Forward Step by Step With Action Plan 2016 - Continued Revenue Growth -
Significant Pipeline Progress
HAMBURG, Germany, March 26, 2013 (GLOBE NEWSWIRE) -- Evotec AG (Frankfurt:EVT)
(TecDAX) (ISIN:DE0005664809) today reported financial results and corporate
updates for the fiscal year ended 31 December 2012.
*Growth trend continues
- Revenues +9% to € 87.3 m
- Operating result adjusted € 1.4m; net income € 2.5 m
- Operating cash flow +18% to €12.0m
- Strong and stable liquidity position of €64.2m
- Expected revenues of €90m to €100m in 2013
*Strong progress in all business units (EVT Execute /Integrate/Innovate)
- Multiple new alliances and contract extensions (e.g. Bayer,CHDI and NIH)
- Acceleration of EVT Innovate strategy through alliances with Harvard and
- Multiple milestones achieved with e.g. Andromeda/Teva, Boehringer
Ingelheim, MedImmune, Novartis and Ono
- Strategic alliance with 4-Antibody
- Acquisition of CCS Cell Culture Service GmbH (after period-end)
*Significant short- and mid-term pipeline catalysts
- DiaPep277^®, positive Phase III results confirmed, data of secondpivotal
trial to come end of 2014
- Large Phase IIb trial started with EVT302 in Alzheimer`s Disease
- Multiple clinical trials expected to start and read out in 2013/2014 (e.g.
Phase II with EVT100 series in depression, several Phase I programmes in
oncology, pain and other indications)
1. Operational performance – Good revenue growth, Milestones drive
Revenue growth of 9%, operating result, R&D investments and liquidity in line
with adjusted guidance
Evotec achieved continued profitable growth in 2012 with revenues up 9% to
€87.3m (2011: €80.1m) and a net income of €2.5m (2011: €6.7m). The
shift in revenues from milestones from Q4 2012 into 2013 had a negative effect
on profitability, which as a result was lower than originally guided.
Growth in revenues was driven by the increase in revenues within the Company's
drug discovery alliances and significant milestone payments through its
collaborations in the amount of €12.3m(2011: €10.5m).
The gross margin of the Group decreased to 35.6% (2011: 43.7%). The margin
difference compared to 2011 is mainly attributable to a decrease in upfront
payments, the ramp-up of capacities in EVT Execute, lower margin compound
management revenues and the move into the new Manfred Eigen Campus at the
start of 2012.
Evotec's operating result for 2012 amounted to €(3.2)m (2011:€5.2m),
which primarily was due to a lower gross profit and an impairment of
intangible assets in the amount of €3.5m (2011:€ 0.6m net of reversal of
impairment). The impairment was mainly the result of the termination of the
VR1 partnership with Pfizer. The operating result before impairment and
changes in contingent consideration was positive at € 1.4 m (2011:€5.8m).
Net income amounted to €2.5m (2011:€6.7m). The improvement in the net
income primarily resulted from deferred tax income amounting to €8.3m
R&D expenditure amounted to €8.3m (2011: €8.4m). Evotec's unfunded
research focused on selected discovery projects in the key areas of CNS,
oncology, inflammation, metabolic and kidney disease such as the CureBeta and
CureNephron alliances with Harvard University.
Although there were significant investments in capital expenditures of €8.2m
(2011:€8.1m) as well as in intangible assets and earn-out payments, the
Company's liquidity position increased to €64.2m (2011:€62.4m), this is
composed of cash and cash equivalents (€39.1m) and of investments
(€25.1m). Therefore Evotec is very well-financed.
2. Evotec Action Plan 2016 – Step by step forward for higher Innovation
Update on discovery alliances, development partnerships and status of
Action Plan 2016 – Innovation Efficiency is the strategy framework that was
initiated in March 2012. EVT Execute aims to deliver cost efficient and
industrialised services for drug discovery on a fee-for-service basis. EVT
Integrate is the systematic approach to progress targets through the
pre-clinic, on a research payments, milestones and royalties success basis.
EVT Innovate involves accelerating promising drug discovery ideas and assets
to partnerships with upfront payments, premium research fees, milestones and
EVT Execute – Continued trend towards outsourcing services for biotech and
Pharma; important new and extended collaborations
With CHDI, a privately funded not-for-profit research organisation dedicated
to developing therapies for Huntington's disease (HD), Evotec extended its
collaboration until the end of 2015. This contract extension could be worth up
to $41m in research payments for Evotec.
With the United States Environmental Protection Agency (EPA) Evotec entered
into a multi-year compound management agreement. The contract covers a period
of five years and has a total value of up to €7.7m (approximately$10m).
With the National Institutes of Health (NIH) Evotec signed a multi-year
agreement for the operation of a small molecule repository (SMR). The contract
is funded in its entirety by NIH, covers a period of up to 10 years and has a
total estimated value of up to €60m (approximately $75m).
