Evotec's 2009 Results: Significant Step towards Sustainability
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Evotec AG / Evotec's 2009 Results: Significant Step towards Sustainability processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Hamburg, Germany - 25 March 2010: Evotec AG (Frankfurt Stock Exchange: EVT,
TecDAX) today reported financial results and corporate updates for the year
ended 31 December 2009.
Major Achievements:
· Growth of business and execution of restructuring programme lead to
strong 2009 performance with all financial targets achieved
- Revenues +8%; operating result before exceptional items +57%
- Positive Q4 operating result before exceptional items
- Liquidity position of > ? 70 m; exceeding guidance
- Impairment of higher risk programmes reflecting Evotec's strategy
· Discovery collaborations provide stable basis for future growth
- Several new alliances and contract extensions including Biogen Idec, CHDI
(after period-end) and Ono Pharmaceutical
- Strategic capability and capacity expansion through acquisition of Indian
RSIPL
· Strong performance in innovative, risk-shared alliances combining
high-end technologies and disease know-how
- New alliances with Boehringer Ingelheim, Vifor (after period-end)
- Important milestones demonstrate progress achieved
· Product development alliance with Roche with significant upside but no
downside risk; 2011 $ 65 m milestone opportunity
- Successful completion of first-in-man study with EVT 103
(after period-end)
- Positive feedback from the FDA to initiate Phase II with EVT 101
(after period-end)
· Guidance 2010 - accelerated path to profitability and growth
- Revenue growth of at least 15%; strongest February order book ever
- Significantly improved operating result before impairment with profitability
no later than 2012
- Liquidity of > ? 64 m; cash consumption markedly reduced
1. Operational performance
Growth of business and execution of "Evotec 2012 - Action Plan to Focus and
Grow" lead to strong 2009 financial performance
Based on the Action Plan 2012, Evotec decided in March 2009 to streng-then its
discovery alliances, creating the central vehicle for growth, and to implement
strict cost cutting and restructuring measures. The Company reduced headcount in
administrative and clinical development functions, reprioritised its R&D
activities, concentrated its operations in Europe and closed the former facility
of Renovis, Inc. in South San Francisco.
These strategic measures are clearly reflected in the financial results for the
2009 fiscal year. Evotec's discovery alliances are growing significantly and the
Company increased and delivered on all financial targets. Total Group revenues
amounted to EUR 42.7 m, an increase of 8% compared to the same period of the
previous year (2008: EUR 39.6 m). The increase is particularly pleasing because,
in 2008, Evotec collected three milestones amounting to payments of EUR 8.5 m as
part of its strategic alliance with Boehringer Ingelheim, while in 2009
milestone payments from this collabo-ration added up to EUR 4.0 m. Due to this
strong top-line performance and significant reductions in operating expenses
(R&D expenses -51%, SG&A cost -16%) Evotec's operating loss before exceptional
items decreased by 57% to EUR 19.6 m (2008: EUR 45.5 m) for the fiscal year and
was positive for the fourth quarter amounting to EUR 2.0 m (2008: EUR (10.4) m).
The fourth quarter 2009 was the first one in which the impact of Evotec's
strategic restructuring became fully visible. R&D expenses de-clined by 87% and
SG&A cost adjusted for severance payments by 30% compared to the same period of
the prior year, a strong basis to develop the Company to profitability.
The Company reduced its R&D cost base significantly through the partner-ing of
the EVT 100 compound series to Roche, the discontinuation of EVT 302 due to its
failure in smoking cessation, as well as the reduction of early-stage discovery
projects. By only supporting the commercially most promis-ing programmes and
seeking to aggressively partner those with pharma partners, Evotec de-risked its
pipeline substantially. Reflecting this strat-egy, higher risk programmes were
impaired during the year, i.e. EVT 201, EVT 401 and the VR1 programme, leading
to total impairment charges of EUR 18.2 m. Including all impairments and EUR
4.8 m of restructuring ex-penses, Evotec's 2009 operating loss decreased by 42%
to EUR 42.3 m (2008: EUR 73.2 m).
With EUR 70.6 m Evotec ended the year 2009 above its liquidity target of > EUR
65 m.
2. Discovery alliances update
The productivity challenge facing the pharmaceutical industry is set to drive an
increase in strategic outsourcing which will likely lead to larger outsourc-ing
contracts favouring bigger partners. Since the industry is highly frag-mented
there is a leadership gap which Evotec may successfully fill. Due to its scale,
attractive growth profile and its strong reputation in the industry Evotec is
ideally positioned to take full advantage of these developments.
