Half Year 2020 MorphoSys AG Earnings Call
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Ladies and welcome to the most Oh, Yeah, well Twentytwenty conference call piece. That's that's all the duration of the presentation, all participants will be understood and amazed at the conference is being recorded.
Unknown Executive: Ladies and gentlemen, welcome to the MorphoSys half-year report 2020 conference. Please note that for the duration of the presentation, all participants will be in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions... Please note that we can only take your questions if you have registered by mail. Should anyone need assistance during the conference call, they may signal this by pressing the star key and zero on their telephone. Now, I would like to turn the conference over to Anja Pomrien. Please go ahead. Thank you. Ladies and gentlemen, good afternoon or good morning.
After the presentation I will be opportunities to ask questions.
Please note that we can only take your questions. If you have right to said my name should anyone need assistance during the conference call that may signal, they by pressing star PMC around that kind of that.
Now I would like to turn the conference ever Tanya Company. Please go ahead.
Thank you.
Ladies and gentlemen, good afternoon no. Good morning. My name is on your Palmer and head of Investor Relations at multiple says.
Anja Pomerin: My name is Anja Pomerin, Head of Investor Relations at MorphoSys. It's my pleasure to welcome you to our Q2 2020 results conference call and webcast. With me on the call today are Jean-Paul Crette, Chief Executive Officer; Jens Holstein, Chief Financial Officer; Malte Peters, Chief Research and Development Officer; and Roland Wandler, Chief Operating Officer.
It's my pleasure to welcome you to our Q2 Twentytwenty results come from cold and wet car.
With me on the call today, our jump okay.
She's Executive Officer, you haven't toward Stein Chief Financial Officer.
Mark to Peter.
Chief Research and development Officer.
And the board Vanilla Chief operating officer.
Before we start I would like to remind you that some of the statements made during the call today are forward looking statements.
Anja Pomerin: Before we start, I would like to remind you that some of the statements made during the call today are forward-looking statements, including statements regarding our expectations for the commercialization of our products and our development plan, the impact of COVID-19 on our business, and expectations for the compounds in our pipeline, as well as the development plans of our collaboration partners. These forward-looking statements are subject to a number of risks and uncertainties that may cause our actual results to differ materially, including those described in MorphoSys' 20th and annual report, all for the year ended December 31st, 2019, and from time to time in other SEC documents of MorphoSys. It is important to keep in mind that our statements on this webcast speak only as of today.
Including statements regarding our expectations for the come on commercialization of our product.
And our development platform.
The impact of corporate 19 on our business and expectations for the compound in our pipeline as well as the development plan of our collaboration partners.
These forward looking statements are subject to a number of risks and uncertainties that may cause our actual results to differ material, including those described in more folks is 20-F and annual report all for the yet ended December 31st too.
And then 19 and from time to time in other SEC documents of both.
It is important to keep in mind.
That our statements this webcast speak as of today.
Anja Pomerin: Readers and listeners are requested to refer to slide two. You will find the agenda of today's call on slide three. Jean-Paul will provide an overview of the highlights in the second quarter of 2020, Jens, and we'll talk you through the financial results of both the second quarter and the first half of 2020. Béchois Jean-Paul will close with a summary. After the presentation, we will be available for your questions. The presentation, as well as the media release announcing the Q2 and H1 2020 results, is available on the MorphoSys corporate website, morphosys.com. I now hand over to Jean-Paul.
We didn't listen there are reports that to refer to slides to.
You will find the agenda of today's call inside slots rate.
Don't with provides an overview of the highlights in the second quarter Twentytwenty.
Yes, and we'll talk you through the financial results both the second.
And the first half of Twentytwenty.
Before not pull would close with a summary.
After the presentation, we will be available for your question.
The presentation as well as immediate release announcing the Q2 and H. one twentytwenty results.
Available both corporate website morphosis dot com.
I'll now hand over to long haul.
Unknown Executive: Thank you, Anya. Good morning or good afternoon, everyone.