With 4-Antibody Evotec acquired access to a fully integrated antibody
discovery and development service. Evotec's novel and unique high throughput
and high content screening approach coupled with 4-Antibody's high throughput
antibody selection approach will allow screening of large and diverse antibody
populations for desired functionality and activity at a much earlier stage of
selection. This unique combined approach is expected to substantially reduce
attrition rates at later development stages.
Signed in December 2012 and effective 01 January 2013, Evotec acquired Cell
Culture Service GmbH (CCS), a Hamburg-based company which supports the cell
culture needs of a world-wide customer base of biotech and pharmaceutical
companies. CCS is one of the leading suppliers of custom cells and cell-based
reagents such as recombinant assay cell lines, assay-ready Frozen Instant
Cells, qualified membranes and proteins for high throughput screening with
more than 10 years experience in bulk cell production.
EVT Integrate – New strategic multi-target alliance with Bayer and several key
With Bayer Evotec entered into a five-year, multi-target collaboration with
the goal of developing three clinical candidates for the treatment of
endometriosis. Evotec received €12m as an upfront payment. In total, Evotec
could receive pre-clinical, clinical and sales milestones of up to €580m
plus royalties. Under the terms of the deal both parties contribute innovative
drug targets and high-quality technology infrastructures and share the
responsibility for early research and pre-clinical characterisation of
candidates in endometriosis.
The progress and success of existing core alliances was significant.
Milestones were achieved within the alliances with Boehringer Ingelheim, Ono
and Novartis. In 2012 Evotec was able to secure multiple pre-clinical
milestones totalling € 12.3 m.
EVT Innovate – significant clinical outcomes ahead, Cure X initiative driven
by Harvard and Yale
The first Phase III trial on DiaPep277^® demonstrated the achievement of both
its primary and secondary endpoints. Moreover it was announced that the
recruitment of the second Phase III trial was closed in September 2012.
Results of this second pivotal trial are expected towards the end of 2014.
Roche started a substantial Phase II trial with EVT302 at the end of 2012
aiming at recruiting 450 patients in more than 120 centres worldwide to assess
the efficacy and safety of this compound in patients with moderate severity
Alzheimer's disease (AD). This clinical trial is one of the very few
late-stage trials in this AD patient population. Results are expected during
the second half of 2015.
Evotec entered into a license agreement with Janssen for its NR2B subtype
selective NMDA-antagonist portfolio for development against diseases in the
field of depression. Evotec received an upfront payment of $2m with an
additional $6m to be paid upon confirmation of certain pre-clinical
properties of the candidates. Evotec could receive up to $67m for the first
product depending on certain clinical, regulatory and launch events, as well
as additional milestone payments upon successful completion of certain events
for additional indications and/or compounds. Evotec could be entitled to an
additional $100m in commercial milestones depending on meeting certain sales
thresholds and royalties which could be as high as double-digit on certain
future sales of royalty bearing products. It is the Company`s expectation that
Janssen will initiate Phase II clinical trials in depression during the course
With Janssen, Evotec also announced the licensing of a portfolio of small
molecules and biologics designed to trigger the regeneration of
insulin-producing beta cells. The agreement between Evotec and Janssen
triggered an upfront payment of $8m. Upon achievement of certain
pre-clinical, clinical, regulatory and commercial goals, Evotec could receive
milestone payments of up to $300m per product. In addition, Janssen will pay
royalties on future sales of any products that result from this collaboration.
Evotec achieved key milestones within its product development alliance with
MedImmune in the field of beta cell regeneration and received two milestone
payments totalling € 1 m. EVT770 is currently in pre-clinical development and
could enter trials within 24 months.
In addition Evotec signed two co-development agreements with Haplogen and
Apeiron. With Haplogen Evotec aims to discover and develop small molecules
against viral infectious diseases and with Apeiron the objective of developing
immunomodulatory lead compounds for the treatment of cancer.
After the success of CureBeta with Harvard University, Evotec and Harvard
started their second strategic alliance, including Brigham and Women's
Hospital and the University of Southern California aimed at discovering and
developing new biomarkers and treatments in the field of kidney disease. This
programme CureNephron is designed to deliver and exploit novel therapeutic
targets as well as biomarkers that allow more accurate diagnosis, monitoring
and treatment of chronic and acute kidney disease.
An open innovation alliance was formed with Yale University. Under the
agreement, Evotec and Yale intend to leverage first rate science performed at
Yale University together with Evotec's drug discovery infrastructure and
expertise into highly innovative discovery approaches in diseases of high
unmet medical need ready for partnering.
Two product development collaborations were terminated during the course of
2012. The EVT401 agreement in animal health and the VR1 collaboration with
Pfizer ended, because of strategic portfolio reviews pursued by the respective
3. Guidance 2013
In 2013, total Group revenues are expected to grow to a level between €90m
to €100m. This assumption is based on the current order book, expected new
contracts and contract extensions and most importantly on the achievement of
certain milestone payments.
