One deal, many MOR antibodies

Back to the Future

One deal, many MOR antibodies

MorphoSys AG expects its new 10-year deal with Novartis AG to be transformational, providing the antibody technology company with the financial security and strategic flexibility to drive its development as an independent drug company while marking an end of its need to continually find new partners for its platform technologies. For Novartis, the deal will provide a core capability that will enable it to develop biologics in-house, freeing it from its past reliance on in-licensing.

Several times over the past 15 years, Simon Moroney, founder and CEO of MorphoSys (FSE:MOR, Martinsried, Germany), has rethought his strategy to build a sustainable business underpinned by the company's antibody platforms. But despite numerous course corrections, the stock has lagged its peers (see "MorphoSys Chronicles," A6).

Moroney has explored a number of business models, including a fee-for-service library business and a therapeutics/platform hybrid. He then went back to a licensing model to discover and develop therapeutic antibodies for partners, added a contract services business, and then added once again a plan to develop products in-house.

While the company has started to turn a small profit in recent years, its potential to grow sustainably and substantially has been predicated on its ability to seal many deals (see "Turning the Corner").

All that chasing around to find new partners will now come to an end, Moroney told BioCentury, following this month's 10-year multi-program alliance with Novartis (NVS; SWX:NOVN, Basel, Switzerland), with $600

Read the full 2427 word article

How to gain access

Continue reading with a
two-week free trial.