DGAP-News: Evotec AG: Forward step by step with Action Plan 2016 - Continued revenue growth - Significant pipeline progress
(firmenpresse) - DGAP-News: Evotec AG / Key word(s): Final Results
Evotec AG: Forward step by step with Action Plan 2016 - Continued
revenue growth - Significant pipeline progress
26.03.2013 / 07:29
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Hamburg, Germany - 26 March 2013
Evotec AG (Prime Standard Frankfurt Stock Exchange: 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 EUR 87.3 m
- Operating result adjusted EUR 1.4 m; net income EUR 2.5 m
- Operating cash flow +18% to EUR 12.0 m
- Strong and stable liquidity position of EUR 64.2 m
- Expected revenues of EUR 90 m to EUR 100 m in 2013
Strong progress in all business units (EVT Execute /Integrate/Innovate)
achieved
- Multiple new alliances and contract extensions (e.g. Bayer, CHDI and NIH)
- Acceleration of EVT Innovate strategy through alliances with Harvard and
Yale
- 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 second
pivotal 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
profitability
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
EUR 87.3 m (2011: EUR 80.1 m) and a net income of EUR 2.5 m (2011: EUR 6.7
m). 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 EUR 12.3 m
(2011: EUR 10.5 m).
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 EUR (3.2) m (2011: EUR 5.2
m), which primarily was due to a lower gross profit and an impairment of
intangible assets in the amount of EUR 3.5 m (2011: EUR 0.6 m 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 EUR 1.4
m (2011: EUR 5.8 m). Net income amounted to EUR 2.5 m (2011: EUR 6.7 m).
The improvement in the net income primarily resulted from deferred tax
income amounting to EUR 8.3 m (2011: EUR 2.5 m).
R&D expenditure amounted to EUR 8.3 m (2011: EUR 8.4 m). 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 EUR
8.2 m (2011: EUR 8.1 m) as well as in intangible assets and earn-out
payments, the Company's liquidity position increased to EUR 64.2 m (2011:
EUR 62.4 m), this is composed of cash and cash equivalents (EUR 39.1 m) and
of investments (EUR 25.1 m). Therefore Evotec is very well-financed.
2. Evotec Action Plan 2016 - Step by step forward for higher Innovation
Efficiency
Update on discovery alliances, development partnerships and status of pre-
clinical programmes
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
royalties.
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 $ 41 m 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 EUR 7.7 m
(approximately $ 10 m).
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 EUR 60 m (approximately $ 75
m).
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 milestone achievements
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 EUR 12 m as an upfront payment. In total,
Evotec could receive pre-clinical, clinical and sales milestones of up to
EUR 580 m 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 EUR 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 $ 6 m to be paid upon confirmation of certain pre-clinical
properties of the candidates. Evotec could receive up to $ 67 m 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 $ 100 m 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 of 2013/14.
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 $ 8 m. Upon achievement of certain pre-clinical,
clinical, regulatory and commercial goals, Evotec could receive milestone
payments of up to $ 300 m 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 EUR 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 partners.
3. Guidance 2013
In 2013, total Group revenues are expected to grow to a level between EUR
90 m to EUR 100 m. 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 EUR 10 m 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
EUR 60 m at the end of 2013, excluding any potential cash outflow for M&A
transactions and related payments.
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: +44207 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 TEUR except share data and per share data
January to December Change
in
%
2012 2011
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
expenses (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 assets - 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 considerations
Key figures of consolidated statement of financial position Evotec AG and
subsidiaries
In TEUR
31 Dec 31 Dec Change
2012 2011 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
lease obligations 17,402 15,566 12
Stockholders' equity 152,547 147,245 4
Total assets 225,427 218,213 3
Contact Evotec AG:
Dr Werner Lanthaler, Chief Executive Officer, Phone: +49.(0)40.56081-242,
werner.lanthaler(at)evotec.com
End of Corporate News
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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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205128 26.03.2013
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Datum: 26.03.2013 - 07:29 Uhr
Sprache: Deutsch
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