Discovery alliances provide stable basis for future growth
Several new alliances and contract extensions
Throughout the year Evotec won new deals with several customers, includ-ing
Cubist Pharmaceutical, Alios Biopharma and with Biogen Idec. The Company also
extended an important collaboration with its strategic partner Ono
Pharmaceutical, initiating a new discovery programme on an ion channel target,
and a strategic alliance with CHDI (after period-end) to find new treatments for
Huntington's disease. These important contracts clearly demonstrate the value
Evotec brings to its alliance partners in the area of drug discovery.
Strategic capability and capacity expansion through acquisition of RSIPL
To best position the Company for growth in the discovery outsourcing mar-ket and
optimise its cost structure for large alliances, Evotec has initiated an Asian
capacity and capability expansion strategy with its purchase, in August 2009, of
a 70% controlling stake in the Indian company Research Support International
Private Limited (RSIPL). The company was fully inte-grated as Evotec (India)
Private Ltd.
Strong performance in innovative, risk-shared alliances combining high-end
technologies and disease know-how
The integration of high-end technologies and disease know-how represents the
strategic 'sweet spot' in this industry. Evotec has carried on adding to and
enhancing its technology platform (e.g. through the addition of the Summit
zebrafish screening operations) and therapeutic area focused ex-pertise to
become the clear partner of choice for integrated alliances with pharmaceutical
companies in which both parties share risk and reward of discovery programmes.
New alliances with Boehringer Ingelheim and Vifor
Based on the successful collaboration to date, Boehringer Ingelheim signed a
new, minimum four-year extension of its discovery collaboration with Evotec.
Jointly, both companies aim to identify novel therapeutics in inno-vative
disease-focused programmes with a focus on oncology targets. Evotec receives
research payments, payments for the achievement of pre-clinical milestones as
well as long-term upside through potential clinical milestone achievements and
royalties. In January 2010, Evotec also signed a significant integrated alliance
with Vifor Pharma to jointly identify a pre-clinical candidate for the treatment
of anaemia.
Important milestones demonstrate progress in disease focused alliances
In 2009, the Company achieved two research milestones in its multi-year drug
discovery alliance with Boehringer Ingelheim, leading to payments of EUR 4.0 m.
Evotec also achieved a milestone with Cardioxyl Pharmaceuti-cals for the
compound, CXL-1020, that was successfully moved into clinical testing in heart
failure, and with Ono for the progression of novel protease inhibitors into lead
optimisation.
Product development alliance with Roche with significant upside but no downside
risk
In March 2009, Evotec signed a significant alliance with Roche to unleash the
commercial upside of the EVT 100 compound family. This is a joint de-velopment
programme where Evotec is responsible for conducting the clini-cal Phase II
development of EVT 101 in patients with treatment-resistant depression. The
costs of that study are fully borne by Roche and so are the development costs of
the follow-on molecule EVT 103. Therefore the downside risk for Evotec is zero,
while the upside may be significant.
Successful completion of first-in-man study with EVT 103
Early 2010, Evotec completed the clinical part of the first-in-human Phase I
study with EVT 103. The compound was safe and very well tolerated after oral
single and multiple dose administration, with excellent bioavailability and only
a minimal effect of food on the kinetic profile.
Positive feedback from the FDA to initiate Phase II with EVT 101
For EVT 101, the lead compound in the strategic alliance with Roche, Evotec has
received approval from the FDA to initiate the Proof-of-Concept study. The study
will start recruiting patients in the second quarter of 2010.
If Roche exercises its buy-back option after completion of the Phase II study,
Evotec will receive a $65 m payment in exchange for returning the compounds. The
total potential value of the deal exceeds $300 m of development and sales
performance commercial payments plus potential double-digit commercial payments.
3. Guidance 2010
Revenue growth of at least 15%, significantly improved operating re-sult before
impairment with profitability no later than 2012 and liquid-ity of > EUR 64 m
In 2010, total Group revenues before out-licensing income are expected to grow
by at least 15%. These assumptions are based on the strong February 2010 order
book of approximately EUR 28 m (2009: EUR 24 m), expected new contracts and
contract extensions as well as the achievement of certain milestones.
With the restructuring measures taken in 2009, Evotec has significantly reduced
its cost base going forward. The impact of Evotec's SG&A savings will be fully
reflected in the Company's financial results for the years 2010 and beyond. In
addition, Evotec expects research & development (R&D) expenses to decrease
considerably from 2009 levels. The Company will focus on key programmes and
targets to invest approximately EUR 10 m in R&D in 2010. As a result, Evotec's
Group operating result before impair-ment is expected to improve significantly
over 2009.
