We are initiating coverage of Morphosys with a Buy recommendation and a FV of EUR62, representing c.35% upside potential. The stock has significantly underperformed both its peers and the wider market, following disappointing late-stage data for MOR202 and bimagrumab plus Celgene’s decision to end the partnership agreement for the latter. We believe that upcoming Phase III data for guselkumab, an anti-IL23p19 (partnered with JNJ) in development for the treatment of plaque psoriasis, could lead to a rerating of the shares.
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