DGAP-News
Evotec FY 2014: Strong performance in EVT Execute and acceleration of EVT Innovate
DGAP-News: Evotec AG / Key word(s): Final Results
Evotec FY 2014: Strong performance in EVT Execute and acceleration of
EVT Innovate
24.03.2015 / 07:30
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Hamburg, Germany - 24 March 2015: Evotec AG (Prime Standard Frankfurt Stock
Exchange: EVT, TecDAX, ISIN: DE0005664809) today announced its financial
results for the fiscal year ended 31 December 2014.
Base revenue growth of 7% and positive adjusted EBITDA reflect strong
performance; continued strong cash position; strategic alliance with Sanofi
provides significant upside potential
- Group revenues amounted to EUR 89.5 m, an increase of 4% compared to
the previous year; base revenues increased by 7%; revenues from EVT
Execute amounted to EUR 93.3 m (Third-party revenues: EUR 74.8 m)
- Adjusted Group EBITDA positive at EUR 7.7 m and EUR 22.1 m for EVT
Execute
- Operating loss of EUR 6.4 m and net loss of EUR 7.0 m mainly due to
impairment of DiaPep277(R)
- Strong liquidity position of EUR 88.8 m; liquidity adjusted for M&A of
EUR 93.1 m
EVT Execute
Successful year for EVT Execute
- New alliances and extended collaborations in 2014 strengthen customer
and revenue base and give foundation for strong future growth
- Important milestone achievements within existing alliances
- Expansion of protein production capabilities in US
EVT Innovate
Broad long-term pipeline of over 70 partnered potential drug targets
- Good progress within clinical development projects (EVT302, EVT100
series, EVT201, EVT401)
- Cure X and Target X strategy significantly expanded
- Evotec regains rights in the EVT070 programme after termination by
Boehringer Ingelheim
- Strategic discovery and development collaboration with Second Genome
(US) (after period-end)
- DiaPep277(R) programme terminated by Hyperion Therapeutics; Evotec
enters settlement agreement with Andromeda/Hyperion Therapeutics (after
period-end)
Upgrading Evotec's drug discovery platform
- Acquisition of Bionamics GmbH to accelerate EVT Innovate
- Acquisition of Euprotec adds expertise in infectious diseases
Strategic collaboration with Sanofi
- Signing of definitive agreement of major multi-component strategic
alliance with Sanofi (after period-end)
Guidance 2015
- Group revenues excluding milestones, upfronts and licences expected to
increase by more than 20%
- Adjusted EBITDA positive
- R&D expenditure is expected to grow to EUR 15 m - EUR 20 m
- Liquidity is expected to be well in excess of EUR 100 m
- Capacity and capability building continued with up to EUR 10 m
1. Operational performance
Base revenue growth of 7% and positive adjusted EBITDA reflect strong
performance; continued strong cash position
Evotec Group revenues amounted to EUR 89.5 m, an increase of 4% compared to
the previous year (2013: EUR 85.9 m). This increase is primarily due to
continued growth in the EVT Execute base business.
Total milestone, upfront and licence revenues achieved in Evotec's
partnerships were EUR 16.1 m, a slight decrease in comparison with prior
year (EUR 17.1 m). The Group's base business (revenues excluding
milestones, upfronts and licences) for the year 2014 increased by 7% to EUR
73.4 m (2013: EUR 68.8 m).
The gross margin of the Group was 32.8% (2013: 36.3%). The margin
difference compared to 2013 is mainly attributable to the decrease in
milestones, the write-off of the Andromeda receivable and adverse currency
movements.
Adjusted Group EBITDA for 2014 was positive at EUR 7.7 m (2013: EUR 10.4
m). It was mainly impacted by the write-off of the Andromeda receivable.
R&D expenses increased as planned to EUR 12.4 m (2013: EUR 9.7 m). This
results from higher investments in Cure X and Target X initiatives.
In 2014, selling, general and administrative ("SG&A") expenses of the Group
increased by 8% to EUR 18.0 m (2013: EUR 16.6 m). This was due to an
increase in business development and administrative activities to support
the Company's future growth, transaction costs relating to the strategic
collaboration with Sanofi as well as the acquisition of Bionamics and
Euprotec during 2014.
