Evotec AG Reports First Half 2007 Results and Business Update
HAMBURG, Germany and OXFORD, England, August 14 /PRNewswire-FirstCall/ -- Evotec AG reported today results for the first half of 2007.
Highlights:
- Revenues in-line with Evotec's full year expectations
- First proof-of-concept trial with insomnia drug candidate EVT 201 successfully completed
- Accelerated progress of EVT 201 study with elderly patients
- Dynamic execution of corporate strategy through transfer of library synthesis business into joint venture with Indian RSIL (after period end)
- Sustained strong cash position of EUR 72.4 million
Revenues were EUR 28.5 million (2006: EUR 31.0 million). The 8% year-on-year decline is primarily due to a milestone payment from the collaboration with Boehringer Ingelheim recorded in the prior year as well as foreign exchange effects. At constant 2006 currencies and adjusted for the milestone effect revenues would have been approximately on last year's level. Revenues are in-line with Evotec's full year expectations which include sizeable milestone payments in the fourth quarter.
The Group operating result for the first half of 2007 amounted to EUR (22.3) million (2006: EUR (16.6) million). The decline is a result of the reduced revenue and gross profit levels, increasing investments into Evotec's proprietary pipeline (R&D expenses: +9%) and a 15% increase in SG&A expenses. Net loss for the first half of 2007 improved to EUR 9.8 million (2006: EUR 16.1 million) as a result of a non-operating profit from the divestment of Evotec Technologies to PerkinElmer.
In total, cash and cash equivalents at 30 June 2007 amounted to EUR 72.4 million (end of 2006: EUR 78.7 million), now including the cash balances held by Neuro3d.
Corporate Events:
- First proof-of-concept trial with insomnia drug candidate EVT 201 successfully completed
- EVT 201 showed robust and competitive effects on sleep onset and sleep maintenance and was free of any subjective evidence of hang-over
- Full data set to be presented at the worldsleep07 congress in Cairns, Australia, in September 2007
- Results of a second differentiation Phase II study in elderly insomniacs expected for October 2007 - First proof-of-concept study in cognition started with
Alzheimer/pain candidate EVT 101 - Phase I studies for EVT 302 (smoking cessation) progressing as
planned and without significant adverse effect findings - Acquisition of Neuro3d completed effective 1 April 2007
"Achieving first Phase II proof-of-concept with our insomnia drug candidate EVT 201 is a tremendous milestone for the Company. The highly competitive results to date provide us with an excellent basis to progress partnering discussions for further clinical development. A second Phase II study in elderly insomniacs will deliver headline results shortly which we expect will further strengthen EVT 201's differentiating profile and competitive position", said Jorn Aldag, President & Chief Executive Officer of Evotec AG. "Our financial results are in-line with our expectations for the year. We continued to effectively manage our financial resources while advancing our CNS development pipeline and ended the first half of 2007 with a strong cash balance of EUR 72 million."
2007 financial targets confirmed and adjusted for separation of library business into Indian joint venture and currency effects
Evotec confirms its financial targets given in March and May 2007. However, these need to be adjusted for the contribution of the library synthesis business, which will be transferred into a joint venture with RSIL (consolidated at equity), and currency effects. 2006 revenues without library sales amounted to EUR 60.8 million (2006 revenues reported: EUR 67.4 million). Hence, 2007 revenues adjusted for chemical library sales (six months) and currency effects are now expected to be in the range of EUR 62 million to EUR 67 million. This number includes success-based milestone payments which are planned for the end of the year. Including the above revenue effects and the investments in the joint venture and the Combinature assets the revised targeted year-end cash position is between EUR 50 million and EUR 55 million.
Conference Call
Evotec will hold a conference call today at 02.00 p.m. CET (01.00 p.m. GMT/08.00 a.m. US time East Coast) to discuss the financial results as well as progress in first half of 2007. Jorn Aldag, President & CEO, Dr Dirk Ehlers, CFO, Dr John Kemp, Chief Research & Development Officer, and Dr Klaus Maleck, EVP Finance, will lead the call.
Conference Call Numbers (listen only): Europe: +49-(0)69-5007-1305 (Germany) +44-(0)20-7806-1950 (UK) US: +1-718-354-1385 Webcast: http://www.evotec.com
A replay of the conference call will be available for 24 hours and can be accessed in Europe by dialing +49-(0)69-22222-0418 (Germany) or +44-(0)20-7806-1970 (UK) and in the US by +1-718-354-1112. The access code is 5418480#. The on-demand version of the webcast will be available on our website: http://www.evotec.com - Investors - Financial Reports.
Half Year Report 2007 Key figures of consolidated statements of operations according to IFRS Evotec AG and Subsidiaries Euro in thousands except share data and per share data 01-06/ 01-06/ Change 04-06/ 04-06/ Change 2007 2006(*) in % 2007 2006(*) in % Total revenue 28,506 30,985 (8.0) 13,390 15,203 (11.9) Gross margin 22.4% 33.2% 17.1% 28.9% Research and 16,445 15,085 9.0 9,019 6,420 40.5 development expenses Selling, general 10,600 9,213 15.1 5,714 4,205 35.9 and administrative expenses Amortisation of 1,622 1,646 (1.5) 817 830 (1.6) intangible assets Other operating 864 889 (2.8) 426 398 7.0 expenses Other operating 886 - 439 - income Operating result (22,257) (16,557) (34.4) (13,244) (7,456) (77.6) Net income (9,824) (16,059) 38.8 (12,538) (7,232) (73.4) (loss) Weighted 69,755,846 64,639,776 71,414,444 66,520,128 average shares outstanding (basic) Net income (0.14) (0.25) (0.18) (0.11) (loss) per share (*)Excluding contributions from Evotec Technologies. Key figures of consolidated balance sheets according to IFRS Evotec AG and Subsidiaries Euro in thousands 30/06/07 31/12/06 Change in % Cash and cash equivalents 72,366 78,723 (8.1) Net working capital (1,548) (10,606)(*) 85.4 Current and non-current portion of loans and finance lease obligations 9,691 11,906 (18.6) Stockholders' equity 149,196 137,176 8.8 Total assets 187,872 205,526(**) (8.6) (*)Excluding early payments received for Evotec Technologies. (**) Including assets held for sale. Contact: Evotec AG Anne Hennecke SVP, Investor Relations & Corporate Communications Phone: +49-(0)40-56081-286 Fax: +49-(0)40-56081-333 E-Mail: anne.hennecke@evotec.com
Evotec AGCONTACT: Contact: Evotec AG, Anne Hennecke, SVP, Investor Relations &Corporate Communications, Phone: +49-(0)40-56081-286, Fax:+49-(0)40-56081-333, E-Mail: anne.hennecke@evotec.com