Thank you on yes, good morning, good afternoon, everyone.
Unknown Executive: I would like to take the opportunity to introduce Roland Vandalin, our new Chief Operating Officer. Roland was appointed to the MorphoSys Management Board and joined the company three months ago. He leads our global commercial organization, including our U.S. operation.
I would like to take the opportunity to introduce the whole of under our new Chief operating officer.
Although it was appointed to the multiple just manage among ball and has joined the company three months ago.
He leaves our global commercial organization, including our USA operations.
Unknown Executive: Roland will be available for the Q&A session after the presentation. Please move to slide 5 for the most recent and exciting highlights. As many of you will know, just a few days ago, on July 31, the FDA approved Monju-V as a combination therapy with lenalidomide for patients with relapsed or refractory diffused large B-cell lymphoma, or DLBCL. We are very excited with the accelerated approval of Montjuvi by the FDA, which we believe emphasizes the high unmet need for this patient. This approval is a very important milestone, not only for MorphoSys but also for patients battling this very aggressive disease, as it is the first FDA-approved second-line therapy for adult patients with relapsed or refractory DLBCA. The clinical data in the FDA prescribing information demonstrate that, in the L-MIND study, Monju-V, in combination with lenalidomide, shows durable efficacy and sound safety Subsequent analysis with longer observation times, as recently shown at HIHA, confirmed the durability of the response.
I will be available for the Q inefficient.
Filled the presentation.
Please move to slide five for the most recent an exciting highlight.
As many of you will know just a few days ago on July 31st the FTC approved one Julie as a combination therapy with limited them either for patients with relapsed or refractory diffuse large b cell lymphoma.
Well this year.
We are very excited with the accelerated approval of forms review by the FDA, which we believe emphasizes the high unmet need for these patients.
Disapproval is a very important milestones.
Not only formal for this but also for patients buckling is very aggressive disease as it is the first as the approved second line therapy for adult patients with relapsed.
All I talk to each of this year.
The clinical data in the FDA prescribing information demonstrates ducs in the L. mine study on JV in combination with led lights Lenalidomide shows durability should Casey and sounds safety and Tolerability data.
With an objective response rate of 55% accomplish response rate of 37% and medium duration of response of 21.7 form.
Subsequent analyzes with longer observation times.
Recently shown up half confirmed the wtf responses.
On July is the first on Peabody developed by multiple disease that we bring to the musket.
Unknown Executive: Bonjouvi is the first antibody developed by MorphoSys that we bring to the market. Over the past month, we at MorphoSys, together with our partner, have been working hard to ensure a very well prepared and successful launch in the U.S. I'm also very pleased to inform you that Mont Jovi is already commercially available in the U.S. as of today. The approval and launch mark an important milestone for patients battling relapsed or refractory DLVC. Now, moving to slide six for the highlights of the second quarter.
Although the past month, we portfolios is to get out with our partner.
In working hard to ensure a very well prepared and successful launch in the U.S.
I'm also very pleased to inform you that one jovi is already commercially available in the us as of today.
The approval and launch Mark an important milestone for patients bottling relapsed or refractory deal this year.
Now moving to slide six for the highlights of the second quarter.
We're very pleased that the submitted European marketing authorization application.
Unknown Executive: We are very pleased that the submitted European Marketing Authorization application for Tafasit Amab was recently validated by the European Authority. This could lead to an approval in 2021, and our partner will be responsible for the commercialization outside of the U.S. We look forward to the potential approval, which would be another important milestone for us. In addition, long-term data on Tafasitamab were presented at the virtual annual meeting of HIHA. Data show unprecedented durability with a median duration of response of 34.6 months and median overall survival of 31.6 months. These two-year follow-up data from the ongoing LMIND study are very encouraging and confirm the previously reported results from the primary analysis. Moreover, these two-year follow-up data are part of the MAA dossier. If we look at the news flow of our other pipeline programs in the second quarter, we're also very pleased with the progress. Morpho2 now has the international non-proprietary name Felsartamab, to which we will refer going forward. For M-PLACE, our study of felzartamib in autoimmune membranous nephropathy.