Revenues from the EVT Execute segment amounted to EUR 93.3 m in 2014 and
included EUR 18.5 m of intersegment revenues. The EVT Innovate segment
generated revenues totalling EUR 14.7 m, consisting entirely of third-party
revenues. The gross margin in EVT Execute amounted to 30.7% while EVT
Innovate generated a gross margin of 23.4%. R&D expenses in 2014 stood at
EUR 0.9 m for the EVT Execute segment. The EVT Innovate segment reported
R&D expenses in the amount of EUR 14.1 m. In 2014, the adjusted EBITDA of
the EVT Execute segment was positive at EUR 22.1 m and the EVT Innovate
segment reported an adjusted EBITDA of EUR (14.4) m.
Evotec ended 2014 with a strong liquidity position of EUR 88.8 m (2013: EUR
96.1 m), composed of cash and cash equivalents (EUR 48.7 m) and investments
(EUR 40.1 m). Liquidity in 2014 decreased in comparison with 2013, mainly
due to the fact that milestones of approx. EUR 8 m achieved in Q4 2014 were
only received in Q1 2015. Liquidity adjusted for M&A was at EUR 91.3 m.
2. EVT Execute and EVT Innovate
EVT Execute - Successful year
New alliances and extended collaborations in 2014 strengthen customer and
revenue base and give foundation for strong future growth
Evotec's repeat business, as defined by the percentage of 2014 revenues
coming from customers that the Company already had in 2013, remained high
at 85%. New alliances and extended collaborations were announced in 2014
with Active Biotech, CHDI, Eternygen, Panion, a subsidiary of Convergence,
Shire, Vifor, Medicines for Malaria Venture, the Jain Foundation, the
Leukemia & Lymphoma Society and the Ohio State University Comprehensive
Cancer Center.
Important milestone achievements within existing alliances
In April 2014, Evotec reported the achievement of a milestone in its
biomarker alliance with Roche. The milestone was achieved on the decision
by Roche to use a response prediction marker in an extended Phase I
oncology trial.
In June 2014, Evotec disclosed that its research alliance with Boehringer
Ingelheim had reached a milestone triggering revenues of EUR 1.0 m for
Evotec. The milestone was for the transition of a back-up compound from a
respiratory programme into pre-clinical development. In 2014, Evotec also
reached multiple important milestones in its multi-target collaboration
with Bayer for the treatment of endometriosis. The goal of this
collaboration is to develop three clinical candidates during the five-year
alliance.
Expansion of protein production capabilities in US
In November 2014, Evotec announced it would establish a protein production
and cell services facility on the US East Coast. The new laboratory became
operational in the first quarter of 2015. This addition complements the
expansion of such services at the Abingdon facility and meets an increasing
need to deliver services to major US partners.
EVT Innovate - Broad long-term pipeline of over 70 partnered potential drug
targets
Good progress within clinical development projects (EVT302, EVT100 series,
EVT201, EVT401)
The patient recruitment for the Phase IIb multicentre, randomised,
double-blind, parallel-group, placebo-controlled study to evaluate the
efficacy and safety of RO4602522 (RG1577/EVT302) in patients with moderate
severity Alzheimer's disease was completed in the first quarter of 2014
(544 patients). Roche and its subsidiary Chugai (Japan) have also initiated
and completed several Phase I safety trials during 2014. This clinical
trial is one of very few late-stage trials in this AD patient population.
Results from the Phase IIb study are expected in the first half of 2015.
In March 2014, Janssen informed Evotec that despite no longer developing
EVT103 it would resume development of the programme in CNS, focusing on
another compound from the series and Evotec received a milestone at the end
of the year 2014.
In 2014, JingXin Pharmaceutical Co., Ltd. (China) initiated a Phase II
study in parallel with the Phase I multiple dose study with EVT201. Patient
recruitment is ongoing.
In the first half of 2014, CONBA (China) completed in vivo efficacy studies
for EVT401 which demonstrated that EVT401 is effective against experimental
arthritis in non-human primates. Development of a clinical formulation is
ongoing for use in clinical trials.
Cure X and Target X strategy significantly expanded
In the course of 2014, Evotec broadened its Cure X and Target X strategy
with certain internal discovery projects and by entering the TargetCanMet
collaboration with Debiopharm to identify and develop novel compounds
having the potential to treat multiple forms of solid tumours and
leukaemias. In addition, Evotec entered into three novel research projects
for the treatment of Multiple Sclerosis supported in part by research funds
from the German Federal Ministry of Education and Research. In July,
September and December 2014, Evotec achieved milestones in its TargetAD
collaboration with Janssen Pharmaceuticals Inc., entered into in 2013, for
the identification and selection of targets from the TargetAD database.
