arYla Opens up New Ways to Optimize Therapeutic and Diagnostic Antibodies

MorphoSys AG (FSE: MOR; Prime Standard Segment, TecDAX) announced today the launch of a novel antibody optimization platform called arYla. The Company plans to use arYla to accelerate antibody optimization, with the goal of generating superior therapeutic and diagnostic candidates faster and more cost-effectively than is currently possible. arYla will be used to optimize a range of properties critical to the successful development of a therapeutic or diagnostic antibody. The arYla technology results from the combined technology platforms of MorphoSys and recently acquired Sloning BioTechnology.

'We see many therapeutic and diagnostic antibody programs in our industry in which shortcomings in the antibody hinder the development of a successful product,' commented Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. 'arYla gives us a unique and proprietary means of optimizing antibody properties, which we expect to lead to better products - both therapeutics and diagnostics - faster than is possible today. We intend to apply the technology in our own programs and within existing as well as new partnerships, and are already seeing considerable interest in the pharmaceutical industry.'

With the arYla technology, MorphoSys combines more than 15 years of experience in design and selection of therapeutic antibodies with the unique library synthesis capabilities acquired with Sloning in October 2010. arYla brings significant advantages to antibody optimization especially in terms of speed and flexibility. The new technology enables individualized antibody libraries to be made with unprecedented speed and precision. arYla will be used to make diverse, customized sub-libraries based on an existing lead compound, incorporating many millions of pre-defined variations at precisely determined sites within the antibody structure. In this way, antibodies optimized for a multitude of properties, including affinity, specificity, humanness, solubility, stability, production yield and others, can rapidly be identified.

More information can be found on www.morphosys.com/aryla

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About MorphoSys:
MorphoSys is an independent biotechnology company that develops novel antibodies for therapeutic, diagnostic and research applications. The Company's HuCAL technology is one of the most powerful methods available for generating fully human antibodies. By successfully applying this and other proprietary technologies, MorphoSys has become a leader in the field of therapeutic antibodies, one of the fastest-growing drug classes in human health-care. Through its alliances with some of the world's leading pharmaceutical companies, MorphoSys has created a pipeline of more than 60 drug candidates. The Company is expanding its drug pipeline by adding new partnered programs, and by building a portfolio of fully-owned therapeutic antibodies. For its proprietary portfolio, the Company is focused on the areas of oncology and inflammation. Its most advanced program MOR103, a first-in-class, fully human antibody against GM-CSF, is currently being tested in a Phase Ib/IIa trial in rheumatoid arthritis patients. Via its business unit AbD Serotec, MorphoSys is expanding the reach of its technologies in the diagnostics and research markets. MorphoSys is headquartered in Munich, Germany and listed on the Frankfurt Stock Exchange under the symbol 'MOR'. For further information, visit http://www.morphosys.com/

HuCAL®, HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay® and RapMAT® are registered trademarks of MorphoSys. arYlaTM is a trademark of MorphoSys.