Martinsried/Munich, Poole/U.K. and Brentwood (New Hampshire)/U.S.A., January 20, 2005
MorphoSys Acquires Biogenesis Group in U.K. and U.S.A. Acquisitions Position MorphoSys within Top 5 of European Research Antibody Suppliers
MorphoSys AG (Frankfurt Stock Exchange: MOR; Prime Standard Segment, TecDAX) today announced the acquisition of two privately held companies, Biogenesis Ltd. (Poole/U.K.) and its sister company Biogenesis Inc. (Brentwood, New Hampshire/U.S.A.). With more than 20 years of experience in antibody development and manufacturing, and a comprehensive antibody catalogue, the combined Biogenesis group represents one of the larger European suppliers of antibodies to the life sciences research community. Research antibodies are a fast growing market accounting for global sales in excess of USD 800 million in 2004. Combined with MorphoSys’ existing efforts in this area, the acquisition will establish MorphoSys as one of the top 5 European suppliers of research antibodies. The final agreements, signed on January 20, 2005, specify the purchase of 100% ownership of Biogenesis Ltd. and Biogenesis Inc. by MorphoSys for GBP 5.25 million, less net debt of approximately GBP 700,000, in cash. The two Biogenesis companies will become wholly owned subsidiaries of MorphoSys AG.
The acquisition of the Biogenesis group provides MorphoSys with immediate access to new market channels for its innovative HuCAL® antibody technology. As the HuCAL® technology provides a quantum leap in speed and flexibility over traditional antibody generation, the combined company will be able to deliver highly specific recombinant antibodies to customers significantly faster than existing animal-based methods. MorphoSys expects this to greatly increase the value of Biogenesis´ current offerings. MorphoSys will continue to support Biogenesis’s pre-existing portfolio of research products and at the same time utilize all opportunities to further market the HuCAL® technology to Biogenesis’s worldwide customer and global distributor network.
MorphoSys AG Chief Executive Officer Simon Moroney, and Chief Financial Officer Dave Lemus retain their current respective positions within the enlarged MorphoSys group of companies. The acquired Biogenesis companies will be integrated with MorphoSys’ existing research antibody business unit, Antibodies by Design. The enlarged research antibodies unit will be led by Dieter Lingelbach, currently Senior Vice President at MorphoSys AG and head of Antibodies by Design. The new unit will run alongside the existing therapeutic antibodies unit, which comprises the largest part of the MorphoSys business.
John Coward, the present Managing Director of Biogenesis Ltd., will become Chairman of the U.K. subsidiary and Joan Poehlman, current President of Biogenesis Inc., will serve as President of the U.S.A. subsidiary.
The acquisition of Biogenesis is an important strategic step for MorphoSys, one of the leading sources of next generation antibody therapeutics, in establishing its innovative HuCAL® technology in new antibody market segments. It follows the establishment of the Antibodies by Design unit in late 2003 to serve the research and diagnostics markets with custom monoclonal antibodies. While the therapeutic antibodies unit remains the key driver of the MorphoSys business, the expanded research antibodies unit becomes a more significant second pillar in the company’s overall strategy.
“Today’s transaction will help MorphoSys build the market for its HuCAL® technology by strengthening our position outside our core therapeutic antibody segment,” commented Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. “The acquisition of Biogenesis brings us immediate access to well-established sales channels plus substantial know-how in the research and diagnostics markets. Combining this with our proprietary technology will massively expand our sales & marketing reach and takes us one step closer to our goal of establishing HuCAL® as the technology of choice for antibody generation in all market sectors. ”
“We are very excited to become a part of the MorphoSys group,” commented John Coward, Managing Director of Biogenesis Limited. “We are convinced that new technology for generating antibodies offers the best avenue for growth in this sector, and as a leader in this field, MorphoSys is the ideal partner for the further development of our business. The combination of the two companies will be highly synergistic and creates an international antibody supplier with a unique profile.”