At them up what's recently validated by the European authorities.
This could lead to an approval in Twentytwenty one.
And our partner will be responsible for the commercialization outside of the units.
We look forward to the potential approval, which would be another important milestone for us.
In addition.
Long term data on toughest Youtube represented at the virtual annual meeting of he hall.
Dave touched show an unprecedented durability with a mid Jim duration of response of 34.6 month and median overall survival of 31.6 month.
These two your follow up data of the ongoing as mindset.
Very encouraging and confirmed the previously reported results.
Primary analyzes.
Moreover, these two year full updates up off of a dose.
If we look at the news flow of all the pipeline programs into second quarter.
We also very pleased with the progress.
Turning to move to a too.
Multiple to now has the international non proprietary name fed is up come up.
To which we will but fair to going forward.
Well in place I was study of fed is up them up in auto immune lumbering this new property.
Unknown Executive: We have resumed screening and enrollment of patients. As you might recall, we had proactively paused screening and enrollment during the past month due to the COVID-19 pandemic, as it was and still is a priority for us to ensure the safety of patients and, as well as to safeguard that data integrity. Moving on to Otilie Mapp.
We have resumed screening and enrollment of patients.
As you might recall, we had party repurposed screening and enrollment during the past month due to the covered 19 fund image.
As it was and still is a priority to us to ensure the safety of patients and.
As well as to save got that data integrity.
Moving onto a dilemma.
Unknown Executive: GSK has resumed the enrollment of patients into the CONTRAST program after this had also been proactively paused due to the COVID-19 pandemic. Just to remind you, CONTRAST is a Phase III program evaluating OT-LIMAB in patients with moderate to severe rheumatoid arthritis in three pivotal studies, as compared to Trem Faya. You will recall that three weeks ago, Johnson announced the approval of TREM FHIR by the FDA for the treatment of adult patients with active psoriatic atrophy. Active psoriatic arthritis is a chronic progressive disease characterized by painful joints and skin inflammation and is a high burden for this patient.
GSK has resumed and broke enrollment of patients into the current trust plug them. After this has also been productively posed due to the covert 19 funded.
Just to remind you can trust is a phase three program.
Rating utterly mob in patients with moderate to severe commentary the attractive in Threed pivotal studies.
As could trend file you will recall that this three that three weeks ago, Johnson announced the appeal of others trim fire, but the FDA, while the treatment of adult patients.
With active Psoriatic arthritis.
Active problematic I tried this is a clinic progressive disease.
Terrorized by painful joints and can inflammation and is a high burden for these patients.
Unknown Executive: We are therefore very pleased to see the commitment of Janssen to further develop Trampfire more broadly, not only in RA but also in other indications. Moving to slide 7 for further updates on our R&D, as I have already mentioned earlier.
We are therefore very pleased to see the commitment of John asked them to further develop trim fire more broadly.
Not only in our eight but also in other indications.
Moving to slide seven for further update on our R&D.
As already mentioned earlier.
Unknown Executive: The approval and commercialization of Montjuvi in the U.S. marks an important milestone, and represents the first step of our commitment to further broaden and advance the development of Taffa's ThetaMap. Patients with Frontline DLVCL and a high risk score have a high unmet need to improve the efficacy of ARCHOP as a significant number of patients are not cured or progress. In our first mind study,
The approval and commercialization of modules into you with marked an important milestone.
And the represents the first step of our commitment to further broaden and adsense to development of efforts to come up.
Patience with frontline deal this year.
And height risks call have a high unmet need to improve the efficacy of actual as a significant number of patients are nuts cured and progress.
Ill first mines study.
Unknown Executive: Phase 1B study in newly diagnosed DLVCL patients. The target sample size of 60 patients has been reached one month ahead of the forecast, despite the COVID-19 pandemic, showing the high interest of the community.
