Morphosys to slash early drug research programmes to preserve cash (updated)

Morphosys AG

02/03/2023 09:06

(Adds background, CEO quote)
       FRANKFURT, March 2 (Reuters) - German biotech firm
Morphosys  MORG.DE  said it would stop its work on drug
candidates that have not yet been tested on humans after its
2023 revenue prospects worsened.
    In a statement on Thursday, Morphosys added it would reduce
its workforce at the company’s headquarters in Planegg, Germany,
by approximately 17% as a result of the cutback.
    Morphosys in January lowered its 2023 sales target for its
most important drug, Monjuvi against a certain type of lymphoma,
raising concerns among analysts about its ability to fund its
research and development activities.
        Its shares 
    plunged
     in November after Roche's  ROG.S  Alzheimer's drug
candidate, in which Morphosys held certain rights, failed to
slow dementia progression in key trials.
  
        "Given the challenging market we are operating in, we
need to continue to concentrate our investments on our
most-advanced clinical programs that will have the greatest and
most immediate impact on patients’ lives,” said Chief Executive
Officer Jean-Paul Kress.
  
        Morphosys added it would explore other options for its
pre-clinical research programmes. 
  
        
  
        
  

 (Reporting by Ludwig Burger, Editing by Rachel More)
 ((ludwig.burger@thomsonreuters.com; +49 30 220133634;))