Evotec's Drug Discovery Business Set for Strong Growth
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Evotec AG / Evotec's Drug Discovery Business Set for Strong Growth processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Excellent start into 2010: revenues +19% and strong decrease of operating loss
by 93%
Hamburg, Germany - 12 May 2010: Evotec AG (Frankfurt Stock Exchange: EVT,
TecDAX) today reported financial results and corporate updates for the first
quarter of 2010.
Recent Highlights:
¾ Sustainability of business clearly visible
¾ Discovery alliances growing significantly, revenues +19%
¾ Strong decrease of operating loss by 93% to ? 1.5 m
¾ Cash burn markedly reduced: liquidity at ? 67 m
¾ Increased revenues from long-term collaborations
¾ New multi-year strategic alliance with Genentech (after period-end)
¾ Collaboration with CHDI to fight Huntington's Disease extended for another
three years
¾ Good progress with proprietary pipeline projects; increased third-party
funding
¾ Positive FDA feedback to initiate Phase II with EVT 101; study to start in
Q2 2010
¾ Successful completion of first-in-man study with EVT 103
¾ BMBF grant for H3 receptor antagonist programme (after period-end)
¾ Financial guidance for 2010 confirmed
¾ At least 15% revenue growth and > ? 64m liquidity at year-end
1. Operational performance
Sustainability of business clearly visible: revenues +19%; operating loss -93%
at ? 1.5 m
The effects of Evotec's 'Action Plan 2012' are now clearly reflected in the
financial results for the first quarter 2010. Revenues from the Company's
discovery alliances grew significantly. Although Q1 revenues in 2009 and 2010
did not include any milestone payments from collaborations, total Group revenues
increased by 19% to ? 9.8 m (2009: ? 8.2 m). Gross margin remained strong at
37.9% (2009: 36.2%). R&D expenses decreased by 83% to ? 1.7 m (2009: ? 10.3 m),
and SG&A expenses by 30% to ? 3.4 m (2009: ? 4.8 m). The strong decrease in R&D
was supported by the fact that the costs for the development of the EVT 100
compound family are now fully borne by Roche, while they were still included in
Evotec's R&D expenses for the majority of the first quarter 2009.
Due to this strong top-line performance and the significant reduction in
operating expenses as well as exceptional items in Q1 2009, Evotec's operating
loss for the first quarter decreased by 93% to ? 1.5 m (2009: ? 20.2 m). Net
loss decreased by 94% to ? 1.2 m (2009: ? 21.8 m). On this basis, liquidity
including cash and cash equivalents, investments and auction rate securities at
the end of March remained very strong at ? 66.8 m (31 Dec 2009: ? 70.6 m). Going
forward, milestone achievements are expected to further enhance Evotec's
financial performance; a strong basis to develop the Company to profitability
latest in 2012.
2. Discovery alliances update
Increased revenues from long-term collaborations
Due to its scale, integration of drug discovery technologies and disease
know-how, as well as its strong reputation in the industry, Evotec is ideally
positioned to take advantage of the increase in strategic drug discovery
outsourcing. As a partner of choice for integrated alliances with pharmaceutical
companies, Evotec further increased its share in revenues from long-term
collaborations in the first quarter.
New multi-year strategic alliance with Genentech (after period-end)
On 10 May 2010, Evotec announced a new multi-year integrated drug discovery
alliance with Genentech. Jointly, both companies aim to identify novel
therapeutics against one or several targets.
Collaboration with CHDI to fight Huntington's Disease extended for another three
years
In January 2010, Evotec announced the extension of its collaboration with CHDI
Foundation, Inc. (CHDI) through the end of 2012. The collaboration represents
one of the largest drug discovery alliances within Evotec and will provide the
Company with up to a total of US$ 37.5 m in research funding over three years.
Evotec has been providing research and innovation support to CHDI since 2006.
In the first quarter 2010, Evotec also signed a significant collaboration with
Vifor Pharma to jointly identify a pre-clinical candidate for the treatment of
anaemia and announced collaborations or extensions with Cubist Pharmaceuticals
and Active Biotech.