The phase one be study in newly diagnosed disabled patients.
Ill get sample size of 60 patients has been reached one month ahead of the focused despite the provide covered 19 pandemic.
This shows the high interest of the community.
Fall stuff as you come up as it puts him shut the uptick option in untreated patients with deal this year.
Unknown Executive: Forza Facilita Mab, as a potential therapeutic option in untreated patients with DLVCS. In this study, we evaluate the safety and preliminary efficacy of tafacitamab with or without lenalidomide in combination with ARCHOP. FirstMindData will support the planned Pivotal program in frontline DLBCL, which we intend to initiate early 2021. We have agreed with the FDA to use a randomized phase 3 clinical trial in DL-BCL with tafacitamab and lenalidomide as a confirmatory trial, and a study like our planned pivotal frontline study would meet the post-marketing requirements. The FDA was pleased with the synergy of tafacitamab and lenalidomide and considered our frontline study as the best option for a confirmatory trial. I hope this provides you with some insights into the opportunities in DLBCL and gives you confidence that we are preparing for further leveraging our assets for long-term growth.
In this study, we evaluate the safety and preliminary efficacy of tariff Youtube with or without Lenalidomide in combination with up.
The first mine data was triple the planned pivotal program in frontline deal this year.
Which we intend to initiate early twentytwenty one.
We have agreed with the FDA to use and randomize phase three clinical trial in deal dishes. We started on mob and Lenalidomide as Con Cemetery trial and the study like our planned people does frontline study would meet the post marketing requirements.
The EBITDA was pleased with the SSCF deficit, the mob and Lenalidomide and consider our frontline study as the best option fall or confirmatory trial.
I Hope this provides you with some inside of the opportunities in deal. This year and gives you confidence that slipped preparing fulfilled their leveraging our asset for long term growth.
Unknown Executive: We'll obviously keep you informed on our progress. Furthermore, we are finalizing our plans to develop Tafasitamab in additional indications and in different combinations for Multiple B-Cell Malignancy, and plan to develop Tafasitamab in combination with Parthaclysib, a PI3-Kinase Delta Inhibitor from Insight.
Lucky.
The <unk> Delta inhibitor from insight.
We are targeting the initiation of a study accessing these combination before the end of 2020.
Unknown Executive: We are targeting the initiation of a study assessing this combination before the end of 2020. We intend to hold a KOL call in the fall on our plans for additional development, and we'll provide a more comprehensive update on Tafasitamab later in the year. We will inform you in due time. Now turning to our development progression of our other pipeline projects. Regarding the development of MORPH-202 or Feldartamab in oncology this time, our partner IMab dosed the first patient in mainland China at the end of April this year in the ongoing phase 3 trial in multiple myeloma. IMAB is highly committed to bringing Fels-Artemab to patients who need new treatment options. To give you a further update on OT Limap, GSK has started a clinical trial called Ofkar to evaluate the efficacy and safety of otilimab in patients with severe pulmonary COVID-19 associated disease.
We intend to hold the cable will call in the full on our plans for additional development and will provide a mall comprehensive update on diversity later in the year.
Inform you and <unk> time.
Now turning to our development progression of our other pipeline projects.
Regarding the development of milk two O two.
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Partner I am mob has does the first patient in mainland China at the end of April of this year.
Ongoing phase III trial in multiple myeloma.
<unk> is highly commited to bringing first of them up to patients would need new treatment options.
To give you a further update on Otila mob.
<unk> has started a clinical trial Oscar to reevaluate the efik, Casey and safety of heartily mud in patients with severe preliminary covet 19 associate that disease.
Unknown Executive: It is expected that up to 800 patients will be enrolled in the study, and it is anticipated that the data will be available in Q1 2021. We are, of course, very pleased to see that GSK has decided to investigate otilimab in COVID-19 patients. And we hope that it will successfully contribute to the fight against this disease. Before I end the call, I'm turning it over to James. I'd like to provide you with a brief summary of where we stand with our U.S. launch preparation or execution. Please move to slide 8.