In April 2014, Janssen Pharmaceuticals decided to end the partnership on
beta cell regeneration. CureBeta, the alliance between Harvard and Evotec,
remains active.
Evotec regains rights in the EVT070 programme after termination by
Boehringer Ingelheim
In October 2014, Evotec received notice that Boehringer Ingelheim decided
not to further pursue development of EVT070 for strategic reasons. This
resulted in an impairment of the respective intangible asset; rights to the
EVT070 project will revert back to Evotec.
Strategic discovery and development collaboration with Second Genome (US)
(after period end)
In March 2015, Evotec and Second Genome, Inc. announced a collaboration in
small molecule-based discovery and development activities for the treatment
of microbiome-mediated diseases. The collaboration comprises the
identification and optimisation of novel compounds as well as licence
agreements for already existing assets developed by Evotec. Evotec and
Second Genome triggers an undisclosed upfront payment. Evotec is also
eligible for pre-clinical, clinical and regulatory milestones as well as
royalty payments related to commercialisation of any product.
DiaPep277(R) programme terminated by Hyperion Therapeutics; Evotec enters
settlement agreement with Andromeda/Hyperion Therapeutics (after
period-end)
On 08 September 2014, US-based Hyperion announced it was discontinuing the
product development of DiaPep277(R) for the treatment of type 1 diabetes.
Hyperion had acquired Andromeda Biotech, Ltd. ("Andromeda") in June 2014.
In February 2015, Evotec and Andromeda/Hyperion entered into a release
agreement to compensate Evotec especially against reputational damage in
respect of DiaPep277(R).
3. Upgrading Evotec's drug discovery platform
Acquisition of Bionamics GmbH to accelerate EVT Innovate
Effective April 2014, Evotec acquired the German-based company Bionamics
GmbH, an asset management company that focuses on the translation of
academic innovations into attractive assets for the biotech and Pharma
industry.
Acquisition of Euprotec adds expertise in infectious diseases
In the first half of 2014, Evotec acquired Euprotec, based in Manchester,
UK. Euprotec is a leader in anti-infective drug discovery services and has
unique capabilities, which augment and complement Evotec's high-end drug
discovery platform.
4. Strategic collaboration with Sanofi
On 20 March 2015, Evotec announced that a definitive agreement for a major
multi-component strategic alliance over the next five years has been signed
with Sanofi. The transaction is expected to close on 31 March 2015. The
signing successfully concludes the exclusive negotiations for a major
multi-component strategic collaboration between the two companies entered
and announced on 02 December 2014.
Evotec and Sanofi will jointly progress a portfolio of primarily oncology
related projects, including five advanced, pre-clinical projects and
further discovery-stage assets, to IND ("Investigational New Drug"). Evotec
and Sanofi will also enter into an outsourcing alliance and Evotec will
acquire Sanofi's scientific operations in Toulouse, France. Evotec will
integrate these scientific operations including 208 highly experienced
employees into its global drug discovery platform. From this new facility,
Evotec will perform collaborative research with its Pharma, biotech and
academic partners as well as internal research. Evotec will also assume
management of Sanofi's global screening library and will combine its own
and Sanofi's compound libraries and make them available for screening
projects to Evotec's partners.
The collaboration will result in a minimum guaranteed commitment from
Sanofi to Evotec of EUR 250 m over the next five years, including more than
EUR 40 m upfront cash payment.
5. Guidance 2015
Evotec pursues a business model in which revenues and operating
profitability are highly dependent on the achievement and timing of
milestones.
In 2015, total Group revenues excluding milestones, upfronts and licences
are expected to increase more than 20%. This assumption is based on the
current order book, expected new contracts and contract extensions.
Evotec's Group EBITDA before changes in contingent considerations is
expected to be positive. EBITDA is defined as earnings before interest,
taxes, depreciation and amortisation of intangibles. EBITDA excludes
impairments on intangible, tangible assets and goodwill as well as the
total non-operating result.
Evotec expects research and development (R&D) expenses to grow to EUR 15 m
- EUR 20 m in 2015.
In 2015, Evotec will continue to invest in its technology platforms and
capacities in order to drive its long-term growth strategy. It is therefore
planned that up to EUR 10 m will be invested in further capacity increases
and the upgrade of Evotec's technological capabilities.