3. Status of clinical programmes and partnering of assets
Proprietary R&D increasingly funded by external partners
Evotec is focusing its proprietary programmes on fewer core assets, aggressively
seeking strategic alliances to progress their development and to capture their
commercial potential. The EVT 100 programme is partnered with Roche for
development in treatment-resistant depression. The costs for the EVT 101 and EVT
103 studies are now fully borne by Roche, significantly reducing Evotec's R&D
expenses and risk profile.
Good progress with EVT 101 and EVT 103 in Roche alliance
Early in 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 single
and multiple oral dose administration, with excellent bioavailability and only a
minimal effect of food on the kinetic profile.
For EVT 101, the lead compound, Evotec received approval from the FDA to
initiate the Phase II Proof-of-Concept study in treatment resistant depression.
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 trial, Evotec
will receive a $65 m payment in exchange for the assignment of all rights.
New BMBF grant for H3 receptor antagonist programme (after period-end)
On 27 April 2010 Evotec announced it will receive up to ? 1.5 m funding from the
German Federal Ministry of Education and Research (BMBF) to advance its H3
receptor antagonist programme through Phase I clinical studies. H3 receptor
antagonists have potential in a number of CNS indications, including excessive
fatigue associated with conditions such as multiple sclerosis.
4. Guidance
Financial guidance for 2010 confirmed
The Company confirms all financial targets for the fiscal year 2010 published on
25 March 2010: Total Group revenues before out-licensing income are expected to
grow by at least 15%. These assumptions are based on the strong order book of
approximately
? 30 m at the end of March 2010 (2009: ? 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. SG&A expenses will decrease due to cost reductions in all parts
of the Group. In addition, Evotec expects R&D expenses to decrease considerably
from 2009 levels. The Company will focus on key programmes and targets to invest
approximately ? 10 m in R&D in 2010. As a result, Evotec's Group operating
result before impairment is expected to improve significantly over 2009.
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 currencies, the Company expects to end 2010 with a
liquidity of more than ? 64 m.
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: Wednesday, 12 May 2010
Time: 09.30 a.m. CEST
08.30 a.m. BST
03.30 a.m. US time (East Coast)
From Europe: +49.(0)69.9897 2631 (Germany)
+44.(0)20.7138 0814 (UK)
From the US: +1.718.354 1359
Access Code: 8395457
A simultaneous slide presentation for participants dialing in via phone is
available at www.equitystory.com
evotec0510.
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
event.
A replay of the conference call will be available for 24 hours and can be
accessed in Europe by dialing +49.(0)69.2222 2236 (Germany) or +44.(0)20.7111
1244 (UK) and in the US by dialing +1.347.366 9565. The access code is
8395457#. The on-demand version of the webcast will be available on our website:
www.evotec.com/Investors/Finance
Contact: Dr Werner Lanthaler, Chief Executive Officer,
Evotec AG, Tel.: +49.(0)40.56081-242, werner.lanthaler(at)evotec.com
First Quarter Report 2010
Key Figures of Condensed Consolidated Interim Income Statements
Evotec AG and Subsidiaries
Euro in thousands except share data and per share data
+--------------------------------------------+--------------------------+------+
| | Three months ended March |Change|
| | 31, | in % |
+--------------------------------------------+-----------+--------------+------+
| | 2010 | 2009 | |
+--------------------------------------------+-----------+--------------+------+
| | | | |
+--------------------------------------------+-----------+--------------+------+
|Revenue | 9,841| 8,238| 19|
+--------------------------------------------+-----------+--------------+------+
|Gross margin in % | 37.9| 36.2| |
+--------------------------------------------+-----------+--------------+------+
| | | | |
+--------------------------------------------+-----------+--------------+------+
|Research and development expenses | 1,734| 10,319| (83)|
+--------------------------------------------+-----------+--------------+------+
|Selling, general and administrative expenses| 3,350| 4,793| (30)|
+--------------------------------------------+-----------+--------------+------+
|Amortization and impairment | | | |
| | 129| 6,708| (98)|
+--------------------------------------------+-----------+--------------+------+
|Restructuring expenses | -| 1,444| -|
+--------------------------------------------+-----------+--------------+------+