It is expected that up to 800 patients.
Will be enrolled in the study.
And it is anticipated that the doctor will be available in Q1 2021.
We are of course very pleased to see that GSK has decided to investigate or chili mud in covered 19 patients and we hope that it was successfully contribute to fight against.
Beforehand, the call over to yes.
I'd like to provide you with a brief summary on where we stand with R. U S lunch preparation or execution it'd be precise.
Unknown Executive: Over the past month, we at MorphoSys, and also with our partner, have been gearing up for a successful Montjuvi launch in the U.S. with our fully staffed field force and access plan in place during this pandemic time. We're using a combination of virtual engagement tools to address customer needs and to initiate, maintain, and grow connectivity with customers. Overall, feedback received from engagements with physicians and lymphoma experts is that Mounjouvi provides a unique value proposition to address a significant unmet need.
Please move to a slight eighth.
Although the past month.
At muscle.
And also with a partner.
Have been gearing up for a successful manager will launch in the U S with our fully staffed fill false and access plan in place.
During this pandemic times.
We are using a combination of gift shallow engagement tools to address customer needs and to initiate maintain and grow connectivity with customers.
The overall feedback received from engagements with physicians and lymphoma experts.
Unknown Executive: We are preparing for an anticipated early approval and a subsequent fast launch. Since earlier this week, we have engaged and informed all government commercial payers. And our medical team has submitted our clinical dossier to the NCCN Guideline Committee. Since yesterday, Monjouvi is listed within the FDA NDC directory. The first vials of manjuvi were shipped last night to our network of specialty distributors, so customers can order as of this morning. Finally, our sales team is completing their training and certification and will begin engaging with HDP today. And, as I mentioned earlier, Monjuvi is commercially available in the US as we speak, and we're excited to bring this much-needed therapy to patients with relapsed or refractory DLV.
<unk> provides a unique value proposition collaborates, a significant unmet needs.
We prepared for an anticipated earlier and a soup second fast lunch.
Since earlier this week.
We have engaged in informed all government commercial peers.
And a medical team has submitted are clinical to see to the end CCN guideline Committee.
Since yesterday Bon Jovi is listed within the F D. A N D C directory.
The first buyers of Mondavi were shipped last night to our network of specialty distributors.
Jens Holstein: With that, I hand the call over to Jens, who will discuss the results for the first half and second quarter of 2020. Jens, please. Thank you, Jean-Paul. And also, on behalf of me, a warm welcome to all of you on the call.
So customers can other as of this morning.
Finally.
Sales team is completing that training and certification and will begin engaging with HCP today.
And as I mentioned earlier Manju b as commercially available in the U S. As we speak and we're excited to bring this much needed therapy too patients with relapsed of refractory dld's yet.
Jens Holstein: Let me reiterate that we are really very excited about the accelerated approval of Manjubi by the FDA. MorphoSys is well prepared for its next step as a fully integrated biopharmaceutical company given our strong financial position. Let me start my section now on the financials on slides. As you can see, group revenues in the second quarter of 2020 amounted to 18.4 million euros. Revenues include success-based payments of 12.8 million euros, primarily from January. However, as in previous quarters, the contractual royalty reporting from Jensen for Tremfire has not been received yet.
With that I have the call over to yes, we'll discuss the results for the first half and second quarter of 2020.
Thank you Sean Paul and also for me alone welcome to all of you on the call.
So let me reiterate that we are really very excited with the accelerated approval of matsui by the FTA.
My phone as well prepared for it's next step is fully integrated biopharmaceutical company, given all a strong financial position.
Let me start my section now on the financials on slide 10.
Thank you can see grilled revenues in the second quarter of 2020 amounted to $18 4 million euros.
