Strong Milestone Income Leads to Profitable 1st Half for Evotec
(Thomson Reuters ONE) -
Evotec AG / Strong Milestone Income Leads to Profitable 1st Half for Evotec processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
DRUG DISCOVERY BUSINESS REPORTS STRONG REVENUE GROWTH (+33%) AND A POSITIVE
OPERATING RESULT OF ? 0.3 M; REVENUE GUIDANCE RAISED FOR THE FULL YEAR 2010
Hamburg, Germany - 12 August 2010: Evotec AG (Frankfurt Stock Exchange: EVT,
TecDAX) today reported financial results and corporate updates for the first
half of 2010.
Recent Highlights:
¾ Strong operational performance
- Discovery alliances growing significantly: supported by strong milestone
income and growth in core business, revenues were up 33% and the operating
result was positive in H1 2010 (? 0.3 m)
- Liquidity improved over the end of Q1 2010 to ? 67.9 m
¾ Strong progress and significant milestone achievements in discovery
alliances
- New multi-year strategic alliance with Genentech started in May
- Significant milestone achievements in a number of disease areas in
multi-target collaboration with Boehringer Ingelheim; Phase I initiation in
Neuropathic Pain
- Very good progress in many alliances (e.g. Vifor, Ono); many new projects
started
- Full capacity utilisation in high quality partnerships and proprietary
innovation programmes
¾ Proprietary pipeline projects progressing
- Start of Phase II with EVT 101 in treatment-resistant depression
- Good progress with early discovery programmes (e.g. H3)
¾ Expansion into new disease areas through acquisition of DeveloGen (after
period-end)
- Adds key metabolic disease know-how and complementary drug discovery expertise
in regenerative medicine
- Adds two high-value alliances with Boehringer Ingelheim and Andromeda (Teva)
¾ Enlarged management team to accelerate growth
- Colin Bond appointed new CFO effective 12 August
- Cord Dohrmann appointed new CSO effective 1 September
- Klaus Maleck to assume new board role in Corporate Development
¾ Revenue guidance for 2010 raised; liquidity guidance confirmed despite
acquisition
- More than 20% revenue growth expected, leading to revenues of ? 52 to 54 m
(before ? 48 to 50 m)
- Liquidity guidance of >? 64 m at year-end confirmed despite ? 2 m cash to be
used in the DeveloGen acquisition
- Strong order book (end of June 2010: ? 40 m; +21% over 2009); indicates
continuing growth into 2011
1. Operational performance
Discovery alliances growing significantly
For the first half of 2010, revenues grew significantly by 33% to ? 25.0 m
(2009: ? 18.7 m), driven by multiple milestone achievements and strong growth in
Evotec's drug discovery alliances. The Company operates on a strong gross margin
of 45.1% (2009: 37.6%). R&D expenses declined by 82% to ? 2.9 m (2009: ? 16.3
m), and SG&A costs by 15% to ? 7.7 m (2009: ? 9.0 m). On this basis, supported
by the high margin milestone income, Evotec's operating result for the first
half of 2010 was positive at ? 0.3 m (2009: ? 29.1 m loss).
Liquidity including cash, cash equivalents and investments as well as on March
2010, auction rate securities at the end of June 2010 increased over end of
March 2010 to ? 67.9 m; this strongest half year in the Company's history
represents a solid foundation to develop Evotec to sustainable profitability
latest in 2012.
2. Discovery alliances update
Strong progress and significant milestone achievements in discovery alliances
Due to its scale, the seamless integration of drug discovery technologies and
disease biology know-how, as well as its strong reputation in the industry,
Evotec is ideally positioned as the partner of choice for integrated drug
discovery alliances with the pharmaceutical and biotech industry. The Company
recorded strong revenue growth in Q2 2010, achieved significant milestones
within its multi-target collaboration with Boehringer Ingelheim, and signed a
number of important new contracts and extensions.
New multi-year strategic alliance with Genentech started
In May 2010, Evotec signed a significant, multi-year, multi-target drug
discovery alliance with Genentech, a wholly owned subsidiary of Roche. Within
this alliance, Evotec will use its full drug discovery capabilities and
expertise to prosecute Genentech targets.
Significant milestone achievements in a number of disease areas in multi-target
collaboration with Boehringer Ingelheim
During the second quarter of 2010, strong progress was made in Evotec's
discovery collaboration with Boehringer Ingelheim. The first compound in this
strategic alliance has advanced into clinical trials. With the initiation of the
Phase I clinical studies, Evotec earned a milestone payment of ? 2.0 m. The
compound, which was discovered and optimised within the alliance, is being
developed as a novel treatment for neuropathic pain. Evotec also received a
first milestone payment of ? 2.5 m within its recently started oncology
programmes for the progression of a compound into pre-clinical studies. In July
(after period-end) a similar milestone in the amount of ? 2.5 m was achieved for
the progression of another candidate into pre-clinical studies. In total, Evotec
has now achieved 10 milestones within this collaboration that was initiated in
2004.
