PLANEGG (dpa-AFX) - Biotech company Morphosys surprisingly reduced its losses in the past quarter despite a drop in sales. Although the company's earnings fell by ten percent year-on-year to 53.2 million euros, because the Bavarian company sold fewer drugs to its partner Incyte. Nevertheless, the operating loss fell by eight percent to minus 50.5 million euros, as the SDax-listed company announced on Wednesday evening after the US close in Planegg near Munich.

According to the company, Morphosys had to shoulder lower costs for research and development, but also incurred fewer expenses in sales. This had a positive effect on earnings in day-to-day business. Analysts, on the other hand, had expected a significantly higher operating loss. Below the line, the net loss fell by almost 70 percent to minus 74 million euros. As at the start of the year, Morphosys benefited from a valuation effect resulting from the reassessment of liabilities within collaborations. In addition, exchange rates had had a significant negative impact in the prior-year quarter. The Management Board is sticking to its annual targets./tav/jsl/he