|Other operating income | 910| 220| 314|
+--------------------------------------------+-----------+--------------+------+
|Other operating expenses | 900| 184| 389|
+--------------------------------------------+-----------+--------------+------+
| | | | |
+--------------------------------------------+-----------+--------------+------+
|Operating loss | 1,474| 20,249| (93)|
+--------------------------------------------+-----------+--------------+------+
|Operating loss* | 1,474| 12,175| (88)|
+--------------------------------------------+-----------+--------------+------+
| | | | |
+--------------------------------------------+-----------+--------------+------+
|Net loss | 1,247| 21,847| (94)|
+--------------------------------------------+-----------+--------------+------+
| | | | |
+--------------------------------------------+-----------+--------------+------+
|Weighted average shares outstanding |107,335,773| 106,564,331| |
+--------------------------------------------+-----------+--------------+------+
|Net loss per share (basic and diluted) | 0.01| 0.21| (95)|
+--------------------------------------------+-----------+--------------+------+
*Before impairment and restructuring expenses.
Key Figures of Consolidated Interim Statement of Financial Position
Evotec AG and Subsidiaries
Euro in thousands
+---------------------------------------------+------------+------------+------+
| |Mar 31, 2010|Dec 31, 2009|Change|
| | | | in % |
+---------------------------------------------+------------+------------+------+
| | | | |
+---------------------------------------------+------------+------------+------+
|Liquidity* | 66,772| 70,594| (5)|
+---------------------------------------------+------------+------------+------+
|Working capital | (2,401)| (6,530)| 63|
+---------------------------------------------+------------+------------+------+
|Current and non-current portion of loans and | | | |
|finance lease obligations | 13,000| 13,205| (2)|
+---------------------------------------------+------------+------------+------+
|Stockholders' equity | 113,211| 111,487| 2|
+---------------------------------------------+------------+------------+------+
| | | | |
+---------------------------------------------+------------+------------+------+
|Total assets | 144,532| 146,599| (1)|
+---------------------------------------------+------------+------------+------+
*Including auction rate securities.
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
statements include, but are not limited to, statements about our 2010 financial
outlook and our expected financial results in future quarters, our ability to
deliver on our liquidity guidance, our belief that we are on course to
profitability in 2012, our expectations and assumptions concerning regulatory,
clinical and business strategies, the progress of our clinical development
programs and timing of the commencement and 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 control, and
which could cause actual results to differ materially from those contemplated in
these forward-looking statements. In particular, the risks and uncertainties
include, among other things; risks that product candidates may fail in the
clinic or may not be successfully marketed or manufactured; the risk that we
will not achieve the anticipated benefits of our collaborations, partnerships
and acquisitions in the timeframes expected, or at all; risks relating to our
ability to advance the development of product candidates currently in the
pipeline or in clinical trials; our inability to further identify, develop and
achieve commercial success for new products and technologies; the risk that
competing products may be more successful; our inability to interest potential
partners in our technologies 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 requirements; 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 market our drug
candidates; and risks of new, changing and competitive technologies and
regulations in the U.S. and internationally.
The list of risks above is not exhaustive. Our most recent Annual Report on Form
20-F, filed with the Securities and Exchange Commission, and other documents
filed with, or furnished to the Securities 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 circumstances on which any
such statement is based.
[HUG#1414933]
--- End of Message ---
Evotec AG
Schnackenburgallee 114 Hamburg Germany
WKN: 566480;ISIN: DE0005664809;
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/1414933/366316.pdf
Unternehmensinformation / Kurzprofil:
Datum: 12.05.2010 - 07:27 Uhr
Sprache: Deutsch
News-ID 20729
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contact information:
Town:
Hamburg
Kategorie:
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