Very good progress in many alliances (e.g. Vifor, Ono); many new projects
started
During the second quarter of 2010, collaborations with Epitherapeutics and
Spermatech were extended and new screening projects were initiated with five
partners. June saw the completion of the hit-to-lead phase of the collaboration
with Vifor Pharma for the discovery of compounds to treat anaemia. A milestone
was achieved for completing this stage and the programme now moves into lead
optimisation. The ion channel project initiated within the Ono collaboration in
October 2009 also moved into hit-to-lead studies.
3. Status of clinical AND pRECLINICAL programmes
Proprietary pipeline projects progressing
Evotec is focusing its proprietary programmes on carefully selected core assets,
which the Company is progressing towards clinical development. To reduce
Evotec's risk profile and limit its R&D expenses the Company is seeking
strategic product development alliances to further advance these developments.
In the second quarter of 2010, Evotec started an important proof-of-concept
study in its collaboration with Roche, continued evaluating clinical indications
for the further development of EVT 401, nominated the final development
candidate, EVT 501, in its H3 receptor antagonist programme and received BMBF
funding to further progress this project.
Start of Phase II with EVT 101 in treatment-resistant depression
The EVT 100 programme is partnered with Roche. The proof-of-concept Phase II
study in treatment-resistant depression with the lead compound EVT 101 started
to recruit patients on 30 June 2010. The study, which is being conducted in the
United States, has the main objective of studying the safety and tolerability of
EVT 101 while also exploring the efficacy of this intervention. Approximately
100 patients suffering from treatment-resistant depression will participate.
Treatment-resistance of patients will be confirmed in a 6-week prospective
antidepressant treatment phase preceding the actual 4-week double-blind
treatment.
If Roche exercises its buy-back option after completion of this Phase II trial,
Evotec would receive an immediate $65 m lump-sum payment in exchange for the
assignment of all rights and would be eligible for further development, sales
performance, and scalable double-digit commercial payments.
Good progress with early discovery programmes (e.g. H3)
In Evotec's H3 receptor antagonist programme, lead optimisation studies have
resulted in the nomination of a development candidate named EVT 501. API (Active
Pharmaceutical Ingredient) production will commence imminently for use in
regulatory (GLP) toxicology and safety pharmacology studies. H3 receptor
antagonists have potential in a number of CNS indications, including excessive
fatigue associated with conditions such as multiple sclerosis as well as
cognition impairment. The initiation of a Phase I programme is planned within
the next 12 months.
4. expansion into new disease areas through acquisition of Develogen (after
Period-end)
On 14 July, Evotec signed a definitive agreement to acquire DeveloGen, a
biopharmaceutical company engaged in the discovery of novel therapeutic
approaches for the treatment of metabolic and endocrine disorders. The
transaction adds two complementary alliances - one with Boehringer Ingelheim and
one with Andromeda (Teva) - to Evotec's portfolio of core assets. In addition,
it augments and complements Evotec's high-end drug discovery platform and
capability with DeveloGen's target discovery, validation and in vivo/in vitro
pharmacology expertise and adds core disease biology know-how in metabolic
diseases and endocrine disorders. These skills further enhance Evotec's ability
to deliver high quality, innovative solutions to its partners on a global scale.
5. MANAGEMENT TEAM
Enlarged management team to accelerate growth
Evotec appointed Colin Bond as its new Chief Financial Officer and member of the
Management Board effective 12 August 2010 and Cord Dohrmann, Ph.D., as Chief
Scientific Officer and member of the Management Board starting 1 September 2010
(for both CVs see full half year 2010 report). Following successful
restructuring of the Company, Dr Klaus Maleck, Evotec's current Chief Financial
Officer, will take responsibility for the Company's Corporate Development
activities, including licensing of proprietary discovery and development
projects and M&A.
6. Guidance
Revenue guidance for 2010 raised; liquidity guidance confirmed despite
acquisition
Based on a strong H1 2010 operational performance, Evotec raised its revenue
guidance for the fiscal year 2010 published on 25 March 2010: Total Group
revenues are now expected to grow by more than 20%, leading to revenues of ? 52
to 54 m (before: ? 48 to 50 m). All other financial targets remain unchanged.