Evotec expects research and development (R&D) expenses in 2013 to increase
above the levels of 2012. This is primarily due to additional investments in
the strategic Cure X franchise primarily in the fields of metabolic diseases
and regenerative medicine. In total, R&D expenditure is expected to be around
€10m in 2013.
On that basis Evotec's Group operating result before impairment and changes in
contingent consideration, if any, for the year 2013 is expected to improve
over 2012. The Company expects to maintain its liquidity above €60m at the
end of 2013, excluding any potential cash outflow for M&A transactions and
Webcast / Conference Call
Evotec will broadcast its press & analyst conference in Frankfurt live on the
internet. The Management Board will inform you about the FY 2012 results as
well as update you on the status of "Action Plan 2016 – Innovation Efficiency
in Drug Discovery" and present an outlook for the fiscal year 2013.
Date: Tuesday, 26 March 2013
Time: 9.00 am CET (08.00 am GMT/04.00 am EDT)
To join the audio webcast and to access the presentation slides you will find
a link on our home page www.evotec.com shortly before the event.
For those who prefer to listen to the presentation via phone, please dial:
From Germany: +49 (0)69 20 17 44 210
From UK: +44 207 153 9154
From USA: +1 877 423 0830
Access Code: 638618#
The on-demand version of the webcast will be available on our website:
www.evotec.com > Investors > Events > Financial Calendar.
ABOUT EVOTEC AG
Evotec is a drug discovery alliance and development partnership company
focused on rapidly progressing innovative product approaches with leading
pharmaceutical and biotechnology companies. We operate worldwide providing the
highest quality stand-alone and integrated drug discovery solutions, covering
all activities from target-to-clinic. The Company has established a unique
position by assembling top-class scientific experts and integrating
state-of-the-art technologies as well as substantial experience and expertise
in key therapeutic areas including neuroscience, pain, metabolic diseases as
well as oncology and inflammation. Evotec has long-term discovery alliances
with partners including Bayer, Boehringer Ingelheim, CHDI, Genentech, Janssen
Pharmaceuticals, MedImmune/AstraZeneca and Ono Pharmaceutical. In addition,
the Company has existing development partnerships and product candidates both
in clinical and pre-clinical development. These include partnerships with
Boehringer Ingelheim, MedImmune and Andromeda (Teva) in the field of diabetes,
and with Roche in the field of Alzheimer's disease. For additional information
please go to www.evotec.com.
FORWARD LOOKING STATEMENTS — Information set forth in this press release
contains forward-looking statements, which involve a number of risks and
uncertainties. The forward-looking statements contained herein represent the
judgement of Evotec as of the date of this report. Such forward-looking
statements are neither promises nor guarantees, but are subject to a variety
of risks and uncertainties, many of which are beyond our control, and which
could cause actual results to differ materially from those contemplated in
these forward-looking statements. We expressly disclaim any obligation or
undertaking to release publicly any updates or revisions to any such
statements to reflect any change in our expectations or any change in events,
conditions or circumstances on which any such statement is based.
Fiscal Year 2012 Results
Key figures of consolidated income statement
Evotec AG and subsidiaries
In T€ except share data and per share data
January to December
2012 2011 Change in %
Revenues 87,265 80,128 9
Gross margin in % 35.6 43.7
Research and development expenses (8,340) (8,437) -1
Selling, general and administrative (16,301) (15,760) 3
Amortisation of intangible assets (2,768) (1,703) 63
Impairment of intangible assets (3,505) (2,058) 70
Reversal of impairment of intangible -- 1,501 -100
Other operating income 2,202 1,426 54
Other operating expenses (5,513) (4,747) 16
Operating income (expense) (3,202) 5,207 -161
Operating income* 1,401 5,764 -76
Net income 2,478 6,651 -63
Weighted average shares outstanding 117,295,847 116,022,213
Net income per share (basic and diluted) 0.02 0.06 -66
* Excluding impairments and reversal of impairments and changes in contingent
Key figures of consolidated statement of financial position
Evotec AG and subsidiaries
31 Dec 2012 31 Dec 2011 Change in %
Cash, cash equivalents and investments 64,159 62,428 3
Working capital 3,287 (11,157) -71
Current and non-current loans and finance 17,402 15,566 12
Stockholders' equity 152,547 147,245 4
Total assets 225,427 218,213 3
CONTACT: Dr. Werner Lanthaler
Chief Executive Officer
+49.(0)40.560 81-333 Fax
Manfred Eigen Campus
Essener Bogen 7
22419 Hamburg (Germany)
Head of Corporate Communications
+49.(0)40.560 81-222 Fax
Manfred Eigen Campus
Essener Bogen 7
22419 Hamburg (Germany)
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