A Broadening Scope with Collaboration of Genefrontier in Japan

MorphoSys AG has announced the initiation of a therapeutic target sourcing collaboration in Japan with its Tokyo-based partner GeneFrontier Corporation. The expansion of the existing alliance with GeneFrontier aims to increase MorphoSys's access to innovative druggable therapeutic targets sourced from leading Japanese research institutes and universities, which will in turn further strengthen MorphoSys's proprietary drug development capabilities. Financial details of the agreement were not disclosed.

Under the terms of the agreement, research institutes in Japan will be offered access to HuCAL-based research antibodies against novel disease-related target molecules in exchange for commercialization rights. Antibodies for selected projects will be generated by GeneFrontier using MorphoSys's proprietary HuCAL antibody technology at its research laboratories in Tokyo. MorphoSys will have access to all research results and data around the selected research programs and the option to secure worldwide rights on such antibody programs.

In September 2004, MorphoSys and GeneFrontier signed a strategic marketing agreement to access the Japanese life science market. To date, this marketing agreement has resulted in three alliances with the leading Japanese pharmaceutical groups Astellas, Daiichi Sankyo and Shionogi. In 2006, both parties expanded their marketing alliance to cover the generation of HuCAL-derived fully human antibodies for proteome research and target validation together with a renowned Japanese research organization as well as commercialization of any resulting antibody products.

"This alliance builds on two collaborations we already have in place with leading research Institutes, including the Burnham Research Institute in the U.S. Within our very successful collaboration in Japan, GeneFrontier will now act as a hub and allow us to benefit from research results of multiple leading research institutes," commented Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. "We are convinced that building a network of relationships with leading, medically-focused academic institutes is a productive way of accessing the therapeutic targets of tomorrow. Access to these innovative new drug targets will further strengthen MorphoSys's proprietary drug development capabilities."