Liquidity is expected to be well in excess of EUR 100 m at 31 December
2015. This forecast excludes any potential cash outflow from M&A or similar
transactions.
The Company's mid-term financial plan does not envisage the need for any
additional external financing for Evotec's operating business. However, all
strategically desirable moves such as potential company or product
acquisitions will need to be considered on a case by case basis.
Webcast/Conference Call
Evotec will hold a conference call to discuss the 2014 FY results as well
as to provide an update on its performance. Furthermore, the Management
Board will present an outlook for fiscal year 2015. The conference will be
held in English.
Conference call details
Date: Tuesday, 24 March 2015
Time: 02.00 pm CET (01.00 pm GMT/09.00 am EDT)
From Germany: +49 69 22 22 29 043
From UK: +44 20 300 92452
From USA: +1 855 402 7766
Access Code: 37969784#
A simultaneous slide presentation for participants dialling in via phone is
available at http://www.audio-webcast.com/, password: evotec0315.
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 22 22 33 985 (Germany) or +44 20 3426
2807 (UK) and in the US by dialling +1 866 535 8030. The access code is
654573#. The on-demand version of the webcast will be available on our
website:
http://www.evotec.com/article/en/Investoren/Finanzen/Finanzberichte-2013-2
015/238/6/26
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, academics, patient advocacy
groups and venture capitalists. 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, inflammation and infectious diseases. Evotec
has long-term discovery alliances with partners including Bayer, Boehringer
Ingelheim, CHDI, Genentech, Janssen Pharmaceuticals, MedImmune/AstraZeneca,
Roche and UCB. In addition, the Company has existing development
partnerships and product candidates both in clinical and pre-clinical
development. These include partnerships with Boehringer Ingelheim and
MedImmune in the field of diabetes, with Janssen Pharmaceuticals in the
field of depression 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 2014 results
Key figures of consolidated income statement
Evotec AG and subsidiaries
In TEUR except share data and per share data
January to December Change
2014 2013 in %
Revenues 89,496 85,938 4
Gross margin in % 32.8 36.3 (10)
Research and development expenses (12,404) (9,664) 28
Selling, general and administrative expenses (17,990) (16,597) 8
Amortisation of intangible assets (2,462) (3,222) (24)
Impairment of goodwill - (1,948)
Impairment of intangible assets (net) (8,523) (22,023) (32)
Impairment of property, plant & equipment - (1,076)
Restructuring expenses - (474)
Other operating income (expenses), net 5,620 2,430 131
Operating result (6,381) (21,351) 70
EBITDA adjusted* 7,711 10,394 (26)
Net loss (6,978) (25,433)
Weighted average shares outstanding 131,291,257 121,215,288
Net loss per share (basic/diluted) (0.05) (0.21)
* EBITDA was adjusted for changes in contingent considerations as well as
for extraordinary effects with regards to the bargain purchase resulting
from the acquisition of Bionamics GmbH.
Segment information 2014
In TEUR
EVT EVT Intersegment Evotec
Execute Innovate eliminations Group
Revenues 93,287 14,672 (18,463) 89,496
Gross margin in % 30.7 23.4 32.8
R&D expenses (921) (14,147) 2,664 (12,404)
SG&A expenses (13,550) (4,440) - (17,990)
Amortisation of
intangible assets (2,148) (314) - (2,462)
Impairment of intangible
assets (net) - (8,523) - (8,523)
Other operating income
(expenses), net 2,206 3,414 - 5,620
Operating result 14,197 (20,578) - (6,381)
EBITDA adjusted* 22,065 (14,354) - 7,711
* EBITDA was adjusted for changes in contingent considerations as well as
for extraordinary effects with regards to the bargain purchase resulting
from the acquisition of Bionamics GmbH.
Key figures of consolidated statement of financial position
Evotec AG and subsidiaries
In TEUR
31 Dec 31 Dec Change
2014 2013 in %
Cash, cash equivalents and investments 88,822 96,143 (8)
Working capital 16,773 4,657 360
Current and non-current loans and finance
lease obligations 21,549 17,241 25
Stockholders' equity 158,383 158,967 -
Total assets 224,600 227,380 (1)
Contact Evotec AG:
Gabriele Hansen, VP Corporate Communications & Investor Relations, Phone:
+49.(0)40.56081-255, gabriele.hansen@evotec.com
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service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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@evotec.com
Internet: www.evotec.com
ISIN: DE0005664809
WKN: 566480
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart
End of News DGAP News-Service
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336403 24.03.2015
Hamburg, Germany - 24 March 2015: Evotec AG (Prime Standard Frankfurt Stock
Exchange: EVT, TecDAX, ISIN: DE0005664809) today announced its financial
results for the fiscal year ended 31 December 2014.
