Press Release: Recombinant Antibodies as Standard Material

First AbD Serotec generated HuCAL Antibodies Distributed as Part of
Clinical Diagnostic Kits for Autoimmune Diseases by Phadia MorphoSys AG (FSE: MOR; Prime Standard Segment, TecDAX) announced today that Phadia AB, a world leader in autoimmunity and allergy testing, has implemented a series of HuCALbased recombinant antibodies in its marketed autoimmune tests Varelisa™ and EliA™. Thereby Phadia becomes the first diagnostic company to introduce recombinant antibodies in an autoimmune screening platform. AbD Serotec, MorphoSys’s division for research and diagnostic antibodies, receives license fees and will continuously supply Phadia with recombinant antibody material. Further financial details were not disclosed. Phadia and AbD Serotec began collaborating in September 2005, bringing together Phadia’s expertise in the development, manufacturing and marketing of complete blood test systems and AbD Serotec’s leading recombinant antibody technology HuCAL. AbD Serotec has generated a
series of recombinant antibodies in the IgA, IgM and IgG1 format, which Phadia will implement in its marketed autoimmune tests Varelisa™, a classical ELISA microtiter platform, and the fully automated system for the measurement of autoantibodies EliA™. The set of recombinant HuCAL antibodies provided by AbD Serotec act as recombinant control antibodies and replace human serum to standardize autoimmune assays.

Autoimmune diseases include juvenile diabetes, various forms of rheumatism, hepatitis, thyroiditis and a variety of skin diseases. An early diagnosis can improve the treatment options and increase the quality of life for patients significantly. However, since the early symptoms, especially of systemic autoimmune diseases like rheumatoid disorders, can be very diffuse, several years can pass from the onset of the disease until a correct diagnosis is made. New easy-to-use and cost-effective diagnostic methods could shorten the time-to-diagnosis and subsequent treatment.
“Phadia has a long track record in using advanced techniques such as recombinant gene technology to produce a wide range of precise and reliable diagnostic tests for autoimmune diseases,” commented Stefan Eschbach, Vice President of Phadia. “The use of recombinant control antibodies was shown to increase the accuracy and reproducibility of diagnostic tests.
AbD Serotec’s ability to generate these highly-specific recombinant antibodies in various formats using the HuCAL technology has been extremely helpful in this regard.”
“Today’s news marks the first market entry of a clinical diagnostic kit comprising a HuCAL antibody,” commented Dr. Simon Moroney, Chief Executive Officer of MorphoSys. “This development is a significant step forwards for recombinant antibody technology in the diagnostics field, and a major operational milestone for our AbD unit.”

About MorphoSys:
MorphoSys is a publicly traded biotechnology company focused on the generation of fully human antibodies as a means to discover and develop innovative antibody-based drugs against life-threatening diseases. MorphoSys’s goal
is to establish HuCAL as the technology of choice for antibody generation in research, diagnostics and therapeutic applications. The Company currently has therapeutic and research alliances with the majority of the world’s largest
pharmaceutical companies including Boehringer Ingelheim, Centocor/Johnson & Johnson, Novartis, Pfizer and Roche. Within these partnerships, more than 50 therapeutic antibody programs are ongoing in which MorphoSys participates through exclusive license and milestones payments as well as royalties on any end products. Additionally, MorphoSys is active in the antibody research market through its AbD Serotec business unit. The business unit has operations in Germany (Munich), the U.S. (Raleigh, NC) and U.K. (Oxford). For further information please visit http://www.morphosys.com/
HuCAL and HuCAL GOLD are registered trademarks of MorphoSys AG

About Phadia:
Phadia develops, manufactures and markets complete blood test systems to support the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases. Besides strategic management, administration and business development, the international centre in Uppsala incorporates extensive research and development facilities, a production plant and a distribution system operating cost-effectively around the clock. In Freiburg, Germany, a second centre develops and supports diagnostic tests for autoimmune diseases. Some 98% of production is exported to more than 3000 laboratories in 60 countries. Supplying seven out of ten allergy laboratory tests worldwide, the company has remained the world leader in its field for more than 25 years.

This communication contains certain forward-looking statements concerning the MorphoSys group of companies. The forward-looking statements contained herein represent the judgment of MorphoSys as of the date of this release and involve risks and uncertainties. Should actual conditions differ from the Company's assumptions, actual results and actions may differ from those anticipated. MorphoSys does not intend to update any of these forward-looking statements as far as the wording of the relevant press release is concerned.

For more information, please contact:

MorphoSys AG Phadia AB
Dave Lemus
Chief Financial Officer
Tel: +49 (0) 89 / 899 27-439
Fax: +49 (0) 89 / 899 27-5439
investors@morphosys.com

Nina Olschowka
Product Manager and Communications
Tel: +49 (0) 761 / 478 05-133
Fax: +49 (0) 761 / 478 05-120
nina.olschowka@phadia.com

Dr. Claudia Gutjahr-Löser
Head of Corporate Communications and
Investor Relations
Tel: +49 (0) 89 / 899 27-122
Fax: +49 (0) 89 / 899 27-5122
gutjahr-loeser@morphosys.com

Mario Brkulj
Manager Corporate Communications and
Investor Relations
Tel: +49 (0) 89 / 899 27-454
Fax: +49 (0) 89 / 899 27-5454
brkulj@morphosys.com

1/16/2006

 

As in all diagnostic testing, the diagnosis is made by the physican based on both test results and the patient history.