MorphoSys AG (Frankfurt: MOR; Prime Standard Segment, TecDAX) today announced a cross license agreement with Eli Lilly and Company on the use of certain recombinant protein technologies. Under the agreement, MorphoSys receives a license under the Kauffman patent estate to generate and screen certain recombinant peptide and protein libraries and to commercialize any resulting products. Financial terms were not disclosed. The agreement also provides Lilly access to the MorphoSys HuCAL GOLD® technology for Lilly's internal research & development programs. For any therapeutic antibodies Lilly develops under the agreement, it will pay MorphoSys exclusive licensing fees, success fees, milestone payments and royalties on end products. This agreement is part of a settlement to resolve patent litigation initiated by Applied Molecular Evolution (AME), a wholly owned subsidiary of Lilly, involving several U.S. patents of the Kauffman patent family. The settlement agreement covers MorphoSys’ and its partners’ past, present and future use and commercialisation of all versions of its HuCAL® libraries, as well as its TRIM technology. The agreement also gives Lilly access under agreed terms to Antibodies by Design, MorphoSys's business unit focusing on development of custom monoclonal antibodies for non-therapeutic purposes.

“We are very pleased to announce today’s cross licensing agreement, which gives us greater flexibility in planning future generations of our proprietary HuCAL® antibody libraries” commented Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. “We welcome Lilly’s decision to join our stable of partners and look forward to working with them in a longterm partnership to develop innovative HuCAL® based antibody drugs.”