Base revenue growth of 7% and positive adjusted EBITDA reflect strong
performance; continued strong cash position; strategic alliance with Sanofi
provides significant upside potential
- Group revenues amounted to EUR 89.5 m, an increase of 4% compared to
the previous year; base revenues increased by 7%; revenues from EVT
Execute amounted to EUR 93.3 m (Third-party revenues: EUR 74.8 m)
- Adjusted Group EBITDA positive at EUR 7.7 m and EUR 22.1 m for EVT
Execute
- Operating loss of EUR 6.4 m and net loss of EUR 7.0 m mainly due to
impairment of DiaPep277(R)
- Strong liquidity position of EUR 88.8 m; liquidity adjusted for M&A of
EUR 93.1 m
EVT Execute
Successful year for EVT Execute
- New alliances and extended collaborations in 2014 strengthen customer
and revenue base and give foundation for strong future growth
- Important milestone achievements within existing alliances
- Expansion of protein production capabilities in US
EVT Innovate
Broad long-term pipeline of over 70 partnered potential drug targets
- Good progress within clinical development projects (EVT302, EVT100
series, EVT201, EVT401)
- Cure X and Target X strategy significantly expanded
- Evotec regains rights in the EVT070 programme after termination by
Boehringer Ingelheim
- Strategic discovery and development collaboration with Second Genome
(US) (after period-end)
- DiaPep277(R) programme terminated by Hyperion Therapeutics; Evotec
enters settlement agreement with Andromeda/Hyperion Therapeutics (after
period-end)
Upgrading Evotec's drug discovery platform
- Acquisition of Bionamics GmbH to accelerate EVT Innovate
- Acquisition of Euprotec adds expertise in infectious diseases
Strategic collaboration with Sanofi
- Signing of definitive agreement of major multi-component strategic
alliance with Sanofi (after period-end)
Guidance 2015
- Group revenues excluding milestones, upfronts and licences expected to
increase by more than 20%
- Adjusted EBITDA positive
- R&D expenditure is expected to grow to EUR 15 m - EUR 20 m
- Liquidity is expected to be well in excess of EUR 100 m
- Capacity and capability building continued with up to EUR 10 m
1. Operational performance
Base revenue growth of 7% and positive adjusted EBITDA reflect strong
performance; continued strong cash position
Evotec Group revenues amounted to EUR 89.5 m, an increase of 4% compared to
the previous year (2013: EUR 85.9 m). This increase is primarily due to
continued growth in the EVT Execute base business.
Total milestone, upfront and licence revenues achieved in Evotec's
partnerships were EUR 16.1 m, a slight decrease in comparison with prior
year (EUR 17.1 m). The Group's base business (revenues excluding
milestones, upfronts and licences) for the year 2014 increased by 7% to EUR
73.4 m (2013: EUR 68.8 m).
The gross margin of the Group was 32.8% (2013: 36.3%). The margin
difference compared to 2013 is mainly attributable to the decrease in
milestones, the write-off of the Andromeda receivable and adverse currency
movements.
Adjusted Group EBITDA for 2014 was positive at EUR 7.7 m (2013: EUR 10.4
m). It was mainly impacted by the write-off of the Andromeda receivable.
R&D expenses increased as planned to EUR 12.4 m (2013: EUR 9.7 m). This
results from higher investments in Cure X and Target X initiatives.
In 2014, selling, general and administrative ("SG&A") expenses of the Group
increased by 8% to EUR 18.0 m (2013: EUR 16.6 m). This was due to an
increase in business development and administrative activities to support
the Company's future growth, transaction costs relating to the strategic
collaboration with Sanofi as well as the acquisition of Bionamics and
Euprotec during 2014.
