Morphosys Reports Strong Decline in Third Quarter Revenue, Study Results for Pelabresib Expected Earlier Than Anticipated

German drug researcher Morphosys has experienced a significant decrease in revenue in the third quarter. The decline was attributed to a sharp drop in licensing income, the company announced on late Wednesday evening, located in Planegg near Munich and listed on the SDax. As a result, the loss in day-to-day operations was even greater than the previous year. Meanwhile, the release of study results for the important hopeful drug Pelabresib is approaching. The data for the cancer medication are now expected by the end of November, slightly earlier than anticipated. The stock rose five percent in after-hours trading in the US, although it had closed seven percent lower beforehand. In the three reporting months from July to September, revenue decreased by about a third to €63.8 million compared to the same period last year, Morphosys reported. However, last year, the company had benefited from a special effect through a licensing agreement with the US company Human Immunology Biosciences. The operating result in the past quarter reached minus €51 million - a year earlier, the company had reported a minus of €29.3 million. Morphosys has been in the red for a longer period due to high research costs. However, the net loss recently decreased slightly to €119.6 million, mainly due to lower expenses in financial results. The market had expected even worse results in revenue and operating income, but analysts had anticipated a much lower net loss. The board of directors, led by CEO Jean-Paul Kress, also confirmed the forecasts. Recently, the management had raised the sales target for its most important product due to good business with the blood cancer drug Monjuvi. Net product revenues are expected to be between $85 million and $95 million this year. In the reporting period, the Bavarians generated $23.4 million with the drug - as already known since the end of October. Morphosys reports the Monjuvi product sales in US dollars because it only holds the distribution rights for the US market. The company shares these rights with the US company Incyte. However, investors in the market are likely to be more interested in the upcoming evaluation of the study data for Pelabresib than in the numbers. With the costly acquisition of US cancer specialist Constellation Pharmaceuticals in 2021 for around $1.7 billion, Morphosys had bet everything on this active ingredient. The team led by CEO Jean-Paul Kress hopes to establish Pelabresib as a frontline treatment for patients with Myeolofibrosis, a rare bone marrow-related blood cancer, despite increasing competition. Morphosys has dedicated everything to the hope of a breakthrough with Pelabresib in the past two years. Due to high costs, some other research projects were abandoned, and positions were eliminated. With the tailwind of approval, the company is expected to return to profitability in the future. In the upcoming study, which is currently pending publication, the drug is being investigated as a first-line therapy. According to previous statements by Morphosys, the preliminary results suggest that the drug can restore the balance of various types of white blood cells, which are faulty in the disease. The most important treatment success is measured by a significant reduction in spleen volume, with more than 35 percent required in the case of the Morphosys study. In addition, the reduction of symptoms is the focus as a so-called "secondary endpoint" of the clinical trials. These include fatigue, fever, and weight loss. The US Food and Drug Administration (FDA) has already granted the drug "Fast Track" status, which gives it the prospect of an accelerated approval process. The agency grants this status for severe or life-threatening diseases where there is an urgent need for new therapies.