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Evotec Announces First Half Year 2017 Results and Corporate Update

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EVOTEC AG (Frankfurt Stock Exchange: EVT, TecDAX, ISIN: DE0005664809)
currently reported financial formula and corporate updates for a first
half of 2017.

FINANCIAL PERFORMANCE REFLECTING A STRONG BUSINESS

– Group revenues: 37% boost to EUR 103.4 m (H1 2016: EUR 75.5 m);

EVT Execute revenues adult 26% to EUR 100.4 m (H1 2016: EUR 79.8 m);

EVT Innovate revenues adult 78% to EUR 21.1 m (H1 2016: EUR 11.8 m)

– Adjusted Group EBITDA increasing by 64%to EUR 26.0 m (H1 2016: EUR 15.8
m);

Adjusted EBITDA for EVT Execute adult 26% to EUR 28.4 m (H1 2016: EUR 22.5
m); Adjusted EBITDA for EVT Innovate of EUR (2.4) m (H1 2016: EUR (6.6)
m)

– RD losses somewhat decreased by 5% to EUR 8.5 m (H1 2016: EUR 9.0 m)

– Strong vital liquidity position of EUR 187.0 m (prior to Aptuit
acquisition)

EVT EXECUTE – CONTINUING HIGH-QUALITY STRATEGY GROWTH

– Multiple new and extended integrated drug find agreements, e.g.
with Dermira, Asahi Kasei Pharma, Blackthorn Therapeutics and STORM
Therapeutics (after period-end)

– Significant swell within ongoing alliances (e.g. Bayer fondness in
endometriosis)

– Cyprotex contributing definitely and arrangement on track

EVT INNOVATE – MOMENTUM AND MILESTONES

– Important miracle achievements (e.g. kidney illness fondness with
Bayer, iPSC diabetes fondness with Sanofi)

– Strong concentration on iPSC height by new vital collaborations
with Censo Biotechnologies and Fraunhofer IME-SP (after period-end)

– Unique biobank proceed by NURTuRE consortium in kidney diseases

– BRIDGE indication gaining movement (e.g. dual appropriation rounds in LAB282
projects)

– Grant from IFB Hamburg in immunotherapy/immuno-oncology

CORPORATE

– Novo Holdings A/S new vital financier in Evotec holding 10%

– Change in Evotec’s Supervisory Board: Michael Shalmi joined
Supervisory Board

– Continued vital investments and association arrangement activities (e.g.
Eternygen, Forge Therapeutics, Facio Therapies)

– Acquisition of Aptuit (after period-end)

GUIDANCE 2017 CONFIRMED

– All elements of a financial superintendence absolutely confirmed

1. FINANCIAL PERFORMANCE REFLECTING A STRONG BUSINESS

In a initial half of 2017, Evotec’s Group revenues grew to EUR 103.4 m,
an boost of 37% compared to a same duration of a prior year (H1
2016: EUR 75.5 m). This boost resulted essentially from 3 factors:
a clever opening in a bottom business, a Cyprotex DMPK business
grant (EUR 12.3 m) and increasing miracle payments. Revenues
from milestones, upfronts and licences increasing significantly to EUR
13.3 m compared to a same duration of a prior year (H1 2016: EUR
6.9 m) including essentially milestones from a collaborations with
Bayer in endometriosis and kidney diseases and Sanofi in diabetes. The
aloft miracle achievements also definitely influenced a sum margin,
that increasing to 35.8% in a initial 6 months of 2017 (H1 2016:
34.5%).

The slight diminution of Evotec’s RD losses to EUR 8.5 m (H1 2016: EUR
9.0 m) formula from a reallocation of projects to a Celgene
partnership portfolio, that is recognized in costs of revenue.
Evotec’s selling, ubiquitous and executive (SGA) losses increased
by 34% in a initial half of 2017 to EUR 15.8 m (H1 2016: EUR 11.8 m) and
were especially impacted by Cyprotex administration as good as an increased
SGA headcount (Business enlargement and executive functions) in
response to association enlargement and transaction expenses, e.g. Aptuit.
Adjusted Group EBITDA in a initial half of 2017 increasing by 64% to EUR
26.0 m (H1 2016: EUR 15.8 m). Evotec’s handling income in a first
half of 2017 amounted to EUR 18.2 m (H1 2016: EUR 8.4 m).