The Evotec Group started the year with EUR 71 m of cash, investments and auction
rate securities. In 2010, top-line growth and the adjusted cost base are
expected to significantly reduce the cash requirements compared to the 2009
fiscal year. Consequently, at constant year-end 2009 curren-cies, the Company
expects to end 2010 with a liquidity of more than EUR 64 m.
Webcast / Conference Call
Evotec is going to broadcast today's press & analyst conference in
Frankfurt/Main starting at 10.00 am CET (09.00 am GMT/05.00 am EDT) live on the
internet. The Management Board of Evotec will inform about the FY 2009 results
as well as the status of its discovery alliances and the Company's development
projects. More-over, they will provide an update on the "Evotec 2012 - Action
Plan to Focus and Grow" and the business outlook for 2010. The conference will
be held in English.
To join the audio webcast and to access the presentation slides you will find a
link on our home page www.evotec.com
event.
For those who prefer to listen to the presentation via phone, please dial:
From Europe: +49.(0)69.2222 7111 (Germany)
+44.(0)20.7784 1036 (UK)
From the US: +1.718.354 1358
Access Code: 9745589
Presentation: www.equitystory.com
Access code: evotec0310
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 leader in the discovery and development of novel small molecule
drugs with operational sites in Europe and Asia. The Company has built
substantial drug discovery expertise and an industrialised platform that can
drive new innovative small molecule compounds into the clinic. In addition,
Evotec has built a deep internal knowledge base in the treatment of diseases
related to neuroscience, pain, and inflammation. Leveraging these skills and
expertise the Company intends to develop best-in-class differentiated
therapeutics and deliver superior science-driven discovery alliances with
pharmaceutical and biotechnology companies. Evotec has long-term discovery
alliances with partners including Boehringer Ingelheim, CHDI, Novartis, Ono
Pharmaceutical and Roche. Evotec has product candidates in clinical development
and a series of preclinical compounds and development partnerships, including
for example a strategic alliance with Roche for the EVT 100 compound family,
subtype selective NMDA receptor antagonists for use in treatment-resistant
depression. 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. Such forward-looking
state-ments include, but are not limited to, statements about our financial
outlook for 2010 and beyond; our expectation that our current cash, cash
equivalents, invest-ments, and operating revenues will be sufficient to fund our
planned activities be-yond 2012, and our belief that we are on course to
profitability and sustainability by 2012; our expectations regarding the growth
of the pharmaceutical outsourcing drug discovery market, the opportunities such
growth will provide us, and our ability to take advantage of such market
developments and become a leader in this in-dustry in the coming years; our
expectations regarding the impacts, and anticipated timing of such impacts, of
the "Evotec 2012 - Action Plan to Focus and Grow"; our expectation that our
reentry into the German technology TecDAX in 2009 will in-crease liquidity for
our shareholders and that our voluntary delisting from NASDAQ and anticipated
de-registration with the SEC will streamline our activities and focus the
liquidity of Evotec's stock on one trading platform; our expectations regarding
the impact that the recent global financial crisis will have on our company; our
ex-pectations and assumptions concerning regulatory, clinical, and business
strate-gies, the progress of our clinical development programmes and timing of
the results of our clinical trials, strategic collaborations, and management's
plans, objectives and strategies. These statements are neither promises nor
guarantees, but are subject to a variety of risks and uncertainties, many of
which are beyond our con-trol, and which could cause actual results to differ
materially from those contem-plated in these forward-looking statements. In
particular, the risks and uncertainties include, among other things: risks that
we may be unable to achieve the antici-pated benefits of our revised business
focus, restructuring, and cost containment measures or recognise the results of
such measures within the expected time-frames; risks that we will not achieve
the anticipated benefits of our collaborations, partnerships and acquisitions in
the timeframes expected, or at all; the risk that we will not achieve the
anticipated benefits of our voluntarily delisting from NASDAQ and anticipated
de-registration from the SEC; risks that product candidates may fail in the
clinic or may not be successfully marketed or manufactured; risks relating to
our ability to advance the development of product candidates currently in the
pipe-line or in clinical trials; our inability to further identify, develop and
achieve com-mercial success for new products and technologies; the risk that
competing prod-ucts may be more successful; our inability to interest potential
partners in our tech-nologies and products; our inability to achieve commercial
success for our products and technologies; our inability to protect our
intellectual property and the cost of enforcing or defending our intellectual
property rights; our failure to comply with regulations relating to our products
and product candidates, including FDA re-quirements; the risk that the FDA may
interpret the results of our studies differently than we have; the risk that
clinical trials may not result in marketable products; the risk that we may be
unable to successfully secure regulatory approval of and mar-ket our drug
candidates; risks of new, changing and competitive technologies and regulations
in the U.S. and internationally; general worldwide economic conditions and
related uncertainties; future legislative, regulatory, or tax changes as well as
other economic, business and/or competitive factors; and the effect of exchange
rate fluctuations on our international operations. The list of risks above is
not ex-haustive. Our Annual Report on Form 20-F most recently filed with the
Securities and Exchange Commission, and other filings and items furnished with
the Securi-ties and Exchange Commission, contain additional factors that could
impact our businesses and financial performance. 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 cir-cumstances on which any such statement is based.
