Deutsche Bank cuts MorphoSys to 'sell' post outlook cut, shares slide

Morphosys AG

24/10/2022 09:31

** Shares of MorphoSys  MORG.DE  slide 9% after Deutsche
Bank downgrades the German biotech group to "sell" from "hold"
and slashes TP by 40% to EUR 18 per share
    ** The brokerage points to "another negative update" ahead
of full Q3 results, after the company on Friday cut the U.S.
sales guidance for its Monjuvi treatment for patients with
diffuse large B-cell lymphoma
    ** MorphoSys pre-announced Q3 Monjuvi U.S. sales of $2.2
mln, down 5% YoY, and expects the FY figure to be around $90 mln
vs $90-110 mln previously
    ** "That leaves us struggling to think of compelling reasons
to remain involved ahead of the 2024 MANIFEST2 read out,"
Deutsche Bank says, referring to MorphoSys's trial of pelabresib
in patients with myelofibrosis
    ** The broker adds that while the group likely has enough
funding through to the MANIFEST-2 read out, that looks like a
"scant consolation" 
    ** The stock is at the bottom of the German small-cap index
 .SDAXI 
 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))