DGAP-News: Evotec reports continued strong revenue growth in Q1 2012
(firmenpresse) - DGAP-News: Evotec AG / Key word(s): Quarter Results
Evotec reports continued strong revenue growth in Q1 2012
10.05.2012 / 07:27
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Evotec reports continued strong revenue growth in Q1 2012
- 33% REVENUE GROWTH
- NEW PHARMA COLLABORATIONS THROUGH GROWTH INITIATIVES
- GUIDANCE 2012 CONFIRMED
Hamburg, Germany - 10 May 2012: Evotec AG (Frankfurt Stock Exchange: EVT,
TecDAX) today reported financial results and corporate updates for the
first quarter of 2012.
- Growth trend continues; implementation of Action Plan 2016 reflected in
Q1 financial results- Group revenues +33% to EUR20.1 m - Marginal
operating loss of EUR1.3 m due to high upfront investments and ramp up
of EVT Execute - Continued strong liquidity position of EUR57.1 m
excluding already achieved Phase III milestone from Andromeda/Teva
(EUR3.9 m)
- EVT Execute: Upfront investments for business growth with planned
temporary effect on gross margin; Evotec's Drug Discovery platform
significantly expanded with state of-the-art protein production
capabilities and capacity - Extension of proteomics agreement with
Janssen Pharmaceutica - $10 m multi-year agreement with the United
States Environmental Protection Agency (EPA) for Compound Management
(after period-end)
- EVT Integrate: Expanding portfolio of discovery alliances and good
progress in on-going collaborations - Evotec and Active Biotech extend
and expand medicinal chemistry collaboration (after period-end)- Evotec
and IR Pharma establish drug discovery alliance in the field of
respiratory diseases
- EVT Innovate: Development partnerships and focused research investments
in innovation for significant upside potential - Phase III DiaPep277
programme delivers EUR3.9 m milestone from Andromeda/Teva- EVT 401
partnered in China with Conba especially for inflammation (after
period-end)- Evotec and Harvard University build strategic alliance in
Kidney Diseases ('CureNephron')- Evotec and 4-Antibody form strategic
alliance to innovate antibody identification and selection (after
period-end)- EUR0.5 m option fee achieved under the beta cell
regeneration collaboration with MedImmune
- Squeeze-out process for DeveloGen completed
- Financial guidance for 2012 confirmed- Continued double-digit revenue
growth to EUR88 to 90 m - Further increase in operating result compared
to 2011 - Strong liquidity position above EUR60 m, despite significant
research expenses and investments in upgrading capabilities and
capacity
1. Operational performance
Evotec's operational performance for the first quarter of 2012 reflected
the continued strong growth path of the Company as well as the investments
necessary to support and sustain long-term collaborations following the
implementation of Evotec Action Plan 2016.
Total Group revenues for the first quarter of 2012 increased by 33% to
EUR20.1 m (2011: EUR15.1 m) including a milestone earned in Evotec's
development partnership with Andromeda/Teva with DiaPep277 (EUR3.9 m) as
well as contributions from the acquisitions of Evotec Munich and Evotec San
Francisco totalling EUR2.9 m. As anticipated, higher cost of revenues and
higher operating expenses resulted in an operating loss for the first
quarter of 2012 of EUR(1.3) m (2011: EUR(0.8) m). As has been repeatedly
stated, the operating result of Evotec varies significantly between
quarters as a result of the specific timing of performance based milestones
and partnering events having a major impact on specific quarterly reporting
periods. Overall, the Company is on track to achieve increased full-year
profitability over 2011 (before impairment and changes in contingent
consideration, if any). Liquidity including cash, cash equivalents and
investments at the end of March 2012 amounted to EUR57.1 m excluding the
milestone payment for DiaPep277 that was recorded as a receivable at 31
March 2012.