Jens Holstein: So Tremfire royalties booked in Q2 2020 were estimated based on a public announcement made by JensenChange, and final numbers can still slightly vary due to the foreign exchange rate. However, the overall decrease in revenues is due to the effect of a milestone payment of 22 million euros from GSK for Utilimab, which was recorded in the second quarter of last year. Looking at expenses, our total operating expenses in the second quarter of 2020 increased to 66.8 million euros. The increase mainly derives from expenditures in relation to preparations for the anticipated Tafasita Map US commercialization as well as the further expansion of MorphoSys US Inc. Due to a reversal of impairment, the cost of sales for the second quarter of 2020 resulted in a net income of plus 7.2 million euros
Revenues income success based payments of 12 8 million.
Primarily from Janson.
As in previous quarters, the contractual relative reporting from Jensen for transfer has not been received yet so transpire royalties booked in Q2 2020, what estimate based on the public announcement named by Jensen J&J and final numbers can still slightly very due to the foreign exchange rate effects.
However, the overall decrease in revenues is due to the effect of a milestone payment of 22 million Nero Some Keith K for tell him up which was recorded and the second Caudell philosophies.
Looking at expenses hour total operating expenses in the second quarter of 2020 increased for 66 $8 million rose the increase mainly to rise from the expenditure relation to preparations of the anticipated <unk> commercialization as well as the further expansion of Muslim the muscles Suse ink.
Due to a reversal of impairment the cost of sales for the second quarter of 2020 resulted in the net income of plus 2 million euros.
Jens Holstein: The expenses for research and development rose to 30.9 million euros, largely driven by expenses for external laboratory services and personnel. Selling expenses increased to 29.3 million euros and general administrative expenses to 13.8 million euros, both driven by higher personnel expenses and expenses for external services in association with the preparation of the Manjubi Law. Selling expenses also comprised expenses for services rendered by Insight in connection with a joint U.S. activity.
The expensive for research and development rose to 39 million largely driven by expensive for external laboratory services and personnel.
Selling expenses increased to 23, 29 3 million in general administrative expenses to 13 million euros, both driven by higher personnel expenses and expensive for external services in association with preparation of them until we launched.
Selling expenses also comprised expenses for services rendered by inside in connection with the <unk> activities.
And earnings before interest in Texas, Therefore amounted to minus 51 million as a result of the higher expenses and the R&D and SG&A section.
Jens Holstein: Earnings before interest and taxes, therefore, amounted to minus 50.1 million euros as a result of the higher expenses in the R&D and SG&A sector. Net finance expenses of €7.6 million mainly resulted from gains and losses in relation to financial assets and liabilities from collaborations and also from gains and losses from investments in liabilities. Our consolidated net loss after taxes amounted to minus 53.1 million euros in the second quarter of 2020, and earnings per share were minus 1 euro and 62 euros. On slide 11, you see a summary of our segment reporting now for Q2 2020. In our proprietary development segment, MorphoSys targets and develops its own drug candidates, focusing on cancer inflammation.
Net finance expenses of seven 6 million.
Mainly result of some gains and losses in relation to financial assets and liabilities from collaborations and also from gains and losses from investments of liquid fun.
Our consolidated net loss of the Texas amounted to mind, 53, 1 million euros and the second quarter of 2020 earnings per sure where minus one euro at 62 year or <unk>.
On slides 11, you see a summary of our segment reporting now for <unk> 2020.
In our proprietary development segment morphosis reaches and develops its own dropped candidates focusing on cancer inflammation in.
Jens Holstein: In Q2 2020, this segment recorded revenues of €5 million versus €25.9 million in the previous year. The decline primarily reflects the already mentioned €22 million milestone payment from Blackswell SmithKline, which was recorded in the same time period in 2019. Operating expenses in the propriety development segment amounted to €56.3 million, as compared to €32.9 million in Q2 of last year. The elevated expenses derive from higher investments for the development of our proprietary products, and hence the EBIT of our propriety development segment was minus 51.3 million euros. In the partner discovery segment, MorphoSys applies its proprietary technology to discover new drug candidates for pharmaceutical companies and thus participates in its partners' development advancements through research and development funding, license fees, success-based milestone payments, and roles.
