DGAP-News: Evotec Q1 2013: Driving Innovation Efficiency
(firmenpresse) - DGAP-News: Evotec AG / Key word(s): Quarter Results
Evotec Q1 2013: Driving Innovation Efficiency
14.05.2013 / 07:24
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Evotec Q1 2013: Driving Innovation Efficiency
- STRONG STRATEGIC POSITION SUPPORTS ACTION PLAN 2016 - INNOVATION
EFFICIENCY
- EVOTEC'S DRUG DISCOVERY PLATFORM GENERATES GROWTH
- NEW HORMONE IDENTIFIED AS PART OF THE CUREBETA INITIATIVE
- GUIDANCE 2013 CONFIRMED
Hamburg, Germany - 14 May 2013: Evotec AG (Frankfurt Stock Exchange: EVT,
TecDAX, ISIN: DE0005664809) today reported financial results and corporate
updates for the first quarter of 2013.
Revenues without milestones increased in the first quarter of 2013 by 5%
compared to the first quarter of 2012
- Q1 2013 revenues amounted to EUR 17.1 m (2012: EUR 20.1 m); up 5%
compared to Q1 2012 revenues of EUR 16.2 m on a like-for-like basis
- Operating loss at EUR 2.7 m due to absence of milestone revenues
- Strong liquidity position at EUR 60.4 m
- High and stable equity ratio at 67.3%
Good progress in EVT Execute business and EVT Integrate/EVT Innovate
alliances
- Extension of alliance with Genentech validates Evotec's technology
platform and broad expertise in drug discovery (after period-end)
- Important strategic expansion of EVT Execute compound management
capability (after-period end)
- Increase in revenues driven by integrated alliances
- New alliances with Yale University (December 2012) and Belfer Institute
(after period-end) accelerate innovation strategy
- New project to fuel future EVT Innovate collaborations: Co-development
agreement with Apeiron Biologics AG
- Significant clinical datapoints ahead in 2013 /2014
- New hormone identified to treat diabetes as part of Evotec's CureBeta
initiative (after period-end)
Start of integration of CCS Cell Culture Service GmbH - Strengthening
Evotec's screening capabilities
Financial guidance for 2013 confirmed
- Revenues are expected to grow to a level between EUR 90 -100 m
- Operating result before impairment and changes in contingent
consideration, if any, is expected to improve over 2012
- R&D expenditure is expected to be around EUR 10 m in 2013
- Strong liquidity position above EUR 60 m
1. Operational performance
Revenues without milestones increased in the first quarter of 2013 by 5%
compared to the first quarter of 2012
Reported Group revenues for the first three months of 2013 decreased by 15%
to EUR 17.1 m (2012: EUR 20.1 m). Revenues for the first three months of
the previous year included a milestone earned in Evotec's development
partnership with Andromeda/Teva with DiaPep277(R) (EUR 3.9 m). Excluding
milestones, Evotec's revenues for the first quarter 2013 would have
increased by 5% over the same period of the previous year. This growth was
driven by an increase in revenues within the Company's drug discovery
alliances and from new integrated collaborations such as the CureBeta
partnership with Janssen Pharmaceuticals ('Janssen') and the multi-target
alliance with Bayer entered into in the second half of 2012. As
anticipated, the absence of milestones resulted in an operating loss for
the first quarter of 2013 of EUR 2.7 m. As stated before, the operating
result of Evotec may vary significantly between quarters as a result of the
timing of performance-based milestone payments and partnering events.
Overall, the Company is on track to achieve increased full-year
profitability over 2012 (before impairment and changes in contingent
consideration, if any). Liquidity including cash, cash equivalents and
investments at the end of March remained strong at EUR 60.4 m.
2. EVOTEC ACTION PLAN 2016 - STEP BY STEP FORWARD FOR INCREASED INNOVATION
EFFICIENCY
Good progress in EVT Execute business and EVT Integrate/EVT Innovate
alliances
Action Plan 2016 - Innovation Efficiency is the strategic 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, milestone payments and royalties
success basis. EVT Innovate involves accelerating promising drug discovery
ideas and assets to partnerships with upfront payments, premium research
fees, milestone payments and royalties.
A. EVT Execute
Extension of alliance with Genentech validates Evotec's technology platform
and broad expertise in drug discovery (after period-end)
In April 2013, Evotec extended its drug discovery alliance with Genentech,
a member of the Roche Group, for three additional years.
The collaboration was initiated in May 2010.
Important strategic expansion of EVT Execute compound management capability
(after-period end)
Evotec (US), Inc. has signed a multi-year lease on a facility located in
Branford, Connecticut that is specifically designed to expand the offering
of its compound management services on the US East Coast. The facility is
expected to be fully operational in early Q3 2013 and will complement the
existing facility in South San Francisco which will continue to be fully
operational and serve existing clients.
B. EVT Integrate
Increase in revenues driven by integrated alliances
All integrated alliances achieved progress within their projects. Growth in
revenues for the first quarter of 2013 was mainly driven by Evotec's
integrated deals, e.g. the multi-target alliances with Bayer started in the
second half of 2012 and UCB.
C. EVT Innovate
New alliances with Yale University (December 2012) and Belfer Institute
(after period-end) accelerate innovation strategy
An open innovation alliance was formed with Yale University in December
2012, starting in the first quarter of 2013. Under the agreement, Evotec
and Yale will 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 and prepare these for partnering.
A collaboration to discover new oncology therapies targeting epigenetic
mechanisms was formed with the Belfer Institute for Applied Cancer Science
at Dana-Farber Cancer Institute (DFCI). The goal of the collaboration is to
validate emerging epigenetic targets for oncology indications and to
demonstrate the drugability of the selected target families. Evotec, DFCI
and DFCI's Belfer Institute will invest in enabling technologies,
experimental target validation and the generation of chemical matter by
leveraging existing expertise and platforms.