Liquidity, that includes money and money equivalents (EUR 87.9 m) and
investments (EUR 99.1 m) amounted to EUR 187.0 m during a finish of Jun 2017
(31 Dec 2016: EUR 126.3 m). This clever boost is especially due to
a collateral boost with Novo Holdings A/S announced in Feb 2017,
since floating loan comforts have been reduced significantly.

Revenues from a EVT Execute shred amounted to EUR 100.4 m in the
initial 6 months of 2017 and significantly increasing compared to the
prior-year duration (H1 2016: EUR 79.8 m). Included in this volume are EUR
18.1 m of intersegment revenues (H1 2016: EUR 16.2 m). This boost is
essentially attributable to a clever opening of a bottom business and
a Cyprotex contribution. The EVT Innovate shred generated revenues
of EUR 21.1 m (H1 2016: EUR 11.8 m), that consisted wholly of
third-party revenues. This boost compared to a prior-year period
especially formula from miracle payments from Bayer and Sanofi as good as
revenues from a Celgene collaboration. Gross domain for EVT Execute
amounted to 29.4% while EVT Innovate generated a sum domain of 46.1%.
RD losses for a EVT Innovate shred amounted to EUR 10.4 m in the
initial half of 2017 (H1 2016: EUR 11.9 m). In a initial half of 2017, the
practiced EBITDA of a EVT Execute shred was clever during EUR 28.4 m and
significantly softened compared to a prior-year duration (H1 2016: EUR
22.5 m). The EVT Innovate shred reported an practiced EBITDA of EUR
(2.4) m (H1 2016: EUR (6.6) m).

2. EVT EXECUTE EVT INNOVATE

EVT EXECUTE – CONTINUING HIGH-QUALITY STRATEGY GROWTH

The clever operational opening of a initial entertain 2017
successfully continued into a second entertain 2017 in a EVT Execute
segment. With EUR 12.3 m income grant in a initial half of 2017,
Cyprotex had a really clever start and a arrangement into a Evotec
Group is move forward of plan. Furthermore, Evotec has been
consolidating a US footprint in a initial half of 2017 to streamline
processes and services.

In serve and among other highlights, Evotec entered mixed new
integrated drug find alliances. In a new multi-year, integrated
drug find partnership with Blackthorn Therapeutics, a concentration is
on delivering best-in-class tiny molecules that allay novel targets
voiced in pivotal mind regions for a law of behavioural
disorders and on eventually selecting a pre-clinical development
candidate. Furthermore, Evotec extended a existent agreement with
STORM Therapeutics shortly after period-end into an integrated alliance
to concentration on new tiny proton epigenetic drugs for oncology and other
diseases.

Furthermore, clever swell was achieved in Evotec’s existing
alliances. In a initial 6 months of 2017, a poignant pre-clinical
miracle was reached in a fondness with Bayer in a domain of
endometriosis. Furthermore, a clinical miracle was reached in this
partnership shortly after period-end for a course of a second
programme from a fondness portfolio into Phase we clinical development.
This fondness has been extended year until 2018.

EVT INNOVATE – MOMENTUM AND MILESTONES

The initial half of 2017 in EVT Innovate was characterised by important
achievements in vital alliances (e.g. milestones in kidney alliance
with Bayer and iPSC diabetes fondness with Sanofi) and an acceleration
of creation opposite several ventures. Strong swell was done within
a vital iPSC-based fondness with Celgene in neurodegeneration.
Evotec continues to deposit into a serve enlargement and enlargement of
a iPSC height and entered into new vital collaborations with
Censo Biotechnologies and Fraunhofer IME-SP (shortly after period-end)
to strengthen a extensive iPSC network. Furthermore, Evotec joined
a NURTuRE (National Unified Renal Translational Research Enterprise)
consortium in kidney diseases, that provides Evotec with entrance to
studious samples including kidney biopsies, blood, serum and urine for an
in-depth histological and molecular research to brand and validate
targets and biomarkers. In addition, Evotec’s BRIDGE indication is also
gaining momentum. This was demonstrated by a successful presentation
of dual rounds of awards in 2017 in a LAB282 BRIDGE fondness with
Oxford University.

