HAMBURG, Germany--(BUSINESS WIRE)--Evotec AG (Frankfurt Stock Exchange: EVT, TecDAX, ISIN: DE0005664809) today reported financial results and corporate updates for the first quarter of 2017.
FINANCIAL PERFORMANCE: STRONG START - EXCEPTIONAL GROWTH IN REVENUES AND ADJUSTED EBITDA
- Group revenues: 34% increase to EUR 50.2 m (2016: EUR 37.5 m);
EVT Execute revenues up 24% to EUR 47.9 m (2016: EUR 38.6 m);
EVT Innovate revenues up 96% to EUR 12.6 m (2016: EUR 6.4 m)
- Adjusted Group EBITDA increased to EUR 13.2 m (2016: EUR 7.2 m);
Adjusted EBITDA for EVT Execute increased to EUR 12.2 m (2016: EUR 9.6 m);
Adjusted EBITDA for EVT Innovate increased to EUR 1.0 m (2016: EUR (2.4) m)
- R&D expenses up 6% to EUR 4.7 m (2016: EUR 4.4 m);
- Strong strategic liquidity position of EUR 185.0 m
EVT EXECUTE - STRONG OPERATIONAL PERFORMANCE
- Significant progress within ongoing alliances
- New integrated drug discovery agreements, e.g. with Dermira (USA) and Asahi Kasei Pharma (Japan)
- Strong start for Cyprotex PLC with positive contribution to revenue and adjusted EBITDA
EVT INNOVATE - LEADING DRUG DISCOVERY INNOVATION
- Significant first milestone demonstrating pre-clinical proof of concept within diabetes alliance with Sanofi (TargetBCD)
- Initial milestone achievement in multi-target alliance with Bayer in kidney diseases (CureNephron)
- Continuing equity financing activities (e.g. Forge Therapeutics and Eternygen)
CORPORATE
- NOVO A/S new strategic investor in Evotec holding >10%; Nomination for election to Supervisory Board at the AGM (Michael Shalmi, Novo A/S; after period-end)
GUIDANCE 2017 CONFIRMED
1. FINANCIAL PERFORMANCE
STRONG START - EXCEPTIONAL GROWTH IN REVENUES AND ADJUSTED EBITDA
The 2016 and 2017 results are not fully comparable. The difference stems from the acquisition of Cyprotex PLC (“Cyprotex”), effective 14 December 2016. The results from Cyprotex are only included from 14 December 2016 onwards.
In the first quarter of 2017, Evotec’s Group revenues grew to EUR 50.2 m, an increase of 34% compared to the same period of the previous year (2016: EUR 37.5 m). This increase resulted primarily from an increase in base revenues, the contribution from Cyprotex (EUR 6.0 m) and milestone payments. Evotec’s base revenues for the first quarter of 2017 were EUR 44.0 m, an increase of 30% over the same period of the previous year (2016: EUR 33.9 m). Revenues from milestones, upfronts and licences increased to EUR 6.2 m compared to the same period of the previous year (EUR 3.6 m) including predominantly milestones from the collaboration with Bayer and Sanofi. The gross margin amounted to 37.4% in the first three months of 2017 (2016: 33.3%). This significant margin increase over 2016 primarily reflects growth in base revenues, high milestone achievements, improved capacity utilisation as well as favourable foreign exchange rate effects.
In the first quarter of 2017, Evotec’s R&D expenses amounted to EUR 4.7 m (2016: EUR 4.4 m). This increase is in-line with the Company’s strategic plans and primarily results from focused investments in oncology and metabolic projects. Selling, general and administrative (SG&A) expenses increased as expected by 36% in the first quarter of 2017 to EUR 7.3 m (2016: EUR 5.4 m). This increase mainly results from expenses of Cyprotex including moving costs as well as an increased SG&A headcount in response to Company growth.
