10.11.2016
Evotec AG DE0005664809
DGAP-News: EVOTEC AG REPORTS RESULTS OF FIRST NINE MONTHS OF 2016
DGAP-News: Evotec AG / Key word(s): 9-month figures
EVOTEC AG REPORTS RESULTS OF FIRST NINE MONTHS OF 2016
10.11.2016 / 07:30
The issuer is solely responsible for the content of this announcement.
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- STRONG FINANCIALS REFLECT CONTINUED GROWTH TREND
- EXTENSION OF COLLABORATIONS, START OF NEW ALLIANCES AND ACHIEVEMENT OF
MILESTONES
- NEW WAYS OF ACCELERATING INNOVATION EFFICIENCY
Hamburg, Germany, 10 November 2016:
Evotec AG (Frankfurt Stock Exchange: EVT, TecDAX, ISIN: DE0005664809) today
reported financial results and corporate updates for the first nine months
of 2016.
FINANCIAL PERFORMANCE - PROFITABLE AND STRONG GROWTH
- Strong revenue growth in both operating segments:
- EVT Execute revenues up 36% to EUR 126.6 m;
- EVT Innovate revenues up 26% to EUR 17.9 m
- Consolidated Group revenues up 37% to EUR 120.6 m (9M 2015: EUR 88.2
m); base revenues up 30% to EUR 105.0 m
- Adjusted Group EBITDA increased to EUR 30.6 m (9M 2015: EUR 3.4 m)
- R&D expenses of EUR 12.8 m
- Strong liquidity position of EUR 120.0 m despite loan repayments
EVT EXECUTE - STRONG OPERATIONAL PERFORMANCE
- Significant milestone achievements in Bayer, Boehringer Ingelheim and
Padlock collaborations
- Phase I clinical start for the treatment of endometriosis with Bayer
- Extensions of ongoing collaboration, e.g. with Genentech and Janssen
Pharmaceutica NV
- New long-term strategic drug discovery alliances, e.g. with C4X
Discovery, Antibiotic Research UK, UCB
- New compound management partnerships, e.g. with Pierre Fabre and UCB
- New licences enhancing existing drug discovery platform, e.g. with
CRISPR/Cas9 and Trianni
- Proposed acquisition of ADME-Tox and DMPK specialist company Cyprotex
PLC (after period-end)
EVT INNOVATE - NEW PATHS OF ACCELERATING FIRST-IN-CLASS DRUG DISCOVERY
- New multi-target alliance with Bayer in kidney diseases
- First research collaboration under French Academic Bridge with Inserm
in oncology
- Acceleration of TargetNASH programme with Ellersbrook GmbH & Co. KG
- Innovation partnership with ex scientia to develop bispecific small
molecule immuno-oncology therapeutics
- Formation of spin-off company Topas Therapeutics GmbH in the field of
nanoparticle-based therapeutics to treat immunological disorders
- Participation in Series A funding of Carrick Therapeutics
- Establishing of EVT BRIDGE LAB282 partnership with Oxford University,
OSI and OUI (after period-end)
ALL ELEMENTS OF GUIDANCE CONFIRMED - PROFITABILITY GUIDANCE RAISED IN JULY
2016
- Adjusted Group EBITDA (before changes in contingent consideration)
expected to more than double compared to 2015
- All other elements of financial guidance as of 22 March 2016 and
positive outlook confirmed
- Strong initial outlook for 2017
1. FINANCIAL PERFORMANCE
PROFITABLE AND STRONG GROWTH
Evotec's Group revenues for the first nine months of 2016 grew to EUR 120.6
m, an increase of 37% compared to the same period of the previous year (9M
2015: EUR 88.2 m). This increase is due to growth in the core EVT Execute
business, a full nine month contribution of the Sanofi collaboration as
well as significant milestone payments. Excluding milestones, upfronts and
licences, Evotec's base revenues for the first nine months of 2016 were EUR
105.0 m and increased by 30% over the same period of the previous year (9M
2015: EUR 80.7 m). The gross margin in the first nine months of 2016 was
strong at 38.5% and improved over the first nine months of 2015 (9M 2015:
27.2%). The margin increase over 2015 is attributable to the same drivers
as the trend in revenue growth as well as capacity utilisation and
favourable foreign exchange rate effects.
