The MorphoSys Share

The 2012 financial year was extraordinarily successful for MorphoSys. Based on excellent corporate development, MorphoSys was the second-best performer in the TecDAX*, with a share price increase of 67 %. In the reporting year, the share price reacted particularly well to positive news on proprietary drug development programs such as MOR103. The TecDAX  increased by 18 % in the same period and the NASDAQ Biotechnology Index rose by 30 %.

In the USA capital market, sentiment towards biotechnology companies was especially positive, where biotechnology shares have been among the best investments over the last 18 months. The reason for this lies in rich development pipelines and various approvals – five out of ten of the top-selling drugs are now of biotechnology origin. MorphoSys therefore further expanded its investor relations activities in the US market during 2012.

FIG. 5 /// THE MORPHOSYS SHARE (1 JANUARY 2012 = 100 %)

TAB. 7 /// KEY DATA FOR THE MORPHOSYS SHARE (AS OF 31 DECEMBER OF EACH YEAR)

in € million (if not stated otherwise)   2012   2011   2010   2009   2008  
Total Stockholdersʼ Equity 202.0 197.1 185.9 173.9 162.0
Number of Shares Issued (Total) 23,358,228 23,112,167 22,890,252 22,660,557 22,478,787
Market Capitalization 685 405 424 386 421
Closing Price in € (Xetra) 29.30 17.53 18.53 17.04 18.75
Average Daily Trading Volume (in € million) 1.6 1.8 1.1 1.3 1.9
Average Daily Trading Volume
(in % of Share Capital)
0.28 0.38 0.26 0.34 0.57

LIQUIDITY AND INDEX MEMBERSHIP

In 2012, the average daily trading volume of MorphoSys’s stock slightly decreased to € 1.6 million, compared to an average daily trading volume of € 1.8 million in the previous year. On the TecDAX, the average number of shares traded sank by almost 50 %. However, MorphoSys further strengthened its position in the TecDAX index, which includes the 30 largest technology stocks on the Frankfurt Stock Exchange. At the end of 2012, the Company was able to improve its position based on market capitalization  to 12th place (year-end 2011: rank 14) and its position based on trading volume to 14th place (year-end 2011: rank 20).

SHARE CAPITAL

The share capital increased to 23,358,228 shares resulting from the exercise of 246,061 stock options and convertible bonds. Up to 2010, MorphoSys issued stock options and noninterest- bearing convertible bonds as part of its employee participation program. In 2011, this was switched to a performance share plan. The Company repurchases shares for this on an annual basis. The program is described in detail from page 67 of this annual report. During 2012, no new stock options or convertible bonds were issued to employees or management.

GROWING INTERNATIONAL INVESTOR BASE

In the reporting year, MorphoSys received various notifi cations pursuant to sec. 21, sec. 25 and sec. 26 of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG). These were published on our Website at Shareholder Structure.

The number of international investors has once again increased. Massachusetts Mutual Life Insurance (Oppenheimer Funds) is currently the largest single investor with a 7.3 % share. In the course of the year, the Biotech Value Fund (BVF) also acquired a share of 6.1 %.

A current overview of the shareholder structure can be requested on the Company’s Website at Shareholder Structure.

INVESTOR RELATIONS ACTIVITIES

In the 2012 financial year, MorphoSys intensifi ed its dialog with the capital market. MorphoSys presented itself at 14 international investor conferences and a large number of roadshows and one-on-ones in Europe and the USA. The greatest interest came from US-based investors, where a large number of specialized healthcare investors are located. Topics such as the advancement and success probability of drug programs as well as the further development of new technology platforms resonated most with investors.

At the end of the year, ten analysts covered MorphoSys (2011: eleven analysts). In the 2012 financial year, WestLB terminated its business activities and thus also its reporting on MorphoSys.