Full Press Release Details
further information, please contact: Volker Braun, SVP Global Head of Investor Relations & ESG,
volker.braun@evotec.com, T. +49.(0)40.560 81-775, M. +49.(0)151.1940 5058, www.evotec.com
| Strong performance leads to SIGNIFICANT revenue growth | |
| Strong momentum in all BUSINESS areas | |
| New partnerships BASED on Data-driven precision medicine PLATFORMs | |
| GUIDANCE for full-year 2022 confirmed |
revenue growth in all business areas fuelled by ONGOING Expansion and strengthens Positive Development
| Group revenues increased by 24% to 164.7 m (Q1 2021: 133.1 m); like-for-like base revenue growth (excluding fx effects) up 19% | |
| Revenues from milestones, upfronts and licenses of 4.5 m above last year (Q1 2021: 4.4 m) | |
| Strong progress in both segments: Total EVT Execute revenues up 27% to 174.5 m (Q1 2021: 136.9 m); EVT Innovate revenues also up 27% to 35.9 m (Q1 2021: 28.2 m) | |
| Net income of (73.2) m (Q1 2021: 52.7 m), mainly due to the fair value adjustment to Evotec's stake in Exscientia plc. | |
| Adjusted Group EBITDA of 18.9 m (Q1 2021: 21.1 m) primarily driven by capacity expansions at all sites, in particular the continued ramp-up of our J.POD Redmond (US) facility, an increase in unpartnered R&D (up 12%), partially offset by positive currency effects |
the pace with precision medicine platforms
| New data-driven drug discovery collaboration with Eli Lilly and Company ("Lilly") in metabolic diseases | |
| Drug discovery partnership with Boehringer Ingelheim in ophthalmology based on induced pluripotent stem cells ("iPSCs") | |
| Launch of Evotec's translational molecular patient database E.MPD, one of the largest and highest quality molecular databases globally | |
| Further strong progress in neuroscience and oncology collaboration with Bristol Myers Squibb ("BMS") | |
| Strong growth momentum in all areas e.g., new INDiGO agreements, CMC, screening and sample management alliances as well as several new integrated drug discovery & development alliances | |
| Grant from BMBF to support clinical development of EVT075 in viral indications | |
| Bayer initiated Phase II of bradykinin receptor B1 BAY 2395840 in diabetic neuropathic pain but also terminated further development of P2X3 antagonist eliapixant | |
| Expansion of licensing agreement with JingXin for EVT201, submission of regulatory approval in China through JingXin (after period-end) | |
| Successful expansion of the EVO equity portfolio with new equity stakes in several highly promising companies (e.g. Tubulis; after period-end) |
Matthias Evers joins Evotec as Chief Business Officer (after period-end)
Outlook for Full-Year 2022 Confirmed
takes in account - as far as possible - the current global uncertainties related to the COVID-19 pandemic and the Russian
invasion of Ukraine.
The following table provides an overview
of the financial performance in the first quarter of 2022 compared to the same period in 2021. More detailed information can be found
on page 11 of this interim statement.
Key figures of consolidated income
statement & segment information
Evotec SE & subsidiaries - First three months of 2022
| In T | Evotec Group Q1 2022 | Evotec Group Q1 2021 | ||||||
| External revenues 1) | 164,672 | 133,085 | ||||||
| Costs of revenues | (132,378 | ) | (102,406 | ) | ||||
| Gross profit | 32,294 | 30,679 | ||||||
| Gross margin in % | 19.6 | 23.1 | ||||||
| R&D expenses 2) | (18,113 | ) | (18,460 | ) | ||||
| SG&A expenses | (31,566 | ) | (21,194 | ) | ||||
| Impairments of intangible assets and goodwill | - | - | ||||||
| Other operating income (expenses), net | 17,848 | 15,753 | ||||||
| Operating result | 463 | 6,778 | ||||||
| Adjusted EBITDA 3) | 18,862 | 21,105 |
1) Adjusted for exchange
rate effects, Group revenues amount to 158.9 m
2) Of which unpartnered
R&D expenses of 16.6 m in Q1 2022 (Q1 2021: 14.9 m)
3) Before changes in
contingent considerations, income from bargain purchase and excluding impairments on goodwill, other intangible and tangible assets
as well as the total non-operating result
The following table details Evotec's
segment revenues and operating income (loss) for the three months ended 31 March 2022
| In T | EVT Execute | EVT Innovate | Intersegment Eliminations | Evotec Group 3M 2022 | ||||||||||||
| Revenues | 174,539 | 35,901 | (45.768 | ) | 164,672 | |||||||||||
| Operating result | 14,963 | (14,500 | ) | - | 463 |
the wake of the Russian invasion of Ukraine, rising energy prices are affecting Evotec. The likely development of this cost increase
is reflected in our guidance, and we are actively implementing measures to save energy in order to reduce the impact.
of material procurement, a very small portion of compounds used in our screening activities comes from Ukraine. We are in the process
of identifying other sources for these materials.
not entertain any direct business relations with Russian companies and is therefore not directly affected on the revenue side.
New data-driven drug discovery
collaboration with Lilly in metabolic diseases
unique and extensive kidney disease patient database, Evotec entered a new drug discovery collaboration with Lilly in the field of metabolic
diseases. Under the partnership's three-year term, Evotec and Lilly aim to discover potential drug candidates for the treatment
of diabetes and chronic kidney diseases from targets identified by Lilly or by Evotec.
