MorphoSys and Galapagos Start First-In-Patient Dosing of IL-17C Antibody MOR106 in Atopic Dermatitis

• Ongoing Phase 1 study in healthy volunteers now advanced to investigate MOR106 in patients with atopic dermatitis
• Favorable safety results shown in healthy volunteers receiving single ascending doses (SAD) in the study to date
• MOR106 first publicly disclosed antibody targeting IL-17C in clinical studies worldwide

Mechelen, Belgium and Martinsried/Munich, Germany; 29 September 2016 - Galapagos NV (Euronext & NASDAQ: GLPG) and MorphoSys AG (FSE: MOR; Prime Standard Segment, TecDAX; OTC: MPSYY) announced today that the first patient with atopic dermatitis was dosed in an ongoing clinical phase 1 study with their jointly discovered and developed human monoclonal antibody MOR106 against IL-17C.

"Progression of MOR106 into clinical testing in patients suffering from atopic dermatitis is an important step forward in the development of this novel antibody. We look forward to finding out how this translates into safety and pharmacokinetics in patients," says Dr. Piet Wigerinck, Chief Scientific Officer of Galapagos.

"We are delighted that MOR106 is now being investigated in patients after favorable safety results were shown in healthy volunteers. We see a high unmet medical need for novel antibody therapies in inflammatory skin disorders such as atopic dermatitis. MOR106 is designed to selectively target and inhibit IL-17C, a cytokine related to dermal inflammation," commented Dr. Arndt Schottelius, Chief Development Officer of MorphoSys AG.

MOR106 is the first publicly disclosed monoclonal antibody targeting IL-17C in clinical development worldwide. IL-17C has been shown to be distinct from other members of the IL-17 cytokine family and to play an important and pro-inflammatory role in certain skin disorders.

The primary objective of the ongoing randomized, double-blind, placebo-controlled Phase 1 study is to evaluate the safety and tolerability. As secondary endpoints, the study will assess pharmacokinetics and potential immunogenicity of MOR106.

The first part of the study is being conducted as a single center study in 56 healthy volunteers, evaluating single ascending doses (SAD) as intravenous infusion compared to placebo. To date, MOR106 has shown favorable safety and PK results administered to healthy volunteers in the ongoing study. This has triggered the start of the second part of the study investigating multiple ascending doses (MAD) compared to placebo in approximately 24 patients with moderate to severe atopic dermatitis in several European study centers. As previously reported, topline results of the complete study, including the MAD part in patients and further results from the SAD part in healthy volunteers, are expected for the second half of 2017.