Revenues from the EVT Execute segment amounted to EUR 93.3 m in 2014 and
included EUR 18.5 m of intersegment revenues. The EVT Innovate segment
generated revenues totalling EUR 14.7 m, consisting entirely of third-party
revenues. The gross margin in EVT Execute amounted to 30.7% while EVT
Innovate generated a gross margin of 23.4%. R&D expenses in 2014 stood at
EUR 0.9 m for the EVT Execute segment. The EVT Innovate segment reported
R&D expenses in the amount of EUR 14.1 m. In 2014, the adjusted EBITDA of
the EVT Execute segment was positive at EUR 22.1 m and the EVT Innovate
segment reported an adjusted EBITDA of EUR (14.4) m.
Evotec ended 2014 with a strong liquidity position of EUR 88.8 m (2013: EUR
96.1 m), composed of cash and cash equivalents (EUR 48.7 m) and investments
(EUR 40.1 m). Liquidity in 2014 decreased in comparison with 2013, mainly
due to the fact that milestones of approx. EUR 8 m achieved in Q4 2014 were
only received in Q1 2015. Liquidity adjusted for M&A was at EUR 91.3 m.
2. EVT Execute and EVT Innovate
EVT Execute - Successful year
New alliances and extended collaborations in 2014 strengthen customer and
revenue base and give foundation for strong future growth
Evotec's repeat business, as defined by the percentage of 2014 revenues
coming from customers that the Company already had in 2013, remained high
at 85%. New alliances and extended collaborations were announced in 2014
with Active Biotech, CHDI, Eternygen, Panion, a subsidiary of Convergence,
Shire, Vifor, Medicines for Malaria Venture, the Jain Foundation, the
Leukemia & Lymphoma Society and the Ohio State University Comprehensive
Cancer Center.
Important milestone achievements within existing alliances
In April 2014, Evotec reported the achievement of a milestone in its
biomarker alliance with Roche. The milestone was achieved on the decision
by Roche to use a response prediction marker in an extended Phase I
oncology trial.
In June 2014, Evotec disclosed that its research alliance with Boehringer
Ingelheim had reached a milestone triggering revenues of EUR 1.0 m for
Evotec. The milestone was for the transition of a back-up compound from a
respiratory programme into pre-clinical development. In 2014, Evotec also
reached multiple important milestones in its multi-target collaboration
with Bayer for the treatment of endometriosis. The goal of this
collaboration is to develop three clinical candidates during the five-year
alliance.
Expansion of protein production capabilities in US
In November 2014, Evotec announced it would establish a protein production
and cell services facility on the US East Coast. The new laboratory became
operational in the first quarter of 2015. This addition complements the
expansion of such services at the Abingdon facility and meets an increasing
need to deliver services to major US partners.
EVT Innovate - Broad long-term pipeline of over 70 partnered potential drug
targets
Good progress within clinical development projects (EVT302, EVT100 series,
EVT201, EVT401)
The patient recruitment for the Phase IIb multicentre, randomised,
double-blind, parallel-group, placebo-controlled study to evaluate the
efficacy and safety of RO4602522 (RG1577/EVT302) in patients with moderate
severity Alzheimer's disease was completed in the first quarter of 2014
(544 patients). Roche and its subsidiary Chugai (Japan) have also initiated
and completed several Phase I safety trials during 2014. This clinical
trial is one of very few late-stage trials in this AD patient population.
Results from the Phase IIb study are expected in the first half of 2015.
In March 2014, Janssen informed Evotec that despite no longer developing
EVT103 it would resume development of the programme in CNS, focusing on
another compound from the series and Evotec received a milestone at the end
of the year 2014.
In 2014, JingXin Pharmaceutical Co., Ltd. (China) initiated a Phase II
study in parallel with the Phase I multiple dose study with EVT201. Patient
recruitment is ongoing.
In the first half of 2014, CONBA (China) completed in vivo efficacy studies
for EVT401 which demonstrated that EVT401 is effective against experimental
arthritis in non-human primates. Development of a clinical formulation is
ongoing for use in clinical trials.
Cure X and Target X strategy significantly expanded
In the course of 2014, Evotec broadened its Cure X and Target X strategy
with certain internal discovery projects and by entering the TargetCanMet
collaboration with Debiopharm to identify and develop novel compounds
having the potential to treat multiple forms of solid tumours and
leukaemias. In addition, Evotec entered into three novel research projects
for the treatment of Multiple Sclerosis supported in part by research funds
from the German Federal Ministry of Education and Research. In July,
September and December 2014, Evotec achieved milestones in its TargetAD
collaboration with Janssen Pharmaceuticals Inc., entered into in 2013, for
the identification and selection of targets from the TargetAD database.