R&D expenses for the first nine months of 2016 decreased by 5% to EUR 12.8
m (9M 2015: EUR 13.5 m) due to successful partnering of EVT Innovate
projects in 2015. Total SG&A expenses for the first nine months of 2016
decreased by 7% to EUR 17.8 m (9M 2015: EUR 19.0 m). SG&A expenses in 2015
included one-time M&A and related costs. Adjusted Group EBITDA in the first
nine months of 2016 increased significantly to EUR 30.6 m (9M 2015: EUR 3.4
m). Evotec's operating result for the first nine months of 2016 amounted to
EUR 20.4 m (9M 2015: EUR 12.3 m).
Liquidity, which includes cash and cash equivalents (EUR 62.4 m) and
investments (EUR 57.6 m) amounted to EUR 120.0 m at the end of September
2016 (31 December 2015: EUR 133.9 m). In Q2 2016, Evotec initiated the
repayment of loans, which was continued in Q3 2016.
Revenues from the EVT Execute segment amounted to EUR 126.6 m in the first
nine months of 2016, an increase of 36% compared to the prior-year period
(9M 2015: EUR 93.4 m). Included in this amount are EUR 23.9 m of
intersegment revenues (9M 2015: EUR 19.5 m). The EVT Innovate segment
generated revenues in the amount of EUR 17.9 m consisting entirely of
third-party revenues (9M 2015: EUR 14.3 m). The increase in revenues
resulted from EVT Innovate projects which were partnered in 2015. Gross
margin for EVT Execute amounted to 32.9% while EVT Innovate generated a
gross margin of 45.6%. R&D expenses for the EVT Innovate segment at EUR
16.3 m in the first nine months of 2016 remained largely unchanged (9M
2015: EUR 16.6 m). Due to growth in the base business, milestone
achievements and three full quarters of the Sanofi contribution, the
adjusted EBITDA of the EVT Execute segment amounted to EUR 41.3 m in the
first nine months of 2016 and increased significantly compared to EUR 16.1
m in the prior-year period. The EVT Innovate segment reported an improved
adjusted EBITDA of EUR (10.7) m (9M 2015: EUR (12.7) m).
2. EVT EXECUTE & EVT INNOVATE
EVT EXECUTE - STRONG OPERATIONAL PERFORMANCE
During the first nine months of 2016, EVT Execute demonstrated a strong
operational performance, shown also by important milestones achievements in
its collaborations with Bayer, Boehringer Ingelheim and Padlock.
Furthermore, Evotec was able to announce the progression of a first
programme from its strategic alliance with Bayer in the field of
endometriosis into Phase I clinical development. In addition, the compound
management business is gaining momentum, underlined by new alliances with
UCB and Pierre Fabre. Various collaborations were extended in the first
nine months of 2016, such as the drug discovery alliances with Genentech
and Janssen Pharmaceutica NV. Additionally, Evotec was able to enter new
drug discovery alliances with C4X Discovery, UCB and Antibiotic Research
UK, the latter underlining the recent trend of an increasing number of non-
governmental organisations and foundations accessing Evotec's drug
discovery platforms.
Consistent with the Company's strategy to offer its clients the most
advanced technological platforms, Evotec continued to expand its drug
discovery platforms, e.g. with a non-exclusive licence to the leading
technology on the market for gene editing (CRISPR-Cas9 licence) and
Trianni's next-generation transgenic technology. Along these lines, Evotec
announced the proposed acquisition of Cyprotex PLC after period-end, which
would add world-leading high-quality ADME-Tox services and strengthen
Evotec's leadership in drug discovery. This proposed acquisition, which has
been unanimously recommended by the board of Cyprotex, is expected to close
before year-end 2016.
EVT INNOVATE - NEW PATHS OF ACCELERATING FIRST-IN-CLASS DRUG DISCOVERY
The EVT Innovate portfolio continued to make very good scientific and
commercial progress in the third quarter of 2016, resulting in a very
strong performance of the segment. EVT Innovate again demonstrated its
ability to partner promising early-stage scientific approaches with Pharma
companies with the start of a five-year, multi-target alliance with Bayer
in the field of kidney diseases based on assets from its CureNephron
portfolio. Furthermore, the Company entered into its first research
collaboration under its French Academic Bridge with Inserm in the field of
oncology. In addition, EVT Innovate is accelerating its TargetNASH
programme together with Ellersbrook GmbH & Co. KG, with both partners
committed to investing up to EUR 5 m over an initial three-year period. An
innovation partnership with ex scientia (UK) to develop bispecific small
molecule immuno-oncology therapeutics was formed.
