Evotec reports 34% revenue and profitable earnings growth; revenue guidance raised

8/11/2011, 7:14 AM (Source: GlobeNewswire)
Evotec AG /
Evotec reports 34% revenue and profitable earnings growth; revenue guidance
raised
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.

Hamburg, Germany - 11 August 2011: Evotec AG (Frankfurt Stock Exchange: EVT,
TecDAX) today reported financial results and corporate updates for the first
half of 2011.

·         Strong H1 operational performance
- Discovery alliances revenues +34% to € 33.4 m
- Operating result +169% to € 0.9 m
- Continued strong liquidity of € 56.5 m despite significant acquisitions and
technology investments for growth

·         Expanding portfolio of discovery alliances; good progress and
milestone achievements
- Opening the field of biomarker research in strategic partnership with Roche

- New integrated drug discovery alliance with UCB (after period-end)

- Significant milestone achievement with Boehringer Ingelheim:
€ 2 m for clinical Phase I initiation in neuropathic pain in May 2011

- Milestone achieved in alliance with Ono Pharmaceutical; collaboration expanded

·         Continued expansion of scientific and technology leadership
- Acquisition of Kinaxo (Evotec Munich) completed as of April 2011

- Strengthening integrated innovation service offering through acquisition of
Compound Focus (Evotec San Francisco)

- Strategic alliance with PsychoGenics

·         development partnerships continue to provide upside potential
- New asset deal with EVT 401 in animal health (after period-end)

- DiaPep277 Phase III programme in diabetes progressing with Andromeda/TEVA

- Phase II of EVT 101 in treatment-resistant depression voluntarily terminated

·         Revenue guidance for 2011 raised
- Approximately 30% revenue growth expected within core business, leading to
revenues of € 70 to 72 m (guidance before:
€ 68 to 70 m)

- Strategic cash position of Evotec remains strong: liquidity guidance of > €
55 m at year-end confirmed

- Strong order book indicates strong continuing growth

·         Others
- Roland Oetker and Prof Andreas Pinkwart elected to Evotec Supervisory Board



1. Operational performance

Best first half-year performance in Company history: revenues +34% to € 33.4 m
and operating result +169% to € 0.9 m

Evotec reported a strong operational performance for the first half of 2011.
Total Group revenues increased by 34% to € 33.4 m (2010:
€ 25.0 m) including € 3.9 m from the acquisitions of DeveloGen, Kinaxo and
Compound Focus in H1 2011. Meanwhile R&D expenses increased by € 1.7 m (59%),
mainly from the inclusion of DeveloGen and Kinaxo R&D expenses and the strategic
build up of Evotec's beta cell franchise "CureBeta". Despite the acquisitions,
SG&A costs declined by 2%. On this basis, Evotec's operating result for the
first half of 2011 was positive at € 0.9 m (2010: € 0.3 m). The Company operates
on a strong gross margin of more than 40%.

Liquidity including cash, cash equivalents and investments including long-term
financial assets at the end of June 2011 remained strong at € 56.5 m.

Going forward, potential milestone achievements in H2 are expected to further
enhance Evotec's operating financial performance giving a strong basis for
increased operating profitability over 2010 (before impairment, if any).

2. Discovery alliances update

Expanding portfolio of discovery alliances leads to significant growth in sales
and orders; good progress in collaborations

Evotec's strategy is to build sustainable, performance-based drug discovery
alliances. Consequently, Evotec focuses on high value, revenue generating
partnerships with pharmaceutical and biotechnology companies. The Company signed
a number of important new contracts, contract extensions and expansions and made
good progress in many of its current programmes.

Opening the field of response prediction and biomarker research in strategic
partnership with Roche

In June 2011, Evotec announced an important strategic collaboration with Roche
in novel protein-activity based biomarkers for oncology drugs in development.
Evotec will employ its PhosphoScout® platform, to discover protein-
phosphorylations that predict favourable dosage and efficacy of targeted cancer
drugs in patients. These biomarkers are core to the development of targeted
therapeutics for cancer therapy. Roche is responsible for conducting clinical
trials as well as assessing the development of companion diagnostics for patient
stratification. Under the initial three-year term Evotec and Roche will conduct
multiple biomarker programmes for therapeutic antibodies or small molecule
inhibitors. Evotec will receive undisclosed up-front and success-based payments
for each programme.

New integrated drug discovery alliance with UCB (after period-end)

In July 2011, Evotec entered into a three year integrated drug discovery
collaboration with UCB to identify small molecule modulators of important
biological targets, selected by UCB, involved in CNS disorders. As part of the
collaboration, Evotec will apply their integrated drug discovery expertise and
technologies to identify interesting small molecules against the selected
targets. The molecules will be further optimised and progressed through lead
optimization to preclinical candidates. Evotec will receive a fixed research
funding fee over the term of collaboration and will be further rewarded on
achieving the goals of the research collaboration with early stage discovery,
preclinical and clinical milestones. In addition, Evotec will receive royalties
based on net sales of any approved drugs from the collaboration.

