MorphoSys AG (Frankfurt Stock Exchange: MOR; Prime Standard Segment) andNovartis AG (NYSE: NVS) today announced a significant strategic collaboration todiscover and develop antibody-based biopharmaceuticals as therapeutic agents,in order to address unmet medical need across a variety of diseases. MorphoSysbrings validated and robust human antibody technologies (HuCAL GOLD(R)) toNovartis' new strategic research directions, building a collaboration that willidentify and develop novel therapeutic agents rapidly and efficiently.
MorphoSys scientists will work directly with Novartis scientists across theglobal sites of the Novartis Institutes for BioMedical Research (NIBR),including the new world headquarters in Cambridge, MA, USA. The MorphoSys HuCALGOLD(R) technology will be an integral part of Novartis' drug discovery anddevelopment efforts, with the goal of identifying and developing multiple HuCALGOLD(R)-derived therapeutic antibodies against many different targets. Duringthe three year term of the agreement, which may be extended up to a total offive years, Novartis will fund internal research at MorphoSys that will generateand optimize HuCAL GOLD(R) antibodies against targets identified by Novartis.In addition, Novartis will have access to the current MorphoSys HuCAL GOLD(R)library at two of its sites. This technology, in conjunction with Novartis'leading research and development capabilities, will potentially enable Novartisto shorten the time needed to generate novel therapeutic as well as researchantibodies.
Additionally, under the terms of this collaboration Novartis will be MorphoSys'first partner to receive a non-exclusive option on internalization of the entireMorphoSys technology platform, which would trigger an additional payment byNovartis to MorphoSys.
Underscoring the strategic nature of the collaboration, Novartis will make anapprox. EUR 9 million investment in MorphoSys by purchasing non-interest bearingconvertible bonds of MorphoSys. The convertible bonds, with a duration of 6months, can be converted into 490,133 common MorphoSys shares, to be issued fromconditional capital. In addition, MorphoSys will receive over US$ 30 million incommitted R&D funding and technology license fees over the first three years.MorphoSys also stands to receive technology license payments, research anddevelopmental milestones, as well as royalties on marketed antibody products.