Full Press Release Details
information, please contact: Volker Braun, SVP Head of Global Investor Relations & ESG,
volker.braun@evotec.com, T. +49.(0)40.560 81-775, M. +49.(0)151.1940 5058, www.evotec.com
| 4 | NEW AND EXTENDED ALLIANCES underline success of GROWTH STRATEGY |
| 4 | Acquisition expands capabilities and Expertise in cell therapy |
| 4 | Guidance for full-year 2022 refined |
STRONG organic REVENUE GROWTH IN ALL BUSINESS AREAS and adds cGMP cell therapy manufacturing capabilities
| 4 | Group revenues increased by 24% to 336.9 m (H1 2021: 271.3 m) driven by strong demand for its base business; like-for-like revenue growth (excluding fx-effects) of 19% |
| 4 | Continued strong revenue growth momentum: Total EVT Execute (incl. intersegment) revenues up 26% to 351.0 m (H1 2021: 279.5 m); EVT Innovate revenues due to a strong growth in Q2 up 36% to 78.0 m (H1 2021: 57.3 m) |
| 4 | Total non-operating income (expense) of (89.8) m (H1 2021: 106.1 m) explained by the non-cash fair value adjustments of the equity investment in publicly listed Exscientia plc |
| 4 | The net income as of 30 June 2022 amounted to (101.2) m (H1 2021: 112.7 m), as a consequence of the loss from equity investments of 97.7 m for Evotec's 14 m shares in Exscientia plc |
alliances reflect success of growth strategy
| 4 | Several new integrated drug discovery collaborations signed, including INDiGO, CMC and DMPK agreements |
| 4 | New collaborations signed, based on unique, data-driven platforms with Almirall (dermatology), Boehringer Ingelheim (iPSC), Eli Lilly (E.MPD), Janssen (Target AlloMod ) and Sernova (iPSC) |
| 4 | Significant operational and scientific step-up of targeted protein degradation alliance with Bristol Myers Squibb ("BMS") |
| 4 | Further outstanding progress in neuroscience collaboration with BMS |
| 4 | Just - Evotec Biologics: Just -Evotec Biologics is currently in its initial build up phase. Strategic investments into disruptive technology platform show good progress - foundation laid for accelerated growth; Multiple new development and manufacturing agreements, e.g., with Alpine Immune Sciences (after period-end) |
| 4 | Co-owned pipeline projects progressing well: Phase II start of BAY 2395840 (diabetic neuropathic pain), topline data from Phase Ia of EXS21546 (oncology), expansion with JingXin for EVT201 submission for approval in China, German Federal Ministry of Education and Research grant for EVT075 clinical development |
| 4 | Successful expansion of the EVO equity portfolio with new strategic equity stakes in several promising companies such as Centauri, IMIDomics, Sernova and Tubulis |
| 4 | Launch of Aurobac Therapeutics, joint venture with Boehringer Ingelheim and bioM rieux, to create the next generation of antimicrobials along with actionable diagnostics to fight Antimicrobial Resistance |
| 4 | Effective May 2022, Dr Matthias Evers joins Management Board as Chief Business Officer ("CBO"), responsible for business development, digitalisation and strategy | |
| 4 | Signing of definitive agreement to acquire the cell technology company Rigenerand Srl, a leader in the field of cGMP manufacturing of cell therapies, which will operate as Evotec (Modena) Srl | |
| 4 | Annual General Meeting 2022: Approval of all proposed agenda items; Camilla Macapili Languille elected to the Supervisory Board |
Outlook for Full-Year 2022 refined and mid-term targets 2025 Confirmed
| 4 | Group revenues now expected to be in a range of 715 - 735 m versus 700 - 720 m previously (unchanged at 690 - 710 m at constant exchange rates) (2021: 618 m) | |
| 4 | Adjusted Group EBITDA expected to be unchanged in the range of 105 - 120 m (new guidance range at constant exchange rates of 85 - 100 m versus 95 - 110 m previously) (2021: 107 m) | |
| 4 | Unpartnered research and development expenses expected to be in a range of 70 - 80 m (2021: 58 m) | |
| 4 | Mid-term goals target revenue growth to > 1,000 m, adjusted EBITDA of 300 m and unpartnered research and development expenses of > 100 m by 2025 |
The forecast takes in account - as far as possible - the current increased global uncertainties related to e.g. the COVID-19
pandemic and the war in Ukraine, resulting in uncertainty around the global price and supply situation for energy, other raw materials
and supplies as well as logistics relevant to the business.