2. Evotec Action Plan 2016 - Innovation Efficiency
Update on discovery alliances, development partnerships and status of
pre-clinical programmes
A. EVT Execute: Business growth leads to upfront investments with temporary
effect on gross margin; Evotec's Drug Discovery platform further expanded
with state-of-the-art protein production capabilities and capacity
The need to improve R&D productivity is increasing pressure on
pharmaceutical companies to outsource drug discovery and development. There
is a clear trend towards large, multi-year contracts. EVT Execute delivers
an increasingly industrialised high-tech infrastructure to Evotec's
partners in long-term relationships. The goal is to optimise the capital
and innovation efficiency of the resources dedicated to each target that
our partners are working on. Partners working with Evotec can access the
latest science, and globally the best-in-class technology infrastructures.
Extension of proteomics agreement with Janssen Pharmaceutica
In March 2012, Evotec extended its long-term collaboration with Janssen
Pharmaceutica. The alliance was originally signed in 2007 with Kinaxo
(Evotec Munich), and further extended in 2009. Under the agreement Evotec
will apply its proprietary high-end proteomics technologies to enable
comprehensive cellular analyses of Janssen's oncology drugs under
development. Evotec's unique proteomics platform dissects cancer signal
transduction processes and their response to drug treatment, delivering
unrivalled cellular mode of action information.
Multi-year agreement with the United States Environmental Protection Agency
(EPA) for Compound Management (after period-end)
In April 2012, Evotec entered into a multi-year compound management
agreement with the United States EPA. The contract covers a period of five
years and has a total value of up to EUR7.7 m (approximately $10 m). Under
the agreement Evotec, through its San Francisco operations, will provide
chemical procurement, analysis, sample preparation, and management services
in support of the EPA's National Computational Centre for Toxicology
(NCCT). Services provided will support bioactivity profiling of the EPA's
ToxCast(TM) (Prioritisation of Environmentally Relevant Chemicals) Compound
Library.
B. EVT Integrate: Expanding portfolio of discovery alliances and good
progress in on-going collaborations
Evotec is one of the few drug discovery businesses that can execute a
comprehensive outsourcing strategy. EVT Integrate represents the most
comprehensive and systematic integrated drug discovery process for drug
targets in Evotec's key areas of expertise. In this process, Evotec does
not simply lower costs for its customers; most importantly, the Company
significantly reduces the time to go no-go decision points for these
projects. Evotec continues to expand its core business expertise around
metabolic disease, pain, oncology, and CNS drug targets. In these
integrated approaches, Evotec shares some discovery risks with its partners
in exchange for future returns.
Evotec and Active Biotech extend and expand medicinal chemistry
collaboration (after period-end)
In April 2012, Evotec extended and expanded its medicinal chemistry
collaboration with Active Biotech to further advance an existing programme,
which has entered the lead optimisation phase after successful hit
identification activities. The programme aims to find novel small molecule
modulators of a priority biological target, selected by Active Biotech,
involved in immune disorders and cancer.
The programme was initiated in 2010 with a high throughput screen followed
by extensive hit validation and hit-to-lead activities, leveraging Evotec's
hit identification and integrated medicinal chemistry platforms.
Evotec and IR Pharma establish drug discovery alliance in the field of
respiratory diseases
In February, Evotec and IR Pharma entered into an exclusive strategic
alliance to provide integrated drug discovery solutions to pharmaceutical
and biotech companies in the field of respiratory diseases. IR Pharma has
outstanding expertise in respiratory pharmacology including a range of
highly validated models, focusing on Asthma, Cough and Chronic Obstructive
Pulmonary Disease (COPD), which ideally complement Evotec's powerful drug
discovery platform. As part of this exclusive collaboration, Evotec is now
positioned to offer a seamless, fully integrated respiratory and
inflammation focused drug discovery process to its partners, from target to
nomination of pre-clinical development candidates.
