EQS-Ad-hoc: MorphoSys AG / Key word(s): Forecast
Ad hoc: MorphoSys AG announces preliminary Monjuvi sales for 2022, publishes financial guidance for 2023 and reduces financial liability
05.01.2023 / 11:33 CET/EST
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Planegg/Munich, January 05, 2023
Ad hoc: MorphoSys AG announces preliminary Monjuvi sales for 2022, publishes financial guidance for 2023 and reduces financial liability
- Preliminary Monjuvi net product sales in the US in 2022 of US$89.4 million (€84.9 million)
- Expected Monjuvi net product sales in the US in 2023 to be in the range of US$80 million to US$95 million
- Preliminary unaudited financial liability from collaboration with Incyte of approximately €220 million, representing a reduction of €360 million
MorphoSys AG (FSE: MOR; NASDAQ: MOR) today announces preliminary full-year 2022 net product sales of Monjuvi® in the US and publishes financial guidance for 2023. In this context, MorphoSys is reducing its financial liability from the collaboration with Incyte and recognizes corresponding financial income .
Preliminary US net product sales of Monjuvi (tafasitamab-cxix) for the fourth quarter of 2022 are US$25.3 million (€24.0 million) and for the full year 2022 are US$89.4 million. US$ (€84.9 million). Fourth quarter and full year 2022 results will be released on March 15, 2023. For the full year 2023, MorphoSys expects net product sales for Monjuvi in the US to be in the range of US$ 80 million to US$ 95 million.
Due to the adjusted sales expectations for Monjuvi, the balance sheet item “Financial liabilities from collaborations” is reduced from €580 million (as of September 30, 2022) to around €220 million (as of December 31, 2022; unaudited). The difference between the two amounts is recognized in financial income. The balance in “Financial liabilities from collaborations” reflects an accounting view of expected future profits on net sales of Monjuvi’s U.S. product sales for the treatment of relapsed or refractory diffuse large B-cell lymphoma (R/R DLBCL) that MorphoSys owes to his partner Incyte. The reduction in financial liabilities from collaborations has no impact on cash and cash equivalents.
Financial guidance for the full year 2023:
| Financial forecast 2023 | Comments on the 2023 financial outlook | |
| Monjuvi net product sales in the US | $80 to $95 million | 100% of Monjuvi’s US net sales are recognized in MorphoSys’s income statement and the related profit/loss is split equally between MorphoSys and Incyte. |
| Gross margin for Monjuvi US net product sales | 75% bis 80% | 100% of Monjuvi’s cost of sales in the US is recognized in MorphoSys’s income statement and the related profit/loss is split equally between MorphoSys and Incyte. |
| Research and development (R&D) expenses | €290 to €315 million | A slight increase over 2022 is expected in 2023 due to the expansion of the Pelabresib development program. |
| Selling, Administrative and General Expenses | €140 to €155 million | 45% to 50% of mean selling, general and administrative expenses represent US selling expenses of Monjuvi, 100% of which is recognized in MorphoSys’s income statement. Incyte reimburses MorphoSys for half of these distribution costs. |
Additional information on the 2023 financial outlook:
- The Tremfya royalties continue to be reported as revenue excluding cost of sales in MorphoSys’s income statement. However, these royalties will not provide cash to MorphoSys as 100% of the royalties will be passed on to Royalty Pharma.
- MorphoSys expects to receive royalties for Minjuvi®– Receive sales outside of the United States.
- MorphoSys does not expect any significant cash revenues from milestone payments in 2023.
- MorphoSys anticipates sales of tafasitamab commercial and clinical material outside the US to its partner Incyte. The proceeds from these deliveries are reported in MorphoSys’s income statement under the category “Royalties, Milestones and Other”. These sales result in zero gross profit/margin. Therefore, MorphoSys does not provide a forecast for these sales.
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END OF AD HOC NOTICE
Information and explanations of the issuer to this communication:
About MorphoSys:
At MorphoSys we have a clear mission: We want to enable people with cancer to live better and longer lives. As a global, commercially-focused biopharmaceutical company, we use cutting-edge science and technology to discover, develop and bring novel cancer medicines to patients. MorphoSys is headquartered in Planegg, Germany and conducts its US operations from Boston, Massachusetts. You can find more information at www.morphosys.de. Follow us on LinkedIn and Twitter.
Monjuvi® is a registered trademark of MorphoSys AG.
Forward-Looking Statements
This release contains certain forward-looking statements about the MorphoSys group of companies. They involve known and unknown risks and uncertainties that could cause the actual results, financial condition, liquidity, performance or achievements of MorphoSys or the results of the industry to differ materially from historical or future results, financial condition, liquidity , performance or achievements expressed or implied by such forward-looking statements. Even if MorphoSys’s results, performance, financial condition and liquidity and the development of the industry in which MorphoSys operates are consistent with the forward-looking statements, they are not indicative of results or developments in future periods. Factors that could lead to deviations include the fact that MorphoSys’s expectations may not be accurate, the inherent uncertainties related to developments in competition, clinical trials and product developments and regulatory approval requirements, dependence on collaborations with third parties, the estimate the commercial potential of MorphoSys’s development programs; and other risks identified in the risk factors in MorphoSys’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. Given these uncertainties, the reader is cautioned not to place undue reliance on such forward-looking statements. These forward-looking statements speak only as of the date of this document. MorphoSys expressly disclaims any obligation to update the forward-looking statements contained in this document to conform them to changed expectations or to changed events, conditions or circumstances on which these statements are based or which affect the likelihood that actual results will differ from those contained in the forward-looking statements, unless required to do so by law or regulation.
For more information please contact:
dr Julia Neugebauer
Head of Investor Relations
Tel: +49 (0)89 / 899 27 179
julia.neugebauer@morphosys.com
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