Q2, 2020. This segment recorded revenues of 5 million euros. This is 25 9 million euros and the previous year. The decline primarily reflects the already mentioned 22 million neuro milestone payments on Glaxosmithkline, which was recorded in the same time period of 2019.
Operating expenses and the propriety development segment amount of 56 3 million euros as compared to 32 9 million euros and cute too of last year.
The elevated expenses derived from our higher investments for the development of all proprietary program and hence the EBIT Harper piracy development segment was minus 51 3 million euros.
And the part that discovery segment, my photo supplies for biotechnology to discover new drug candidates for pharmaceutical companies and thus participate in its partyless development advancements for research and development funding license fees success based milestone payments and royalties.
Revenues and the partner discovery segment client to $13 4 million years, and Q2 2020 from eight 7 million and Q2 2019.
Jens Holstein: Revenues in the partner discovery segment climbed to 13.4 million euros in Q2 2020 from 8.7 million euros in Q2 2019. EBIT and our partner Discovery Segment rose to 11.1 million euros from 6.3 million euros. Please move to slide 12 for the key financial figures for the first half of 2020. Group revenues soared to €269.7 million from €48.2 million in the first half of last year. The increase was mainly driven by the collaboration and licensing agreement with Insight in the first quarter of this year to further develop and commercialize Tafasitamab globally. Part of the 750 million U.S. dollar upfront payment and the 58 million U.S. dollar premium was accounted for as revenue in Q1 2020. The remainder is represented on the balance. Research and development expenses amounted to 52.4 million euros versus 49.3 million euros in the same time period last year.
EBIT in our apartment discovery second grows to $11 1 million euros from six 3 million years.
Please move to slide 12 for the key financial for the first half of 2020.
Group revenues sort to 169 7 million euros from 48 2 million and the first half of last year. The increase was mainly driven by the collaboration and licensing agreement with inside and the first quarter of this year to further development until further development commercialized.
<unk> globally.
Part of the $750 million U S dollar upfront payment and off the $58 million premium was accounted for his revenue in Q1 2020. The remainder is represented on the balance sheet.
Research and development expenses amounted to 52.4 million euros versus 49 3 million you <unk> in the same time period last year.
The EBIT, therefore search to 163 5 million compared to minus 29 3 million years and the first half of 2019.
Jens Holstein: The EBIT, therefore, surged to 163.5 million euros compared to minus 29.3 million euros in the first half of 2019. Now, let's move to the balance sheet on slide 13. As you can see, as of June 30th, 2020, we recorded total assets of approximately 1.4 billion euros versus 496.4 million euros at the end of 2019. Our liquidity position amounted to 1.06 billion euros compared to 357.4 million euros as of December 31st, 2019. This liquidity position is reported on the balance sheet under the items Cash and Cash Equivalents, Financial Assets at Fair Value for Profit or Loss, and Current and Non-Current Other Financial Assets at Amortized Cost.
Now, let's move to the balance sheet on slide 13.
So you can see as of June 30th 2020, we recorded total assets of approximately one 4 billion euros versus 490 614 million year olds at the end of 2019.
Our liquidity physician amounted to 106 billion euros compared to $357 for minerals as of December 31, 2019.
This liquidity positions reported on the balance sheet under the item items cash in cash equivalents financial assets at fair value for profit or loss and current and non current other financial assets at Amazon costs.
For the financial guidance of the full year 2020, please know move to slide 14th.