C. EVT Innovate: Development partnerships and focused research investments
in innovation provide upside potential
Evotec is committed to delivering solutions for some of the largest and
most pressing global medical needs. With EVT Innovate the Company brings
forward the most promising scientific ideas to make a difference in key
medical areas. As part of Evotec's ongoing research initiatives, certain
pre-clinical assets (e.g. BetaCell relevant molecules, etc.) are progressed
to potential entry points for drug discovery alliances. Evotec partners its
proprietary assets to pharmaceutical companies for upfront payments,
ongoing research fees and significant milestones and royalties. Through
this strategy Evotec is building a pipeline without bearing the digital
risk normally involved in such projects. To reduce Evotec's risk profile
the Company continues to seek strategic product development partnerships to
fund the further development of its clinical assets. Evotec's current
clinical stage portfolio comprises several development partnerships fully
funded by its partners.
DiaPep277 programme delivers EUR3.9 m milestone from Andromeda/Teva
The first Phase III study conducted by Andromeda Biotech and Teva
Pharmaceutical (Andromeda/Teva) with DiaPep277, a synthetic peptide in
development for the treatment of type 1 diabetes, was largely completed in
2011 and met all primary endpoints. A EUR3.9 m milestone was triggered upon
completion of the report of this Phase III study and continued clinical
development in Q1 2012. The clinical data fully supports the continuation
of the development programme.
EVT 401 partnered in China with Conba especially for inflammation (after
period-end)
In April 2012, Evotec granted Zhejiang Jinhua Conba Bio-pharm. Co., Ltd.
(Conba Pharmaceutical) a development and marketing license for its P2X7
antagonist, EVT 401, in China for human indications with exception of
ophthalmological, chronic obstructive pulmonary disease (COPD) and
endometriosis pain. Evotec will obtain a small upfront payment and is
eligible for development and commercial milestone payments in excess of
EUR60 m, and tiered double-digit royalties on net sales. The agreement
grants Conba Pharmaceutical exclusive rights to develop and commercialise
the compound for the Chinese market. Evotec will have the right to
reference clinical data produced by Conba Pharmaceutical to support
potential further development of EVT 401 in other territories.
P2X7 receptor antagonism may provide a novel approach for the treatment of
inflammatory conditions. Evotec completed the first Phase I, single dose
study of EVT 401 in 2010. Conba Pharmaceutical will initiate further
clinical trials with EVT 401 in China in inflammatory diseases.
Evotec and Harvard University build strategic alliance in kidney disease
('CureNephron')
In January 2012, Evotec announced a second strategic alliance with Harvard
University, this time including Brigham and Women's Hospital aimed at
discovering and developing new biomarkers and treatments in the field of
kidney disease ('CureNephron'). The first collaboration ('CureBeta') was
established in March 2011 to develop new diabetes therapies targeting beta
cell regeneration.
The alliance will pursue systematic and unbiased approaches towards the
identification of kidney disease relevant mechanisms with particular
interest in mechanisms with disease modifying potential. This programme 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, conditions associated with high morbidity
and mortality.
This new collaboration is a great example of joining forces across
traditional academic and industrial boundaries to rapidly advance
ground-breaking science into medicines.
Evotec and 4-Antibody form strategic alliance to innovate antibody
identification and selection (after period-end)
In May 2012, Evotec and 4-Antibody entered into a strategic collaboration
agreement under which Evotec will offer a fully integrated antibody
discovery and development service expanding on its leading small molecule
drug discovery and development expertise. 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. Evotec will initially pay a EUR 2m access fee to 4-Antibody, which
will be fully reimbursed from future returns. Going forward the parties
will share profits.
EUR0.5 m option fee achieved under the beta cell regeneration collaboration
with MedImmune
In March 2012, a small EUR0.5 m expansion option fee was achieved under the
beta cell regeneration collaboration with MedImmune, which was signed in
2010. This clearly underlines the strategic commitment of both parties for
this project.
3. Acquisition update
Squeeze-out process for DeveloGen completed
In January 2012, Evotec completed the squeeze-out process for DeveloGen AG,
which has been renamed to Evotec (Göttingen) AG, by formal registration at
the trade register. This triggered payments to the former minority
shareholders of DeveloGen of EUR12.75 per share, summing up to a total of
EUR176,217.75.
