Dear Shareholders,
During the second quarter of 2010, MorphoSys’s partnered and proprietary pipeline saw significant progress with one partnered program advancing into phase II, two new partnered programs entering clinical trials and the addition of one Phase 1 compound to our own portfolio.
On the partnered side of MorphoSys’s therapeutic business, two partners, namely Novartis and Centocor Ortho Biotech, advanced HuCAL-based antibody programs into clinical trials. Having demonstrated a first clinical proof-of-concept, one additional Novartis program has progressed into phase 2. Altogether, nine of our partnered programs are currently in the clinic, four of which already in phase 2. Two to four more antibody programs could enter the clinic during the second half of the year.
Progress on the partnered side of our business was matched by progress in our proprietary development activities. Most significantly, MorphoSys in-licensed a very promising anti-CD19 program from Xencor, Inc. which is in phase 1 clinical trial in chronic lymphocytic leukemia (CLL).
On a Group level, revenues for the first six months ended June 30, 2010 were € 43.5 million, a 15% increase over the same period in the previous year. Operating profits came in at € 8.3 million and it is anticipated that expenses for proprietary product development will increase in the next two quarters of the year.
Thank you for your continued interest in and support of MorphoSys.
Sincerely yours,
Dave Lemus
Chief Financial Officer
MorphoSys AG