MorphoSys share significantly weaker: MorphoSys remains in the red

MorphoSys remains in the red.

In the third quarter, the biotech company was able to boost its sales compared to the previous year, but the bottom line was a high deficit. While the most important beacon of hope in Bavaria is gaining momentum with the cancer drug Monjuvi, the SDAX company is sticking to its annual targets that have already been capped. The stock came under pressure on Thursday.

According to the figures, the paper pushed its downward slide, which had been going on for months. The price dropped by almost eleven percent in the morning to 34.24 euros, the lowest level since 2016. Recently, the course was able to recover a little, but was still six and a half percent in the red at noon at 35.91 euros.

Contrary to the negative stock market reaction, some analysts said they were positive about the quarterly report: Industry expert Rosie Turner from the British investment bank Barclays attested the company to solid quarterly results. Analyst Zhiqiang Shu from the private bank Berenberg referred in particular to the development at Monjuvi – sales of the drug were slowly showing strength. However, this is not enough for Vineet Agrawal from Citigroup: Investors would first have to see a much stronger upswing in the numbers in order to become more optimistic again, the expert stated. In the short term, there is a lack of price drivers, wrote the analyst.

MorphoSys posted a deficit of 112.8 million euros for the past quarter. Compared to the previous year, the company slipped deeper into the red. In the third quarter of 2020, the minus was around 65 million euros. However, losses are not uncommon for biotech companies, as high research costs are often incurred, especially in their initial phases. The antibody specialist MorphoSys has so far only one drug on the market with Monjuvi and is therefore pushing research with other drugs and other areas of application. The costs for this in the past quarter were well above the previous year’s level, and sales expenditure also remained high. The group is currently investing a lot of money in marketing Monjuvi.

As has already been known since last week, sales of the blood cancer therapy, which is marketed jointly with partner Incyte in the USA, is currently picking up speed. After the funds in the recent past lagged behind market expectations, Monjuvi flushed the third quarter, according to the final figures, the equivalent of 18.6 million euros in the coffers in the past quarter. Outside the USA, the product is sold under the name Minjuvi, where the company received initial license income of 82,000 euros in accordance with the agreement with Incyte. In August, MorphoSys received conditional approval for combination therapy with the drug in Europe as well.

Group-wide, sales rose by 87 percent to 41.2 million euros in the past quarter. MorphoSys performed better than expected on the market. The management around CEO Jean-Paul Kress confirmed its forecasts – the sales targets had been cut because of the slow run at Monjuvi in ​​July.

MorphoSys shares by numbers on a decline – multi-year low

The shares of the biotechnology company have accelerated their latest decline according to the figures presented the previous evening. The price had slipped by almost eleven percent to EUR 34.24 at times in the morning and reached its lowest level since 2016. The price has recently recovered somewhat, but is still 2.86 percent in the red at EUR 37.30.

Citigroup analyst Vineet Agrawal judged in a study on Thursday that the share still lacks a timely price driver. For some time now, paper has been one of the big losers on the stock market. Since the multi-year high of 146.30 at the beginning of 2020, it has fallen by around 75 percent – no other German standard value has lost more in the period. The company is only worth around 1.2 billion euros on the stock exchange.

Because of the fall in the share price, the company also moved from the MDAX to the SDAX in September.


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