In addition, all tranches of shares from the acquisition of Kinaxo in April
2011 are no longer subject to any lock-up provisions as of 17 April 2012.
4. Guidance 2012
Financial guidance for 2012 confirmed
All financial targets published on 20 March 2012 in Evotec's 2011 Annual
Report (page 64) remain unchanged. In 2012, Evotec forecasts double-digit
growth of Group revenues to reach EUR88 to 90 m. R&D expenses in 2012 will
remain broadly in line with 2011 levels at approximately EUR10 m. The
Company will continue to focus on first-in-class innovation. Evotec's Group
operating result before impairment and changes in contingent consideration,
if any, for the year 2012 is expected to further improve over 2011.
However, operating result may vary significantly between quarters and prior
year periods as the timing of performance based milestones and partnering
events cannot be predicted within specific quarterly reporting periods.
2012 will be another year of significant investment in capital
expenditures, even exceeding the high levels of 2011. More than EUR10 m are
planned to be invested in the long-term upgrading of Evotec's capacities.
As a significant proportion of the cash generated from operations is thus
reinvested, the Company expects to maintain its liquidity above EUR60 m at
the end of 2012, at constant year-end 2011 currencies, excluding any
potential cash outflow for M&A transactions and related payments.
Webcast / Conference Call
The Company is going to hold a conference call to discuss the results as
well as to provide an update on its performance:
Conference call details:
Date: Thursday, 10 May 2012
Time:
09.30 a.m. CEST
08.30 a.m. BST
03.30 a.m. US time (East Coast)
From Europe:
+49-(0)-6103-485-3001 (Germany)
+44-207-153-2027 (UK)
From the US: +1-480-629-9822
Access Code: 4534463
A simultaneous slide presentation for participants dialing in via phone is
available at www.equitystory.com, password: evotec0512.
Webcast details
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.
A replay of the conference call will be available for 24 hours and can be
accessed in Europe by dialing +49 69 58 99 90 567 (Germany) or +44 207 959
6720 (UK) and in the US by dialing +1 303 590 3030. The access code is
4534463#. The on-demand version of the webcast will be available on our
website:
http://www.evotec.com /Investors/Financial-Reports-2010-2012
Contact Evotec AG:
Dr Werner Lanthaler, Chief Executive Officer, Phone: +49.(0)40.56081-242,
werner.lanthaler(at)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.
First Quarter 2012 Results
Key Figures of Consolidated Interim Income Statements
Evotec AG and Subsidiaries
Euro in thousands except share data and per share data
January to March* Before changes in contingent consideration.
2012 2011 Change in
%
Revenues 20,110 15,106 33
Gross margin in % 32.5 39.4
Research and development expenses 1,912 2,314 (17)
Selling, general and administrative 4,432 3,789 17
expenses
Amortisation of intangible assets 526 275 91
Other operating income 234 1,600 (85)
Other operating expenses 1,183 1,983 (40)
Operating result (1,289) (810) (59)
Operating result* (974) (810) (20)
Net result (1,995) (388) (414)
Weighted average shares outstanding 116,987,5 114,262,2 2
97 16
Net result per share (basic and
diluted) (0.02) 0.00
Key Figures of Consolidated Interim Statement of Financial Positions
Evotec AG and Subsidiaries
Euro in thousands
31 March 31 Dec Change inEnd of Corporate News
2012 2011 %
Cash and investments 57,146 62,428 (8)
Working capital (3,444) (8,722) 61
Current and non-current loans and finance
lease obligations 17,506 15,566 12
Stockholders' equity 145,213 147,245 (1)
Total assets 214,242 218,213 (2)
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Language: English
Company: Evotec AG
Manfred Eigen Campus / Essener Bogen 7
22419 Hamburg
Germany
Phone: +49 (0)40 560 81-0
Fax: +49 (0)40 560 81-222
E-mail: info(at)evotec.com
Internet: www.evotec.com
ISIN: DE0005664809
WKN: 566480
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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