Milestone achievements with Boehringer Ingelheim and Ono Pharmaceutical
During the second quarter of 2011, continued strong progress was made in
Evotec's discovery collaboration with Boehringer Ingelheim.
A second back-up compound in this strategic alliance has advanced into clinical
trials as a novel treatment for neuropathic pain. With the initiation of the
Phase I clinical studies, Evotec earned a milestone payment of € 2.0 m in May
2011. As of 30 June 2011, Evotec achieved in total 13 milestones within this
collaboration that was initiated in 2004.

In June, Evotec announced the achievement of specific success criteria in its
research collaboration with Ono Pharmaceutical Co., Ltd. and the receipt of a
milestone payment. This collaboration was initiated in October 2009 to identify
small molecules targeting an ion channel implicated in cardiovascular, CNS and
urological diseases and the collaboration has now successfully identified
multiple compounds meeting various criteria in activity, selectivity and
pharmacokinetic characteristics. Evotec and Ono have agreed to continue this
research collaboration until April 2012 and to enter into lead optimisation.
3. Acquisition update
Continued expansion of scientific and technology leadership Evotec focuses on
augmenting its technology platform to continuously strengthen its ability to
provide integrated drug discovery solutions for customers. At the same time, the
Company is developing early assets in highly innovative areas of drug discovery
such as beta cell biology and technologies to better understand oncology or
metabolic diseases to kick-start new alliances. In line with this strategy, the
Company has announced two acquisitions in H1 2011:
Acquisition of Kinaxo (Evotec Munich) completed as of 18 April 2011

During the second quarter of 2011, Evotec completed the acquisition of Kinaxo
Biotechnologies GmbH, a Munich-based drug discovery alliance company supporting
the development of targeted drugs. The acquisition added proprietary
technologies for compound profiling, target deconvolution and response
prediction, important for timely decisions on drug efficacy and safety,
especially in the key area of oncology. These unique technologies significantly
strengthen the Company's discovery offering to customers.

As a result of the transaction, first announced on 9 February 2011, Kinaxo has
become a wholly-owned integrated subsidiary of Evotec.

Strengthening integrated innovation offering through acquisition of Compound
Focus (Evotec San Francisco)

Effective 1 June 2011, Evotec acquired Compound Focus, Inc., the compound
management business of BioFocus, based in South San Francisco, US. The company's
technologies are focused on automated storage and custom design solutions for
small molecule drugs. The current key customer base includes US federal
institutes and pharma companies such as Elan, Sunovion Pharmaceuticals
(formerly: Sepracor) and Procter & Gamble.

This acquisition allows Evotec to augment its early drug discovery offering
substantially and provides critical mass to its existing compound management
offering. It will substantially improve the Company's ability to support its
alliance partners in developing and managing their compound libraries and
further strengthen its own hit identification capabilities. In addition, the
acquisition adds profitable revenues further enhancing Evotec's earnings profile
going forward.
4. Status of clinical and preclinical programmes


Development partnerships continue to provide upside potential

Evotec is focusing on a number of carefully selected core assets, which the
Company is progressing towards clinical development and for which it is seeking
strategic product development partnerships to fund these developments. To reduce
Evotec's risk profile the Company is not investing in larger clinical trials on
its own. The Company's current clinical stage portfolio comprises several
development partnerships.

The following updates can be reported:

New asset deal with EVT 401 in animal health (after period-end)

Evotec has announced that it has entered into a world-wide license and
collaboration agreement with a top tier animal health company that intends to
develop the proprietary Evotec compound EVT 401, a selective, small molecule
P2X7 antagonist, in the companion animal market. Evotec is entitled to receive
technology access fees, development and commercial milestone payments, and
significant tiered royalties on net sales. Evotec retains all rights to the
programme for human therapeutic use.

DiaPep277 Phase III programme in diabetes progressing with Andromeda
Biotech/TEVA

DiaPep277, a synthetic peptide in development for the treatment of type 1
diabetes, acquired through the acquisition of DeveloGen, is progressing as
planned in Phase III studies conducted by Andromeda Biotech and Teva
Pharmaceutical. First Phase III data are expected to be published in 2012.

Phase II of EVT 101 in treatment-resistant depression voluntarily terminated

In May, Evotec and Roche decided to voluntarily terminate the first proof-of-
concept study in treatment-resistant depression with their NR2B sub-type
selective NMDA antagonist EVT 101. The decision was triggered by difficulties in
recruiting patients under the current study protocol, resulting in the
possibility of inconclusive results. EVT 101 was generally well tolerated in
healthy volunteers and the patients enrolled. Evotec now holds all rights in the
EVT 100 series, including the back-up compound EVT 103, and has reinitiated
partnering discussions for these assets.

5. Guidance 2011

Revenue guidance for 2011 raised

Based on a strong H1 2011 operational performance, Evotec for the second time in
2011 raised its revenue guidance for the current fiscal year that was published
on 24 March and first updated with the acquisition of Compound Focus on 1 June:
In 2011, total Group revenues are now expected to grow by approximately 30%,
leading to revenues of € 70 to 72 m (March: € 64 to 66 m; June: € 68 to 70 m).