Fiscal Year 2009 Results
Key Figures of Consolidated Income Statements
Evotec AG and Subsidiaries
Euro in thousands except share data and per share data
+--------------------------------------------+----------------------+------+
| | January to December |Change|
| +-----------+----------+ |
| | 2009 | 2008 | in % |
+--------------------------------------------+-----------+----------+------+
| | | | |
+--------------------------------------------+-----------+----------+------+
|Revenues | 42,683| 39,613| 8|
+--------------------------------------------+-----------+----------+------+
|Gross margin in % | 43.2| 44.5| |
+--------------------------------------------+-----------+----------+------+
| | | | |
+--------------------------------------------+-----------+----------+------+
|Research and development expenses | 20,947| 42,537| (51)|
+--------------------------------------------+-----------+----------+------+
|Selling, general and administrative expenses| 16,695| 19,950| (16)|
+--------------------------------------------+-----------+----------+------+
|Amortisation and impairment | 18,293| 28,136| (35)|
+--------------------------------------------+-----------+----------+------+
|Restructuring expenses | 4,849| 132| -|
+--------------------------------------------+-----------+----------+------+
|Other operating income | 4,044| 2,280| 77|
+--------------------------------------------+-----------+----------+------+
|Other operating expenses | 3,980| 2,371| 68|
+--------------------------------------------+-----------+----------+------+
| | | | |
+--------------------------------------------+-----------+----------+------+
|Operating result | (42,299)| (73,210)| 42|
+--------------------------------------------+-----------+----------+------+
|Operating result* | (19,612)| (45,495)| 57|
+--------------------------------------------+-----------+----------+------+
| | | | |
+--------------------------------------------+-----------+----------+------+
|Net result | (45,523)| (78,287)| 42|
+--------------------------------------------+-----------+----------+------+
| | | | |
+--------------------------------------------+-----------+----------+------+
|Weighted average shares outstanding |106,845,831|95,198,525| |
+--------------------------------------------+-----------+----------+------+
|Net loss per share (basic and diluted) | (0.43)| (0.82)| 48|
+--------------------------------------------+-----------+----------+------+
* Before impairment and restructuring expenses.
Key Figures of Consolidated Statement of Financial Positions
Evotec AG and Subsidiaries
Euro in thousands
+-----------------------------------------------+-------+----------+-----------+
| |31 Dec | 31 Dec |Change in %|
| | | | |
| | 2009 | 2008 | |
+-----------------------------------------------+-------+----------+-----------+
| | | | |
+-----------------------------------------------+-------+----------+-----------+
|Cash and investments* | 70,594| 92,401| (24)|
+-----------------------------------------------+-------+----------+-----------+
|Working capital |(6,530)|(13,707)**| 52|
+-----------------------------------------------+-------+----------+-----------+
|Current and non-current portion of loans and| | | |
|finance lease obligations | | | |
| | 13,205| 11,328| 17|
+-----------------------------------------------+-------+----------+-----------+
|Stockholders' equity |111,487| 149,859| (26)|
+-----------------------------------------------+-------+----------+-----------+
| | | | |
+-----------------------------------------------+-------+----------+-----------+
|Total assets |146,599| 182,900| (20)|
+-----------------------------------------------+-------+----------+-----------+
* Including auction rate securities.
** Including acquired Renovis assets.
[HUG#1397459]
--- End of Message ---
Evotec AG
Schnackenburgallee 114 Hamburg Germany
WKN: 566480;ISIN: DE0005664809 ;Index:CDAX,TECH All Share,Prime All Share,HDAX,MIDCAP;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;
PDF of Press Release: http://hugin.info/131215/R/1397459/353321.pdf
Unternehmensinformation / Kurzprofil:
Datum: 25.03.2010 - 07:31 Uhr
Sprache: Deutsch
News-ID 18026
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contact information:
Town:
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Kategorie:
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