MorphoSys AG

Full-year 2023 total revenues were EUR 238.3 million versus EUR 278.3 million in 2022. Consolidated net loss was EUR 189.7 million versus a net loss of EUR 151.1 million in 2022. Net U.S. sales for Monjuvi grew to $92 million for the full year 2023. R&D expenses were EUR 283.6 million versus EUR 297.8 million in 2022; selling expenses were EUR 81.4 million versus EUR 92.4 million; G&A expenses were EUR 65.8 million versus EUR 60.1 million; and total cost of sales were EUR 58.4 million versus EUR 48.6 million. The company ended 2023 with cash and investments of EUR 680.5 million, including proceeds from EUR 102.7 million in gross funding. For 2024, MorphoSys now expects R&D expenses of EUR 170 million to EUR 185 million and SG&A expenses of EUR 90 million to EUR 105 million. Management said the prior 2024 guidance could not be maintained after the tafasitamab sale and was revoked.

Jean-Paul Kress framed 2023 as a “critical and exciting” year in which MorphoSys over-delivered on priorities, advanced its oncology pipeline, and strengthened its finances enough to enter into the Novartis business combination agreement. He emphasized that pelabresib remains the top priority, both for first-line myelofibrosis approval and for possible expansion into other myeloid diseases. His tone was confident on the deal and on the pipeline, repeatedly stressing that the acquisition process is progressing steadily and that the company expects no issues in closing.

Lucinda Crabtree focused on the year-over-year financial movements and the post-tafasitamab transition. She said Monjuvi U.S. sales reached $92 million, full-year revenue was EUR 238.3 million, and 2023 costs reflected higher write-downs in cost of sales, lower R&D and selling spend, and higher G&A due to share-based payment expense tied to the stock price. She also noted cash and investments of EUR 680.5 million, a cash runway into early 2026 including convertible debt repayment, and new 2024 expense guidance of EUR 170 million to EUR 185 million for R&D and EUR 90 million to EUR 105 million for SG&A.

Analysts asked about the timing of the Novartis closing, antitrust approvals, and who would submit the pelabresib NDA. Management reiterated that it expects the deal to close in H1 2024, said Germany and Austria have cleared the transaction and no other jurisdictions are expected to be needed, and stated the NDA would be submitted by MorphoSys unless the deal closes first. On the regulatory side, management said a pre-NDA meeting is not something they publicly discuss in detail, but described it as a typical formality after positive Phase 3 data and said the program remains on track for mid-2024 filings.