Despite ? 2 m cash to be used in the acquisition of DeveloGen, mainly for
DeveloGen working capital needs, Evotec also confirms its 2010 year-end
liquidity target of >? 64 m at constant year-end 2009 currencies.
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, 12 August 2010
Time:
09.30 a.m. CEST
08.30 a.m. BST
03.30 a.m. US time (East Coast)
From Europe:
+49 (0)69.2222 3105 (Germany)
+44 (0)20.7784 1036 (UK)
From the US: +1 718.354.1152
Access Code: 7555444
A simultaneous slide presentation for participants dialing in via phone is
available at www.equitystory.com, password: evotec0810.
Webcast details
To join the audio webcast and to access the presentation slides you will find a
link on our home pagewww.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 (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
7555444#. 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
Second 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
+---------------+-----------------------+------+------------------------+------+
| | Six months ended June |Change|Three months ended June |Change|
| | 30, | in % | 30, | in % |
+---------------+-----------+-----------+------+-----------+------------+------+
| | 2010 | 2009 | | 2010 | 2009 | |
+---------------+-----------+-----------+------+-----------+------------+------+
| | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Revenue | 24,968| 18,739| 33.2| 15,127| 10,501| 44.1|
+---------------+-----------+-----------+------+-----------+------------+------+
|Gross margin in| 45.1| 37.6| | 49.7| 38.8| |
|% | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
| | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Research and | | | | | | |
|development | 2,927| 16,293|(82.0)| 1,193| 5,974|(80.0)|
|expenses | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Selling, | | | | | | |
|general and | 7,702| 9,013|(14.6)| 4,352| 4,220| 3.1|
|administrative | | | | | | |
|expenses | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Amortisation | 260| 6,811|(96.2)| 131| 103| 27.2|
|and impairment | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Restructuring | -| 4,136| -| -| 2,692| -|
|expenses | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Other operating| 1,855| 728| 154.8| 945| 508| 86.0|
|income | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Other operating| 1,878| 647| 190.3| 978| 463| 111.2|
|expenses | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
| | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Operating | 342| (29,117)| 101.2| 1,816| (8,868)| 120.5|
|income (loss) | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Operating | 342| (18,351)| 101.9| 1,816| (6,176)| 129.4|
|income (loss)* | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
| | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Net income | 95| (30,416)| 100.3| 1,342| (8,569)| 115.7|
|(loss) | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
| | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Weighted | | | | | | |
|average shares |107,356,508|106,694,336| |107,372,695| 106,822,912| |
|outstanding | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
|Net income | | | | | | |
|(loss) per | 0.00| (0.29)| | 0.01| (0.08)| |
|share (basic | | | | | | |
|and diluted) | | | | | | |
+---------------+-----------+-----------+------+-----------+------------+------+
*Before impairment and restructuring expenses.
Key Figures of Consolidated Interim Statement of Financial Position
Evotec AG and Subsidiaries
Euro in thousands
+--------------------------------------------+-------------+------------+------+
| |June 30, 2010|Dec 31, 2009|Change|
| | | | in % |
+--------------------------------------------+-------------+------------+------+
| | | | |
+--------------------------------------------+-------------+------------+------+
|Liquidity* | 64,826| 70,594| (8.2)|
+--------------------------------------------+-------------+------------+------+
|Working capital | (343)| (6,530)|(94.8)|
+--------------------------------------------+-------------+------------+------+
|Current and non-current portion of loans and| | | |
|finance lease obligations | 12,759| 13,205| (3.4)|
+--------------------------------------------+-------------+------------+------+
|Stockholders' equity | 119,280| 111,487| 7.0|
+--------------------------------------------+-------------+------------+------+
| | | | |
+--------------------------------------------+-------------+------------+------+
|Total assets | 151,387| 146,599| 3.3|
+--------------------------------------------+-------------+------------+------+
*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 revised
revenue guidance for 2010 and expected revenue growth, our ability to deliver on
our liquidity guidance, our belief that we are on course to sustainable
profitability latest in 2012, our expectations and assumptions concerning
regulatory, clinical and business strategies, the progress of our clinical
development programmes 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#1437328]
--- 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 PressRelease:
http://hugin.info/131215/R/1437328/382102.pdf
Pdf of quarterly report:
http://hugin.info/131215/R/1437328/382103.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
All reproduction for further distribution is prohibited.
Source: Evotec AG via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 12.08.2010 - 07:29 Uhr
Sprache: Deutsch
News-ID 39468
Anzahl Zeichen: 0
contact information:
Town:
Hamburg
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 202 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Strong Milestone Income Leads to Profitable 1st Half for Evotec"
steht unter der journalistisch-redaktionellen Verantwortung von
Evotec AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