In April 2014, Janssen Pharmaceuticals decided to end the partnership on
beta cell regeneration. CureBeta, the alliance between Harvard and Evotec,
remains active.
Evotec regains rights in the EVT070 programme after termination by
Boehringer Ingelheim
In October 2014, Evotec received notice that Boehringer Ingelheim decided
not to further pursue development of EVT070 for strategic reasons. This
resulted in an impairment of the respective intangible asset; rights to the
EVT070 project will revert back to Evotec.
Strategic discovery and development collaboration with Second Genome (US)
(after period end)
In March 2015, Evotec and Second Genome, Inc. announced a collaboration in
small molecule-based discovery and development activities for the treatment
of microbiome-mediated diseases. The collaboration comprises the
identification and optimisation of novel compounds as well as licence
agreements for already existing assets developed by Evotec. Evotec and
Second Genome triggers an undisclosed upfront payment. Evotec is also
eligible for pre-clinical, clinical and regulatory milestones as well as
royalty payments related to commercialisation of any product.
DiaPep277(R) programme terminated by Hyperion Therapeutics; Evotec enters
settlement agreement with Andromeda/Hyperion Therapeutics (after
period-end)
On 08 September 2014, US-based Hyperion announced it was discontinuing the
product development of DiaPep277(R) for the treatment of type 1 diabetes.
Hyperion had acquired Andromeda Biotech, Ltd. ("Andromeda") in June 2014.
In February 2015, Evotec and Andromeda/Hyperion entered into a release
agreement to compensate Evotec especially against reputational damage in
respect of DiaPep277(R).
3. Upgrading Evotec's drug discovery platform
Acquisition of Bionamics GmbH to accelerate EVT Innovate
Effective April 2014, Evotec acquired the German-based company Bionamics
GmbH, an asset management company that focuses on the translation of
academic innovations into attractive assets for the biotech and Pharma
industry.
Acquisition of Euprotec adds expertise in infectious diseases
In the first half of 2014, Evotec acquired Euprotec, based in Manchester,
UK. Euprotec is a leader in anti-infective drug discovery services and has
unique capabilities, which augment and complement Evotec's high-end drug
discovery platform.
4. Strategic collaboration with Sanofi
On 20 March 2015, Evotec announced that a definitive agreement for a major
multi-component strategic alliance over the next five years has been signed
with Sanofi. The transaction is expected to close on 31 March 2015. The
signing successfully concludes the exclusive negotiations for a major
multi-component strategic collaboration between the two companies entered
and announced on 02 December 2014.
Evotec and Sanofi will jointly progress a portfolio of primarily oncology
related projects, including five advanced, pre-clinical projects and
further discovery-stage assets, to IND ("Investigational New Drug"). Evotec
and Sanofi will also enter into an outsourcing alliance and Evotec will
acquire Sanofi's scientific operations in Toulouse, France. Evotec will
integrate these scientific operations including 208 highly experienced
employees into its global drug discovery platform. From this new facility,
Evotec will perform collaborative research with its Pharma, biotech and
academic partners as well as internal research. Evotec will also assume
management of Sanofi's global screening library and will combine its own
and Sanofi's compound libraries and make them available for screening
projects to Evotec's partners.
The collaboration will result in a minimum guaranteed commitment from
Sanofi to Evotec of EUR 250 m over the next five years, including more than
EUR 40 m upfront cash payment.
5. Guidance 2015
Evotec pursues a business model in which revenues and operating
profitability are highly dependent on the achievement and timing of
milestones.
In 2015, total Group revenues excluding milestones, upfronts and licences
are expected to increase more than 20%. This assumption is based on the
current order book, expected new contracts and contract extensions.
Evotec's Group EBITDA before changes in contingent considerations is
expected to be positive. EBITDA is defined as earnings before interest,
taxes, depreciation and amortisation of intangibles. EBITDA excludes
impairments on intangible, tangible assets and goodwill as well as the
total non-operating result.
Evotec expects research and development (R&D) expenses to grow to EUR 15 m
- EUR 20 m in 2015.
In 2015, Evotec will continue to invest in its technology platforms and
capacities in order to drive its long-term growth strategy. It is therefore
planned that up to EUR 10 m will be invested in further capacity increases
and the upgrade of Evotec's technological capabilities.
