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Evotec AG Reports Results Of The First Nine Months Of 2014

Published: Nov 12, 2014

  • STRONG OPERATIONAL PERFORMANCE, POSITIVE EBITDA
  • UNIQUE STRATEGIC POSITION DESPITE RECENT DIAPEP277® SETBACK
  • IMPORTANT MILESTONES EXPECTED FOR Q4
  • VERY STRONG CASH POSITION

HAMBURG, Germany, Nov. 12, 2014 (GLOBE NEWSWIRE) -- Evotec AG (Frankfurt:EVT) (TecDAX) (ISIN:DE0005664809) today reported financial results and corporate updates for the first nine months of 2014.

Revenues excluding milestones, upfronts and licences in the first nine months of 2014 up 5% compared to the first nine months of 2013; adjusted nine-month 2014 EBITDA positive

--  Group revenues amounted to € 58.9 m (2013: € 60.3m); revenues excluding milestones, upfronts and licences rose by 5%, up 7% at constant 2013 FX rates

--  Positive adjusted EBITDA before contingent considerations of € 0.3 m for the Group and € 9.8 m for EVT Execute

--  Impairment charges of € 8.7 m triggered by termination of DiaPep277®

--  Very strong liquidity position of € 90.3 m despite acquisitions and significant investments to support further growth

--  High and stable equity ratio at 72.8%

EVT Execute

Strong performance in EVT Execute business leads to contract extensions and expansions

--  Expansion of protein production capabilities initiated in US to serve a major US Pharma partner (after period-end)

--  Important initial milestone achieved as part of multi-target alliance with Bayer HealthCare

--  Collaboration expansion with the Jain Foundation

--  Three-year extension and expansion of collaboration with CHDI Foundation to fight Huntington's disease

--  Long-term compound management collaboration with Medicines for Malaria Venture

EVT Innovate

Building a partnered product pipeline comprising more than 40 projects and expanding the EVT Innovate strategy by means of new collaborations with leading German research institutions

--  Phase IIb trial of EVT302 in Alzheimer's disease within Roche alliance progressing according to plan

--  Janssen continues developing the EVT100 series in the field of CNS diseases

--  Successful completion of all safety studies for EVT201 and initiation of late-stage clinical programmes for registration in China

--  Setback with the announcement that Hyperion is terminating its DiaPep277® programme; Evotec will take legal steps

--  Further milestones achieved in TargetAD collaboration

--  Public grants awarded to Evotec to develop new drug candidates to treat multiple sclerosis

--  New collaboration with Fraunhofer IME in joint drug discovery programmes

Upgrading the drug discovery platform, enhancing innovation offering through acquisitions

--  Acquisition of Bionamics GmbH to accelerate 'EVT Innovate' strategy

--  Acquisition of Euprotec adds and expands expertise and capabilities in infectious diseases

Financial guidance for 2014 confirmed; important milestones expected for the remainder of the year

--  High single-digit percentage growth in Group revenues excluding milestones, upfronts and licences

--  R&D expenditure is expected to be in the range of € 10 m to € 14 m

--  Group EBITDA before changes in contingent considerations expected to be positive and at a similar level to 2013 (2013: € 10.4 m)

--  Liquidity is expected to exceed € 90 m at the end of 2014

--  Positive operating cash flow at a similar level to 2013 (2013: € 6.7 m)

1. Operational performance

Revenues excluding milestones, upfronts and licences in the first nine months of 2014 up 5% compared to the first nine months of 2013; adjusted nine-month 2014 EBITDA positive

Evotec's revenues for the first nine months of 2014 amounted to € 58.9 m, a decrease of 2% compared to the same period of the previous year (2013: € 60.3 m). This decrease was primarily due to significantly lower milestone contributions in the first nine months of 2014 compared to the same period of the previous year, when large milestone contributions of € 7.5 m in total from Boehringer Ingelheim and a first milestone from UCB were recorded. Excluding milestones, upfronts and licences, Evotec's revenues for the first nine months of 2014 rose by 5% and were up 7% compared to the same period of the previous year at constant 2013 foreign exchange rates.

EBITDA before changes in contingent consideration amounted to € 0.3 m in the first nine months of 2014 (first nine months of 2013: € 5.9 m). 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. Note: The adjusted EBITDA 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 a positive EBITDA at a similar level to 2013 (before changes in contingent consideration, if any) at the end of 2014.

Revenues from the EVT Execute segment amounted to € 61.5 m in the first nine months of 2014 and included € 13.2 m of intersegment revenues. The EVT Innovate segment generated revenues totalling € 10.6 m. The gross margin in EVT Execute amounted to 24.8% while EVT Innovate generated a gross margin of 32.0%. R&D expenses in the first nine months of 2014 stood at € 0.7 m for the EVT Execute segment. The EVT Innovate segment reported R&D expenses in the amount of € 10.4 m. In the first nine months of 2014, the EBITDA before changes in contingent consideration of the EVT Execute segment amounted to € 9.8 m and the EVT Innovate segment reported an EBITDA before changes in contingent consideration of € (9.5) m.

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