A combination of cost reductions, entering new markets, and acquisitions with the aim of compensating for far-reaching patent losses is paying off for pharmaceutical companies. For the year 2014, industry experts and investors alike expect pharmaceutical manufacturers to see a return to higher revenues. According to the market observer IMS Health, the biopharmaceutical sector is an important growth driver and already accounts for around 23% of the expenditures for statutory health insurance. Acquisitions, especially those involving innovative biotechnology firms, should continue to strengthen the development pipelines and, over the longer term, generate rising profits for the large pharmaceutical companies. The pharmaceutical industry is gaining additional momentum from emerging markets such as Brazil, Russia, India, and China. With growing affluence, higher life expectancy, and improved access to health services in these countries, the number of diagnosed cases of diabetes, hypertension, and cancer, and thus the need for appropriate drugs, is rising.

MorphoSys is ideally positioned in this environment. The pipeline of innovative antibody drug candidates based on the Company's proprietary technologies, developed both independently and in collaboration with partners, is among one of the broadest in the industry and provides for sustainable business success. Thanks to its excellent financial position, MorphoSys is able to continually expand its business activities through investments in proprietary drug and technology development.


MorphoSys's initial financial guidance for the fiscal year 2014 was published on 28 February 2014. MorphoSys expected revenues to range from € 58 million to € 63 million and an EBIT ranging from € -11 million to € -16 million. Investments in proprietary products and technologies were expected to be in the range of € 36 million to € 41 million.

MorphoSys updated its EBIT guidance for 2014 on 22 October 2014, and now expects an EBIT in the range of € -5 million to € -8 million (from previously € -11 million to € -16 million). Reasons for the adjustment were the receipt of a milestone payment from Janssen, which directly affects the profit line, as well as a partial shift of proprietary development expenses to 2015. The Company’s management expects revenues at the upper end of the previously communicated guidance range of € 58 million to € 63 million.

The statements regarding the strategic outlook, the expected operational and human resources developments, future research and development, and the dividend policy made in the 2013 Annual Report on pages 69 to 72 continue to apply.