In March 2016, Evotec announced the formation of a spin-off company called
Topas Therapeutics GmbH, focused in the field of nanoparticle-based
therapeutics to treat autoimmune diseases. The establishment of Topas is
the first example of the acceleration of Evotec's business model to take
advantage of carving out or investing in promising programmes with
additional upside potential. In addition, Evotec announced an investment of
up to $ 6 m towards Carrick Therapeutics' latest $ 95 m funding round,
thereby deepening its already existing relationship with Carrick.
EVT Innovate is also pursuing new approaches in scouting new innovations
and accelerating them along the drug discovery value chain. After period-
end, Evotec announced a highly innovative strategic partnership called
"LAB282" with the University of Oxford, Oxford University Innovation Ltd
and Oxford Sciences Innovation aimed at accelerating the translation of
basic biomedical research from Oxford into new clinical therapeutics. These
efforts, referred to as "EVT BRIDGE", are focused on highly capital
efficient translation of academic science into potentially transformative
pharmaceutical projects.
3. ALL ELEMENTS OF GUIDANCE CONFIRMED
PROFITABILITY GUIDANCE RAISED IN JULY 2016
Evotec's financial guidance was last updated in July 2016 due to an
increased margin contribution and a positive outlook for the remainder of
the year.
Guidance July Original Guidance Actual 2015
2016 2016
Group revenues1) More than 15% More than 15% growth EUR 115.4 m
growth
Adjusted Group More than Positive and EUR 8.7 m
EBITDA2) double significantly
improved compared to
prior year
R&D expenses Approx. EUR 20 Approx. EUR 20 m EUR 18.3 m
m
Liquidity3) Similar level Similar level EUR 134.5 m
compared to compared to 2015
2015
Capex investments Up to EUR 10 m Up to EUR 10 m EUR 11.2 m
1) Excluding milestones, upfronts and licences
2) Before contingent considerations, income from bargain purchase and
excluding impairments on goodwill, other intangible and tangible assets as
well as the total non-operating result
3) Excluding any potential cash outflow for M&A or similar transactions
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. The conference call will
be held in English.
Conference call details
Date: Thursday, 10 November 2016
Time: 02.00 pm CET (01.00 pm GMT/08.00 am EST)
From Germany: +49 (0) 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 simultaneous slide presentation for participants dialling in via phone is
available at http://www.audio-webcast.com/, password: evotec1116.
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 dialling +49 (0) 69 22 22 33 985 (Germany) or +44 20
3426 2807 (UK) and in the US by dialling +1 866 535 8030. The access code
is 654573#. The on-demand version of the webcast will be available on our
website: https://www.evotec.com/article/en/Investors/Financial-
Reports-2014-2016/188/6.
NOTE
Due to two acquisitions in 2015, the interim condensed consolidated
financial statements for the first six months of 2015 and 2016 are not
fully comparable. The difference stems from the acquisition of Evotec
(France) SAS, effective 01 April 2015, and from the 51% acquired shares in
Panion Ltd., London, UK, effective 09 December 2015. While the result of
Evotec (France) SAS is fully included in the accompanying consolidated
income statement for the first nine months of 2016, it was only partially
included in the comparable period of the previous year. Panion Ltd. was not
included in the comparable period of the previous year.
CHANGE IN PRESENTATION
The presented financial statements include a change in presentation in the
first nine months of 2015 and 2016. From 01 January 2016 onwards,
amortisation of intangible assets are no longer presented in a separate
line in the consolidated income statement but are allocated to the relating
cost lines in the income statement. The prior-year period was changed
accordingly resulting in higher costs of revenue (EUR 2.2 m).
