MorphoSys rises after double upgrade from JPM

Morphosys AG

16/06/2023 07:24

** Shares in MorphoSys  MORG.DE  rise 3.3% in early
Frankfurt trade after J.P.Morgan double upgrades the German
biotech firm to "overweight" from "underweight", betting on a
positive report from the myelofibrosis MANIFEST-2 study in late
2023
    ** JPM says successful results from the phase 3 study on
Pelabresib (Pela) BET inhibitor would provide a "blockbuster
peak sales asset" and offer around 200% net present value upside
potential
    ** "With Pela PIII timelines having been accelerated to
year-end reporting, we now see triple-digit upside this year,
more than outweighing downside risk in the event of trial
failure," it says
    ** Assuming a large sales boost from Pela, JPM says it sees
very attractive prospects for MorphoSys, both standalone and as
partner or acquisition target
    ** It adds the risk from the firm's Monjuvi drug to
consensus forecasts seems to be "largely played out"
    ** Out of the 12 analysts that cover MorphoSys, six rate it
"buy", one "hold", three "sell" and two "strong sell"

 (Reporting by Anna Mackenzie)
 ((Anna.mackenzie@thomsonreuters.com))