New iPSC-based drug discovery
partnership with Boehringer Ingelheim in ophthalmology
into a new target and drug discovery partnership with Boehringer Ingelheim, focusing on iPSC-based disease modelling for ophthalmologic
disorders. Through phenotypic screening of human iPSC-derived cells, supported by Evotec's EVOpanOmics platform,
Evotec will identify small molecules able to modulate disease phenotypes, and then validate promising underlying targets for potential
therapeutic interventions.
Launch of Evotec's translational
molecular patient database E.MPD
power of molecular data, Evotec launched E.MPD, one of the largest and highest quality molecular databases globally. With E.MPD, Evotec
integrates another key offering into its data-driven R&D Autobahn to Cures. E.MPD is intended to serve as the backbone for data-driven
partnerships that will lead to innovative new medicines, better patient stratification, and potentially pave the way towards a new paradigm
of more effective diagnostic and preventative healthcare. Furthermore, Evotec expanded E.MPD in the field of kidney diseases with a focus
on nephrotic syndrome through a collaboration with the University of Bristol.
Several new and extended drug
discovery and development agreements
months of 2022, Evotec delivered a strong operational performance based on its fully integrated R&D platform EVOiR&D.
The company initiated several new partnerships in addition to the extension of existing alliances across the various stages of drug discovery
and development, as well as across modalities and business areas.
Strategic decisions from Evotec-partner
Bayer affecting co-owned pipeline
of February of 2022, Bayer informed Evotec about its decision to discontinue the development of the investigational P2X3 receptor
antagonist eliapixant (BAY1817080). As a consequence of Bayer's decision, Evotec regained the rights to all P2X3 assets. The Company
continues to evaluate the underlying data and all options, available with this asset.
2022, Bayer progressed another promising small molecule from the Evotec-Bayer multi-target research alliance. Bayer initiated a Phase
II clinical trial to evaluate the safety and efficacy of BAY 2395840 in patients with diabetic neuropathic pain, triggering a
3 m milestone payment.
Further progress in neuroscience
and oncology collaborations with BMS
After BMS progressed
its first programme from the neuroscience collaboration, EVT8683, into clinical development in late 2021, Evotec and BMS expanded their
neurodegeneration collaboration in early 2022. Under the expansion, BMS increases its access to a novel targeted protein degradation
approach with a focus on selected targets that are relevant to a range of neurodegenerative conditions. The ongoing targeted protein
degradation collaboration is progressing with noteworthy scientific success and outstanding efficiency.
Successful expansion of the EVOequity
portfolio with new equity stakes in several highly promising companies
Over the first three months of 2022,
Evotec continued to grow and diversify its EVOequity portfolio of strategic equity stakes with several investments into
highly promising companies. Evotec made an equity investment in IMIDomics, Inc., a privately held global biotechnology company focused
on the discovery and development of new targets and medicines for the treatment of patients with immune-mediated inflammatory diseases.
Further, Evotec invested in Centauri Therapeutics Limited's Series A investment round. Centauri is an immunotherapy company
focused on the treatment of infectious diseases.
on the Financial Situation and Results
1. Results of operations
in the reporting period increased by 24% or 31.6 m to 164.7 m (Q1 2021: 133.1 m).
This increase demonstrates strong performance across all areas despite macro-economic headwinds and a slowdown of biotech funding. At
constant fx rates, Group revenues would have grown by 19% to 158.9 m. Growth of the base business at constant fx rates reached
20%. Milestone, upfront and license revenues of 4.5 m were recognized, primarily from our collaborations with Bayer
and Lilly (Q1 2021: 4.7m). Just - Evotec Biologics (US) contributed 12.4 m during the three months
ended 31 March 2022 versus 12.3 m in the comparable prior year period.
revenue recognized during the three months ended 31 March 2022 amounted to 132.4 m (Q1 2021: 102.4 m)
yielding a gross margin of 19.6% (Q1 2021: 23.1%). The increase of Costs of revenue was primarily attributable to the strong growth
of the overall business and the recognition of expenses related to expanding our precision medicine platforms as well as the capacities
of Just - Evotec Biologics (US). On a comparable basis, the underlying earnings quality has improved significantly. Total
gross margin excluding Just - Evotec Biologics (US) would have reached 27% vs. 23% during the same period last year.
were 18.1 m, compared to 18.5 m in the three months ended 31 March 2021 (a decrease of 2%).
The increase in unpartnered R&D expenses by 11.4% ( 16.6 m vs. Q1 2021: 14.9 m) primarily
reflects the overall growth activities of Evotec whereas partnered R&D expenses decreased by 58% to 1.5 m
for the three months ended 31 March 2022 amounted to 31.6 m, 10.4 m or 49% higher compared
to last year (Q1 2021: 21.2 m). The increase was primarily attributable to the recruitment of personnel to support
the business growth. Capacity expansion resulted in higher depreciation of facilities, in particular related to the new J.POD
Redmond (US) facility. Rising energy prices as a result of the Russian invasion of Ukraine began to have an effect at the end of
Q1 2022. Furthermore, we recognised recurring costs related to our US listing, which did not affect the first three quarters of 2021.