3. CORPORATE

CONTINUED STRATEGIC INVESTMENTS AND COMPANY FORMATION ACTIVITIES

Alongside a EVT Innovate strategy, Evotec continues to attend in
vital investments and association formations. By doing so, Evotec
demonstrates a eagerness to accelerate creation also by taking
equity stakes in companies to ideally change risks and rewards. Along
these lines, Evotec serve stretched a attribute with Forge
Therapeutics by participating in Forge’s latest appropriation turn (Series A)
and participated in Facio Therapies’ 2017 appropriation round.

ACQUISITION OF APTUIT (AFTER PERIOD-END)

After period-end on 30 Jul 2017, Evotec announced a definitive
agreement underneath that Evotec will acquire Aptuit, a partner research
organization for integrated outsourced drug find and development
solutions for $ 300 m (approx. EUR 256 m; EUR/$ fx rate of 1.17) in
cash. This merger is financed by a brew of existent cash
pot and an additional new EUR 140 m comparison debt facility. This
transaction will strengthen Evotec’s position as a heading global
actor in a outmost creation marketplace. Furthermore, it grows
Evotec’s business almost and extends a value sequence offering
by to Investigational New Drug (“IND”) acquiescence and over to
integrated drug piece and drug product and blurb manufacture.
The merger will be accretive to Evotec’s revenues, make a
poignant grant to Evotec’s EBITDA and is approaching to tighten in
Q3 2017.

4. GUIDANCE 2017 CONFIRMED

All elements of a financial superintendence are absolutely confirmed.

 

 

 

Guidance
2017

 

 

Actual 2016

Group revenues

More than 15% growth

EUR 164.5 m

Adjusted Group EBITDA1)

Significantly softened compared to 2016

EUR 36.2 m

RD expenses

Approx. EUR 20 m

EUR 18.1 m

1) EBITDA is discernible as gain before interest, taxes, depreciation,
and amortisation of intangibles. EBITDA excludes contingent
considerations, income from discount squeeze and impairments on
goodwill, other unsubstantial and discernible resources as good as a total
non-operating result.

Webcast/Conference Call
The Company is going to reason a conference
call to plead a formula as good as to yield an refurbish on its
performance. The discussion call will be hold in English.

Conference call details
Date: Thursday, 10 Aug 2017
Time:
02.00 pm CEST (01.00 pm BST/08.00 am EDT)

From Germany: +49 69 22 22 29 043
From UK: +44 20 3009 2452
From
USA: +1 855 402 7766
From France: +33 170 750 705
Access Code:
37969784

A coexisting slip display for participants dialling in around phone
is accessible during http://www.audio-webcast.com/,
password: evotec0817.

Webcast details
To join a audio webcast and to entrance the
display slides we will find a couple on a home page www.evotec.com
shortly before a event. A replay of a discussion call will be
accessible 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 a USA by
dialling +1 866 535 8030. The entrance formula is 654573#. The on-demand
chronicle of a webcast will be accessible on a website: https://www.evotec.com/article/en/Investors/Finance/Financial-Reports-2015-2017/188/6/26.

NOTE
The 2016 and 2017 formula are not entirely comparable. The
disproportion stems from a merger of Cyprotex PLC (“Cyprotex”),
effective 14 Dec 2016. The formula from Cyprotex are usually included
from 14 Dec 2016 onwards. The accounting policies used to prepare
a half-year news are a same as those used to ready a audited
combined financial statements for a year finished 31 Dec 2016.

ABOUT EVOTEC AG
Evotec is a drug find fondness and development
partnership association focused on fast surpassing innovative product
approaches with heading curative and biotechnology companies,
academics, studious advocacy groups and try capitalists. We operate
worldwide providing a top peculiarity stand-alone and integrated drug
find solutions, covering all activities from target-to-clinic to
accommodate a industry’s need for creation and potency in drug discovery
(EVT Execute). The Company has determined a singular position by
convention top-class systematic experts and integrating state-of-the-art
technologies as good as estimable knowledge and imagination in key
healing areas including neuroscience, diabetes and complications of
diabetes, pain and inflammation, oncology and spreading diseases. On
this basis, Evotec has built a extended and low tube of some-more than 80
partnered product opportunities during clinical, pre-clinical and discovery
stages (EVT Innovate). Evotec has determined mixed long-term
find alliances with partners including Bayer, CHDI, Sanofi or UCB
and enlargement partnerships with Sanofi in a domain of diabetes, with
Pfizer in a domain of hankie fibrosis and with Celgene in a domain of
neurodegenerative diseases. For additional information greatfully go to www.evotec.com
and follow us on Twitter @EvotecAG.