Liquidity is expected to be well in excess of EUR 100 m at 31 December
2015. This forecast excludes any potential cash outflow from M&A or similar
transactions.
The Company's mid-term financial plan does not envisage the need for any
additional external financing for Evotec's operating business. However, all
strategically desirable moves such as potential company or product
acquisitions will need to be considered on a case by case basis.
Webcast/Conference Call
Evotec will hold a conference call to discuss the 2014 FY results as well
as to provide an update on its performance. Furthermore, the Management
Board will present an outlook for fiscal year 2015. The conference will be
held in English.
Conference call details
Date: Tuesday, 24 March 2015
Time: 02.00 pm CET (01.00 pm GMT/09.00 am EDT)
From Germany: +49 69 22 22 29 043
From UK: +44 20 300 92452
From USA: +1 855 402 7766
Access Code: 37969784#
A simultaneous slide presentation for participants dialling in via phone is
available at http://www.audio-webcast.com/, password: evotec0315.
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 22 22 33 985 (Germany) or +44 20 3426
2807 (UK) and in the US by dialling +1 866 535 8030. The access code is
654573#. The on-demand version of the webcast will be available on our
website:
http://www.evotec.com/article/en/Investoren/Finanzen/Finanzberichte-2013-2
015/238/6/26
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, academics, patient advocacy
groups and venture capitalists. 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, inflammation and infectious diseases. Evotec
has long-term discovery alliances with partners including Bayer, Boehringer
Ingelheim, CHDI, Genentech, Janssen Pharmaceuticals, MedImmune/AstraZeneca,
Roche and UCB. In addition, the Company has existing development
partnerships and product candidates both in clinical and pre-clinical
development. These include partnerships with Boehringer Ingelheim and
MedImmune in the field of diabetes, with Janssen Pharmaceuticals in the
field of depression 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 2014 results
Key figures of consolidated income statement
Evotec AG and subsidiaries
In TEUR except share data and per share data
January to December Change
2014 2013 in %
Revenues 89,496 85,938 4
Gross margin in % 32.8 36.3 (10)
Research and development expenses (12,404) (9,664) 28
Selling, general and administrative expenses (17,990) (16,597) 8
Amortisation of intangible assets (2,462) (3,222) (24)
Impairment of goodwill - (1,948)
Impairment of intangible assets (net) (8,523) (22,023) (32)
Impairment of property, plant & equipment - (1,076)
Restructuring expenses - (474)
Other operating income (expenses), net 5,620 2,430 131
Operating result (6,381) (21,351) 70
EBITDA adjusted* 7,711 10,394 (26)
Net loss (6,978) (25,433)
Weighted average shares outstanding 131,291,257 121,215,288
Net loss per share (basic/diluted) (0.05) (0.21)
* EBITDA was adjusted for changes in contingent considerations as well as
for extraordinary effects with regards to the bargain purchase resulting
from the acquisition of Bionamics GmbH.
Segment information 2014
In TEUR
EVT EVT Intersegment Evotec
Execute Innovate eliminations Group
Revenues 93,287 14,672 (18,463) 89,496
Gross margin in % 30.7 23.4 32.8
R&D expenses (921) (14,147) 2,664 (12,404)
SG&A expenses (13,550) (4,440) - (17,990)
Amortisation of
intangible assets (2,148) (314) - (2,462)
Impairment of intangible
assets (net) - (8,523) - (8,523)
Other operating income
(expenses), net 2,206 3,414 - 5,620
Operating result 14,197 (20,578) - (6,381)
EBITDA adjusted* 22,065 (14,354) - 7,711
* EBITDA was adjusted for changes in contingent considerations as well as
for extraordinary effects with regards to the bargain purchase resulting
from the acquisition of Bionamics GmbH.
Key figures of consolidated statement of financial position
Evotec AG and subsidiaries
In TEUR
31 Dec 31 Dec Change
2014 2013 in %
Cash, cash equivalents and investments 88,822 96,143 (8)
Working capital 16,773 4,657 360
Current and non-current loans and finance
lease obligations 21,549 17,241 25
Stockholders' equity 158,383 158,967 -
Total assets 224,600 227,380 (1)
Contact Evotec AG:
Gabriele Hansen, VP Corporate Communications & Investor Relations, Phone:
+49.(0)40.56081-255, gabriele.hansen@evotec.com
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service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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@evotec.com
Internet: www.evotec.com
ISIN: DE0005664809
WKN: 566480
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart
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