Background
MorphoSys, a German biotech company, is an established leader in fully human antibody technologies. They have leveraged their technology to develop their own internal pipeline of proprietary antibodies for a variety of cancer and autoimmune diseases. As they evolve into a fully integrated development organization, they need to make strategic decisions on how best to develop these assets.
Opportunities
MOR202 is an antibody targeting CD38 for Mulitple Myeloma and other certain leukemias. MorphoSys decided to seek a global pharmaceutical partner to co-develop and co-promote this product as MorphoSys becomes a fully integrated biotechnology company.
MOR103 is an antibody targeting GM-CSF for rheumatoid arthritis and other inflammatory indications. It was MorphoSys’ most mature proprietary antibody in Phase II clinical trials. MorphoSys decided to seek a global pharmaceutical partner for this product to help get this drug to patients as quickly as possible.
Our work
On MOR202, we provided advisory services regarding co-development and co-promotion deal structures.
On MOR103, we provided a full, cross-functional team to support their internal deal leader and provide expertise and guidance on all aspects of the deal process. Our work comprised two distinct phases.
Phase One — Positioning the product
- We worked with both rheumatologist and neurologist thought leaders to better understand how the medical community could perceive MOR103 and its ability to differentiate itself across a range of potential competitors.
- We led in-depth interviews with top clinicians to define the unmet medical needs, perceptions of promising competition, as well as the strengths and unique characteristics of MOR103.
- We developed a summary of physician perceptions of the drug, and where this mechanism of action could fit in a competitive marketplace.
- We made recommendations on the positioning of MOR103, so MorphoSys could evaluate their strategic options to deliver this drug to patients.
- We provided guidance on how to incorporate these messages into the non-confidential and confidential pitch deck.
Phase Two — We became members of the MOR103 Deal Team
- We provided advisory services on managing the overall deal process. We reviewed and provided comments on presentation materials and prepared the MOR103 deal team for meetings with potential partners.
- We refined the revenue forecast based on new data and presented the business case.
- We provided analysis of comparable deals and built a comprehensive deal model.
- With our expertise, we were able to offer guidance on potential deal structures.
- We liaised with potential partners to drive deal timelines.
- We advised on negotiation strategy, maximizing competitive forces.
- We structured and redlined term sheets and valued term sheets with respect to retained value (rNPV).
- We participated in contract negotiations until the final deal was executed.
Results
MorphoSys signed a deal on June 3, 2013 with GlaxoSmithKline to develop and commercialize MOR103 in all indications. <Press Release>
MorphoSys signed a deal on June 26, 2013 with Celegene to co-develop and co-commercialize MOR202. <Press Release>