FORWARD LOOKING STATEMENTS
Information set onward in this press
recover contains forward-looking statements, that engage a series of
risks and uncertainties. The forward-looking statements contained herein
paint a settlement of Evotec as of a date of this press release.
Such forward-looking statements are conjunction promises nor guarantees, but
are theme to a accumulation of risks and uncertainties, many of that are
over a control, and that could means discernible formula to differ
materially from those contemplated in these forward-looking statements.
We specifically dissent any requirement or endeavour to recover publicly
any updates or revisions to any such statements to simulate any change in
a expectations or any change in events, conditions or resources on
that any such matter is based.

First half-year 2017 results

Key sum of combined halt income statement

Evotec AG and subsidiaries

In TEUR solely share information and per share data

 

Jan to

June

Change

Apr to

June

Change

2017

2016

in %

2017

2016

in %

 

Revenues

103,396

75,454

37

53,212

37,975

40

Gross domain in %

35.8

34.5

34.3

35.6

 

Research and enlargement expenses

(8,542)

(9,033)

(5)

(3,891)

(4,647)

(16)

Selling, ubiquitous and executive expenses

(15,790)

(11,757)

34

(8,476)

(6,390)

33

Impairment of unsubstantial assets

(1,417)

Other handling income (expenses), net

5,553

4,592

21

2,660

3,149

(16)

 

Operating result

18,234

8,389

117

8,524

5,645

51

Adjusted Group EBITDA*

26,010

15,833

62

12,777

8,599

49

 

Net income

10,118

2,721

3,234

3,893

 

Weighted normal shares outstanding

143,068,464

132,380,544

146,382,976

132,426,779

Net income (loss) per share (basic and diluted)

0.07

0.02

0.02

0.03

* Before fortuitous considerations, income from discount squeeze and
incompatible impairments on goodwill, other unsubstantial and discernible assets
as good as a sum non-operating result

Segment information:

First 6 months 2017

In TEUR

EVT Execute

EVT Innovate

Intersegment eliminations

Evotec Group

 

External revenues

82,317

21,079

103,396

Intersegment revenues

18,042

(18,042)

Gross domain in %

29.4

46.1

12.0

35.8

 

RD expenses

(342)

(10,368)

2,168

(8,542)

SGA expenses

(12,365)

(3,425)

(15,790)

Impairment of unsubstantial assets

Other handling income (expenses), net

4,420

1,133

(5,553)

 

Operating result

21,173

(2,939)

18,234

Adjusted EBITDA*

28,413

(2,403)

26,010

* Before fortuitous considerations, income from discount squeeze and
incompatible impairments on goodwill, other unsubstantial and discernible assets
as good as a sum non-operating result]

First 6 months 2016

In TEUR

EVT Execute

EVT Innovate

Intersegment eliminations

Evotec Group

 

External revenues

63,623

11,831

75,454

Intersegment revenues

16,189

(16,189)

Gross domain in %

28.8

50.0

18.1

34.5

 

RD expenses

(46)

(11,921)

2,934

(9,033)

SGA expenses

(9,345)

(2,412)

(11,757)

Impairment of unsubstantial assets

(1,417)

(1,417)

Other handling income (expenses), net

3,256

1,336

4,592

 

Operating result

16,882

(8,493)

8,389

Adjusted EBITDA*

22,473

(6,640)

15,833

* Before fortuitous considerations, income from discount squeeze and
incompatible impairments on goodwill, other unsubstantial and discernible assets
as good as a sum non-operating result

Key sum of combined halt matter of financial position

Evotec AG and subsidiaries

In TEUR

30 June

31 Dec

Change

2017

2016

in %

 

Cash, money equivalents and investments

187,049

126,270

48

Working capital

723

(8,822)

Current and non-current loan liabilities

7,815

28,607

(73)

Total stockholders’ equity

314,212

213,936

47

 

Total assets

421,482

351,366

20

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,
Tradegate Exchange

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