ABOUT EVOTEC AG
Evotec is a drug discovery alliance and development partnership company
focused on rapidly progressing innovative product approaches with leading
pharmaceutical and biotechnology companies, academics, patient advocacy
groups and venture capitalists. We operate worldwide providing the highest
quality stand-alone and integrated drug discovery solutions, covering all
activities from target-to-clinic to meet the industry's need for innovation
and efficiency in drug discovery (EVT Execute). The Company has established
a unique position by assembling top-class scientific experts and
integrating state-of-the-art technologies as well as substantial experience
and expertise in key therapeutic areas including neuroscience, diabetes and
complications of diabetes, pain and inflammation, oncology and infectious
diseases. On this basis, Evotec has built a broad and deep pipeline of more
than 70 partnered product opportunities at clinical, pre-clinical and
discovery stages (EVT Innovate). Evotec has established multiple long-term
discovery alliances with partners including Bayer, CHDI, Sanofi or UCB and
development partnerships with e.g. Janssen Pharmaceuticals in the field of
Alzheimer's disease, with Sanofi in the field of diabetes and with Pfizer
in the field of tissue fibrosis. For additional information please go to
www.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 press release. 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.
Results for the first nine months 2016
Key figures of interim consolidated income statement
Evotec AG and subsidiaries
In TEUR except share data and per share data
January September Chan- July to September Chan-
to ge ge
2016 2015 in % 2016 2015 in %
Revenues 120,627 88,198 37 45,173 33,240 35.9
Gross margin in % 38.5 27.2 45.1 29.2
Research and
development
expenses (12,798) (13,501) (5) (3,765) (4,995) (25)
Selling, general
and
administrative
expenses (17,763) (19,047) (7) (6,006) (6,661) (10)
Impairment of
intangible assets (1,417) (69) - -
Income from
bargain purchase - 18,476 - -
Other operating
income
(expenses), net 5,961 2,430 1,369 1,325 3
Operating result 20,376 12,285 66 11,987 (637)
Adjusted EBITDA* 30,639 3,410 14,806 2,615
Net income (loss) 11,384 10,669 7 8,663 (2,886)
Weighted average
shares
outstanding 132,442,175 131,470,115 132,564,098 131,545,273
Net income (loss)
per share (basic
and diluted) 0.09 0.08 0.07 (0.02)
* EBITDA was adjusted for changes in contingent considerations as well as
for one-time effects with regards to the bargain purchase resulting from
the acquisition of Evotec (France) SAS in 2015.
Segment information:
First nine months 2016
In TEUR
EVT Execute EVT Innovate Intersegment Evotec Group
eliminations
Revenues 126,567 17,971 (23,911) 120,627
Gross margin
in % 32.9 45.6 14.7 38.5
R&D expenses (53) (16,250) 3,505 (12,798)
SG&A expenses (13,855) (3,908) - (17,763)
Impairment of
intangible
assets - (1,417) - (1,417)
Other operating
income
(expenses), net 5,324 637 - 5,961
Operating
result 33,112 (12,736) - 20,376
Adjusted
EBITDA* 41,300 (10,661) - 30,639
* EBITDA was adjusted for changes in contingent considerations
First nine months 2015
In TEUR
EVT EVT Intersegment Not Evotec
Execute Innovate eliminations allocated Group
Revenues 93,384 14,269 (19,455) - 88,198
Gross margin
in % 21.3 51.5 16.9 - 27.2
R&D expenses (166) (16,617) 3,282 - (13,501)
SG&A
expenses (14,322) (4,725) - - (19,047)
Impairment
of
intangible
assets - (69) - - (69)
Income from
bargain
purchase - - - 18,476 18,476
Other
operating
income
(expenses),
net 1,795 635 - - 2,430
Operating
result 7,241 (13,432) - 18,476 12,285
Adjusted
EBITDA* 16,129 (12,719) - - 3,410
* Group EBITDA was adjusted for changes in contingent considerations as
well as for one-time effects with regards to the bargain purchase resulting
from the acquisition Evotec (France) SAS in 2015.
Key figures of interim consolidated statement of financial position
Evotec AG and subsidiaries
In TEUR
30 September 31 Dec Change
2016 2015 in %
Cash, cash equivalents and
investments 120,043 133,940 (10)
Working capital 4,400 (9,187)
Current and non-current loan
liabilities 14,801 22,943 (35)
Total stockholders' equity 193,824 187,094 4
Total assets 276,174 288,538 (4)
Contact Evotec AG:
Gabriele Hansen, VP Corporate Communications & Investor Relations, Phone:
+49.(0)40.56081-255, [email protected]
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10.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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: [email protected]
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
End of News DGAP News Service
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