fold increase in potency compared to the parental antibody
using its established optimization technology. With a resulting
affinity - or binding strength - of 400 femtomolar, MOR103 represents
the first known anti-GM-CSF agent with a subpicomolar affinity for
its target. Targeting of antigens, which are present only at low
concentrations in patients such as GM-CSF, will require antibodies
with low picomolar to subpicomolar affinities in order to reach
efficacy in vivo at low dose levels. The high affinity is also
expected to lead to a beneficial dosing regimen and cost of goods
advantage.

MOR103 is currently tested in a Phase 1 clinical trial to assess
safety, tolerability and the pharmacokinetics of this fully human
high affinity anti-GM-CSF HuCAL antibody. MorphoSys intends to
present pre-clinical data for MOR103 at the HAH - Human Antibodies
and Hybridomas Conference on November 12, 2008 in New York, USA, as
well as at the IBC's 19th Annual International Antibody Engineering
Conference on December 9, 2008 in San Diego, USA.

"We are very pleased with the results we have seen so far with MOR103
and the generation process stands out as a showcase for MorphoSys's
antibody generation capabilities using our HuCAL technology,"
commented Dr. Marlies Sproll, Chief Scientific Officer of MorphoSys.
"While the antibody's affinity is merely one feature which
influences its capability as a drug we believe based on the overall
data we have generated so far that MOR103 represents a very promising
therapeutic candidate in our pipeline."

For further information please contact: Dr. Claudia Gutjahr-Löser,
Head of Corporate Communications & Investor Relations, Tel: +49 (0)
89 / 899 27-122, gutjahr-loeser@morphosys.com or Mario Brkulj,
Manager Corporate Communications & Investor Relations, Tel: +49 (0)
89 / 899 27-454, brkulj@morphosys.com

About MOR103 to treat RA:
Rheumatoid arthritis (RA) is traditionally considered a chronic,
inflammatory autoimmune disorder that causes the immune system to
attack the joints and affects in particular a membrane, called
synovium, which lines each movable joint. It is a disabling and
painful inflammatory condition, which can lead to substantial loss of
mobility due to pain and joint destruction. As a systemic disease, RA
often affects extra-articular tissues throughout the body including
the skin, blood vessels, heart, lungs, and muscles. The disease
affects approximately 4-6 million people worldwide. In patients
suffering from RA, white blood cells move from the bloodstream into
the synovium. Here, these blood cells appear to play an important
role in causing the synovial membrane to become inflamed. The
HuCAL-based antibody MOR103 targets GM-CSF as a means to treat
inflammatory diseases such as psoriasis, multiple sclerosis (MS),
chronic obstructive pulmonary disease (COPD), asthma, and especially
RA. The granulocyte macrophage colony-stimulating factor (GM-CSF)
stimulates stem cells to produce granulocytes and other macrophages
and subsequently activates these differentiated immune cells. GM-CSF
is part of the natural immune and inflammatory cascade but has also
been identified as an inflammatory mediator in autoimmune disorders
like RA leading to an increased production of pro-inflammatory
cytokines, chemokines and proteases and thereby ultimately to
articular destruction. By neutralizing GM-CSF the HuCAL-based
antibody MOR103 reduces undesired proliferation and activation of
inflammatory granulocytes and macrophages and intervenes in several
pathophysiological pathways. More information and picture material is
available at: http://www.morphosys.com/en/mor103

About MorphoSys:
MorphoSys is a publicly traded biotechnology company focused on the
generation of fully human antibodies as a means to discover and
develop innovative antibody-based drugs against life-threatening
diseases. MorphoSys's goal is to establish HuCAL as the technology of
choice for antibody generation in research, diagnostics and
therapeutic applications. The Company currently has therapeutic and
research alliances with the majority of the world's largest
pharmaceutical companies including Boehringer Ingelheim,
Centocor/Johnson & Johnson, Novartis, Pfizer and Roche. Within these
partnerships, more than 50 therapeutic antibody programs are ongoing
in which MorphoSys participates through exclusive license and
milestones payments as well as royalties on any end products.
Additionally, MorphoSys is active in the antibody research market
through its AbD Serotec business unit. The business unit has
operations in Germany (Munich), the U.S. (Raleigh, NC) and U.K.
(Oxford). For further information please visit
http://www.morphosys.com/

HuCAL(R) and HuCAL GOLD(R) are registered trademarks of MorphoSys AG

This communication contains certain forward-looking statements
concerning the MorphoSys group of companies. The forward-looking
statements contained herein represent the judgment of MorphoSys as of
the date of this release and involve risks and uncertainties. Should
actual conditions differ from the Company's assumptions, actual
results and actions may differ from those anticipated. MorphoSys does
not intend to update any of these forward-looking statements as far
as the wording of the relevant press release is concerned.
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