MorphoSys AG (Frankfurt Stock Exchange: MOR; Prime Standard Segment) announced today an early expansion of its therapeutic antibody collaboration with Pfizer Inc., until the end of 2011. Under the extended agreement, Pfizer has the option to begin new therapeutic antibody projects with MorphoSys resulting in an increased level of programs to be performed within the collaboration. As a result, the potential value for MorphoSys in research funding and potential developmental milestone payments increases to more than US$ 100 million, not including royalties. Additionally, the extension triggers a one-off payment from Pfizer to MorphoSys. Further financial details were not disclosed.
The cooperation agreement, originally signed in December 2003, was scheduled to end in December 2008. Within the framework of the extended agreement, MorphoSys will continue to use its HuCAL GOLD library to generate therapeutic antibodies against multiple new targets from Pfizer. Pfizer will carry out the preclinical and clinical development and the subsequent marketing of resulting products. MorphoSys stands to receive an increased level of research funding as well as milestone and royalty payments on any antibody products derived from the collaboration. Today, the collaboration encompasses five active therapeutic antibody programs.
'We are very pleased by the successful progress in our collaboration with Pfizer and their decision to intensify this alliance, which will now run until 2011,' said Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. 'The year 2006 in review has been very successful for MorphoSys. Today's news represents the fourth substantial expansion of an existing deal for MorphoSys in 2006. In combination with three new commercial partnerships signed during the year, this development clearly demonstrates the strong performance of our partnered therapeutic business.'