Evotec also confirmed its 2011 year-end liquidity target of > € 55 m at constant
year-end 2010 currencies. This target was updated as a result  of the Compound
Focus acquisition in June 2011 (before: € 65 m) as

€ 10.25 m of the potential total cash purchase price of € 12.5 m is paid in
2011.

All other financial targets remain unchanged. Focusing on key programmes,
especially in the fields of innovation in metabolic diseases and regenerative
medicine, the Company expects research & development (R&D) expenses to increase
to approximately € 10 m from 2010 levels. On this basis, Evotec's Group
operating result before impairment charges, if any, is expected to be profitable
and improve over 2010.
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, 11 August 2011

Time:

09.30 a.m. CEST

08.30 a.m. BST

03.30 a.m. US time (East Coast)
From Europe:

+49 (0) 6958 999 0805 (Germany)

+44-207-153-2027 (UK)

From the US: +1-480-629-9726
Access Code: 4460055
A simultaneous slide presentation for participants dialing in via phone is
available at www.equitystory.com, password: evotec0811.
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 dialing +49 69 58 99 90 568 (Germany) or +44 207 154 2833
(UK) and in the US by dialing +1 303 590 3030. The access code is 4460055#. The
on-demand version of the webcast will be available on our
website:www.evotec.com/Investors/Financial-Reports-2010-2011/



Second Quarter Report 2011

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 |Change |Three months ended June| Change |
| | | | 30 | |
| | June 30 | in % | | in % |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|   | 2011 | 2010 |   | 2011 | 2010 |   |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|   |   |   |   |   |   |   |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Revenue | 33,365| 24,968| 33.63| 18,259| 15,127| 20.70|
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Gross margin | 43.29| 45.07|  | 46.51| 49.75|  |
|in % | | | | | | |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|  |  |  |  |  |  |  |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Research and | | | | | | |
|development | 4,665| 2,927| 59.38| 2,351| 1,193| 97.07|
|expenses | | | | | | |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Selling, | | | | | | |
|general and | 7,560| 7,702| (1.84)| 3,771| 4,352| (13.35)|
|administrative| | | | | | |
|expenses | | | | | | |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Amortisation | 549| 260| 111.15| 274| 131| 109.16|
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Other | (1,034)| (1,855)|(44.26)| 566| (945)|   |
|operating | | | | | |(159.85)|
|income | | | | | | |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Other | 1,782| 1,878| (5.11)| (201)| 978|(120.55)|
|operating | | | | | | |
|expenses | | | | | | |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|  |  |  |  |  |  |  |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Operating | 921| 342| 169.30| 1,731| 1,816| (4.68)|
|income (loss) | | | | | | |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Operating | 921| 342| 169.30| 1,731| 1,816| (4.68)|
|income (loss)*| | | | | | |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|  |  |  |  |  |  |  |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Net income | 794| 95| 735.79| 1,182| 1,342| (11.92)|
|(loss) | | | | | | |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|  |  |  |  |  |  |  |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Weighted | | |  | | |  |
|average shares|114,994,081|107,356,508| |117,003,658|107,372,695| |
|outstanding | | |  | | |  |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Net income per| 0,01| 0,00|  | 0,01| 0,01|  |
|share basic | | | | | | |
| | | |  | | |  |
+--------------+-----------+-----------+-------+-----------+-----------+--------+
|Net income per| 0,01| 0,00|  | 0,01| 0,01|  |
|share | | | | | | |
|(diluted) | | | | | | |
+--------------+-----------+-----------+-------+-----------+-----------+--------+

*Before impairment.
Key Figures of Consolidated Interim Statement of Financial Position

Evotec AG and Subsidiaries

Euro in thousands

+-------------------------------------------+-------------+------------+-------+
|   |June 30, 2011|Dec 31, 2010|Change |
| | | | |
| | | | in % |
+-------------------------------------------+-------------+------------+-------+
|  |  |  |  |
+-------------------------------------------+-------------+------------+-------+
|Liquidity | 56,471| 70,401|(19.79)|
+-------------------------------------------+-------------+------------+-------+
|Working capital | (7,634)*| (5,039)| 51.50|
+-------------------------------------------+-------------+------------+-------+
|Current and non-current portion of loans |  |  |  |
|and finance lease obligations | | | |
| | 11,841| 11,998| (1.31)|
+-------------------------------------------+-------------+------------+-------+
|Stockholders' equity | 138,611| 132,637| 4.50|
+-------------------------------------------+-------------+------------+-------+
|  |  |  |  |
+-------------------------------------------+-------------+------------+-------+
|Total assets | 200,655| 191,859| 4.58|
+-------------------------------------------+-------------+------------+-------+

*excluding acquisitions of Kinaxo and Compound Focus

Contact Evotec AG:

Dr Werner Lanthaler, Chief Executive Officer, Phone: +49.(0)40.56081-242,
werner.lanthaler@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 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/1537797/469596.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.

Source: Evotec AG via Thomson Reuters ONE

[HUG#1537797]
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.