Jens Holstein: For the financial guidance for the full year 2020, please now move to slide 14. For the full year 2020, we confirm our financial guidance. We continue to expect group revenues in the range of 280 to 290 million euros, total R&D expenses of 130 to 140 million euros, and an EBIT in the range of minus 15 to plus 5 million euros. This guidance is based on the constant currency exchange rate and does not include any contributions from Monjuvi and any effects from potential in-licensing or core development deals for new development capital. The operational and financial guidance might potentially be impacted by the ongoing global COVID-19 crisis on MorphoSys' operations, including but not limited to the company's supply chain clinical trial conduct, as well as timelines for regulatory and commercial activities, and with this, I would like to turn the call back to Jean-Paul. Thanks, James.
For the full year 2020 will confirm our financial guidance will continue to expect group revenues in the range of 280 $290 million.
Totally R&D expenses of $130 million to $40 million.
And an EBIT in the range of minus 15 to plus five <unk>.
This guidance is based on constant currency exchange rate indefinite include any contributions from one jewelry revenues and any effects on potential in licensing accord development deals for new development candidates.
The operational and financial guidance might potentially be impacted by the ongoing logo covered 19 crisis on morphosis operations, including but not limited to the company supply chain clinical trial conduct as well as timelines for regulatory and commercial execution.
And with this I would like to turn the call back to Sean Paul.
Thanks.
Let me summarize our first have 2020 is slide 16.
Unknown Executive: Let me summarize our first half of 2020 as seen on slide 16. First, the FDA approval of Monjuvi in the U.S. is a major milestone achievement, demonstrating the progress in our journey to improve the lives of patients suffering from cellulose disease. Two, Bonjouvi is already commercially available in the U.S. As of today, as we prepare for a fast launch in the U.S. in order to bring this new, much-needed therapy to patients as quickly as possible. Three, we are committed to unlocking Taft DataMap's full potential with our partner, while also focusing on the other proprietary programs in our pipeline. And fourth, in conclusion, a great performance since the beginning of the year, delivering on what we have promised and reconfirming our full year 2020 guidance. We will now open the line for questions. Operator, please.
First the FBI approval, the phone jewelry and the U S is a major milestone achievements demonstrates in the advancement an hour journey to improve the lives of patients suffering from cellular diseases.
210 V is already commercially available in the U S. As of today as we prepared for fast launching D. U S. In order to bring this new much needed therapy to patients as quickly as possible.
Three we are committed when looking <unk> full potential with a partner while also focusing on the other popularity programs in our pipeline.
And fall and confusion grid performance since the beginning of the year.
<unk> on what we have promised and her confirming a full year 2020 guidance.
We will know open to line for questions.
Please.
Thank you, ladies and gentlemen will now begin the question and answer session. If you would like to ask a question peace zero and one on your telephone keypad now you will be advice on task. You question. If you change your mind and wish to mature your question. Please press zero and cheese.
Unknown Executive: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press 0 and 1 on your telephone keypad now. You will be advised when to ask your question. If you change your mind and wish to withdraw your question, please press 0 and 2. Please use only the handsets while asking a question. Okay, the first question is from Jason Butler of J&P Securities. Your line is now open, please go ahead.
Just depends how requested to use only handsets, while asking a question.
Okay. The first question is from Jason Butler JMP Securities. Your line of nine and please go ahead.
Hi, Thanks for taking the question and congrats on the progress.
Unknown Executive: Hi, thanks for taking the questions and congrats on the progress. For the first one on Ward 202, can you just talk about any protocol amendments that you have put in place for the members of the nephropathy study to manage through COVID and ensure both efficient enrollment and patient safety? And then secondly, as you look forward to obviously building commercial success with Monjove, how are you thinking about the proprietary pipeline and advancing it? What are your priorities there? What are the kinds of programs that you'll prioritize? Thanks. Let me take the first question. Jason, it's my fault.
First one more to them too.
You just talk about any protocol amendments that you have.
Put in place for them members nephropathy study to manage through Cove. It in.
Sure boat fishing enrollment in patient safety.
And then secondly.
As you look forward to obviously building commercial success with Manju V. How are you thinking about the proprietary pipeline and advancing what are your priorities. There what are the kind of program, but you'll you'll prioritize thanks.
Let me take the first question Jason.