These new partnerships complement the already existing initiatives
'CureBeta' and 'CureNephron' with Harvard University.
New project to fuel future EVT Innovate collaborations
In January 2013, Evotec and Apeiron Biologics entered into a research
collaboration with the objective of developing immunomodulatory lead
compounds for the treatment of cancer. Apeiron Biologics will contribute in
vitro and in vivo pharmacology expertise to this collaboration while Evotec
will be responsible for medicinal chemistry as well as chemical proteomics.
The collaboration is based on the successful outcome of a phenotypic high
throughput screen previously commissioned by Apeiron Biologics to Evotec.
Significant clinical datapoints ahead in 2013 /2014
The first Phase III trial on DiaPep277(R) 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
which aimed to recruit 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
in 2015.
Evotec entered into a license agreement in December 2012 with Janssen for
its NR2B subtype selective NMDA-antagonist portfolio for development
against diseases in the field of depression. The Company expects that
Janssen will initiate Phase II clinical trials for the treatment of
depression during the course of 2013/14.
After period end, JingXin Pharma received approval from the Chinese Center
of Drug Evaluation (CDE) to commence clinical trials with EVT201. EVT201 is
a GABAA receptor partial positive allosteric modulator developed for the
treatment of insomnia. Evotec had previously concluded two Phase II
studies, providing safety and efficacy results. In October 2010, Evotec
entered into a license and collaboration agreement with JingXin for EVT201.
The agreement grants JingXin exclusive rights to develop and market the
drug candidate in China.
New hormone identified to treat diabetes as part of Evotec's CureBeta
initiative (after period-end)
Evotec AG announced the publication of a scientific article by Prof. Doug
Melton and his post doc Peng Yi in the journal 'Cell'. Doug Melton is a
University professor at Harvard University and a Howard Hughes Medical
Institute (HHMI) investigator. In addition he is the co-director of the
Harvard Stem Cell Institute and a key collaborator of CureBeta, a strategic
alliance between Harvard University, Evotec and Janssen in the field of
beta cell regeneration.
The 'Cell' paper published in April 2013, describes the discovery of the
new hormone betatrophin that controls beta cell proliferation. All
intellectual property associated with these findings were licensed to
Evotec in March 2011 and subsequently sublicensed to Janssen within the
CureBeta collaboration announced in July 2012.
3. ACQUISITION UPDATE
Start of CCS integration - Strengthening Evotec's screening capabilities
Signed in December 2012 and effective 01 January 2013, Evotec acquired CCS
Cell Culture Service GmbH ('CCS'), a Hamburg-based company which supports
the cell culture needs of biotech and pharmaceutical companies on a
worldwide basis. CCS' large-scale processes for cell production, freezing
and storage, including the entire team of specialised cell culture
scientists and technicians, are being fully integrated into Evotec's
Hamburg operations to realise cost synergies and efficiency improvements.
4. GUIDANCE
Financial guidance for 2013 confirmed
All financial targets published on 26 March 2013 in Evotec's Annual Report
2012 (page 78) remain unchanged. In 2013, Evotec expects revenues to grow
to a level between EUR 90 m and EUR 100 m. This assumption is based on the
current order book, expected new contracts and contract extensions and 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 expenses are expected to
be around EUR 10 m in 2013.
On this basis the Evotec Group operating result before impairment and
changes in contingent consideration, if any, for the year 2013 is expected
to improve over 2012.
At constant year-end 2012 currencies, the Company expects to maintain its
liquidity position above EUR 60 m at the end of 2013, excluding any
potential cash outflow for M&A or similar transactions.
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: Tuesday, 14 May 2013
Time: 09.30 am CET (08.30 am BST, 3.30 am EDT)
From Germany: +49 (0) 6103 485 3001
From UK: +44 207 153 2027
From USA: +1 480 629 9673
Access Code: 4615712
A simultaneous slide presentation for participants dialling in via phone is
available at www.equitystory.com, password: evotec1112.
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 dialling +49 69 58 99 90 568 (Germany) or +44 207 959
6720 (UK) and in the US by dialling +1 303 590 3030. The access code is
4615712#. The on-demand version of the webcast will be available on our
website:
http://www.evotec.com/article/en/Investors/Finance/Financial-Reports-2011-
2013/188/6/26.
First quarter 2013 results
Key figures of consolidated interim income statement
Evotec AG and subsidiaries
In TEUR except share data and per share data
January to March Change in
2013 2012 %
Revenues 17,064 20,110 (15)
Gross margin in % 26.1 32.5
Research and development expenses (2,328) (1,912) 22
Selling, general and administrative (3,925) (4,432) (11)
expenses
Amortisation of intangible assets (900) (526) 71
Other operating income 110 234 (53)
Other operating expenses (126) (1,183) (89)
Operating loss (2,716) (1,289) 111
Operating loss* (2,716) (974) 179
Net loss (2,851) (1,995) 43
Weighted average shares outstanding 117,760,9 116,987,5
45 97
Net income per share (basic and diluted) (0.02) (0.02) 0
* Excluding impairments and reversal of impairments and changes in
contingent considerations
Key figures of consolidated interim statement of financial position
Evotec AG and subsidiaries
In TEUR
31 March 31 Dec Change
2013 2012 in %
Cash, cash equivalents and investments 40,609 39,065 4
Working capital 1,826 3,287 (44)
Current and non-current loans and finance
lease obligations 17,377 17,402 -
Stockholders' equity 149,439 152,547 (2)
Total assets 221,961 225,427 (2)
Contact Evotec AG:
Gabriele Hansen, Head of Corporate Communications, Phone:
+49.(0)40.56081-255, gabriele.hansen(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.
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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