The following table provides an initial overview of the financial performance
in the first half-year 2022 compared to the same period in 2021. More detailed information can be found from page 7 of this report.
Key figures of unaudited consolidated income statement
& segment information
Evotec SE & subsidiaries - First half-year 2022 / 2021
| In k | Evotec Group H1 2022 | Evotec Group H1 2021 | ||||||
| Revenues 1) | 336,875 | 271,302 | ||||||
| Intersegment revenues | - | - | ||||||
| Costs of revenue | (273,686 | ) | (215,000 | ) | ||||
| Gross profit | 63,189 | 56,302 | ||||||
| Gross margin in % | 18.8 | % | 20.8 | % | ||||
| R&D expenses 2) | (36,838 | ) | (35,434 | ) | ||||
| SG&A expenses | (67,396 | ) | (46,383 | ) | ||||
| Impairment of intangible assets | - | (683 | ) | |||||
| Other operating income (expenses), net | 37,738 | 34,513 | ||||||
| Net operating income (loss) | (3,307 | ) | 8,315 |
1) Adjusted for negative exchange rate effects
of 15.2 m, Group revenues would have amounted to 321.7 m
2) Includes unpartnered R&D expenses of 33.3 m
in H1 2022 (H1 2021: 27.8 m)
3) Before changes in contingent
consideration, 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 six months ended 30 June 2022
| In T | EVT Execute) | EVT Innovate | Intersegment Eliminations | Evotec Group 6M 2022 | ||||||||||||
| Revenues | 350,989 | 78,028 | (92.142 | ) | 336,875 | |||||||||||
| Operating result | 20,110 | (23,417 | ) | - | (3,307 | ) |
Note: In the wake of the Russian invasion of Ukraine,
rising energy prices are significantly affecting Evotec. We have analysed related effects on our operations and results, and we are actively
implementing measures to save energy in order to reduce the impact.
Evotec does not entertain any direct business
relations with Russian companies and is therefore not directly affected on the revenue side.
Signing of further new and extended drug discovery and development
In the first half-year of 2022, Evotec continued
to further expand its operational activities based on its fully integrated R&D platform EVOiR&D and precision medicine
platforms. The Company entered into new partnerships and extended existing alliances across the various stages of drug discovery and development,
| New multi-target alliance with Almirall in the field of medical dermatology. The goal is to research and develop novel therapeutics for serious skin diseases, including immune-mediated inflammation such as atopic dermatitis and non-melanomatous skin cancer such as basal cell carcinoma. Based on Evotec's integrated platforms such as the AI/ML-driven EVO iR&D platform and their multimodality approach, both partners will bring drug targets into the discovery process. Besides other payments, we are eligible to receive success-based milestones of up to 230 m per project, subject to scientific progress in the future. | ||
| 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 its EVO panOmics platform, Evotec aims to identify small molecules to modulate disease phenotypes, and then validate promising underlying targets for potential therapeutic interventions. | ||
| Based on Evotec's unique and extensive kidney disease patient database, Evotec entered into a new drug discovery collaboration with Lilly in the field of metabolic diseases. Under the terms of the three-year partnership, 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. | ||
| Strategic drug discovery collaboration with Janssen Pharmaceutica NV in the field of protein homeostasis. Evotec's innovative Target AlloMod platform will be evaluated to discover first-in-class novel mode of action therapeutic candidates. Besides other payments, Evotec may receive success-based milestones of up to 210 m per project, subject to scientific progress in the future. | ||
| Exclusive strategic partnership with Sernova for iPSC-based beta cell replacement therapy to advance a functional cure' for diabetes. The partnership leverages iPSC-based beta cells from Evotec's QRbeta initiative and will be combined with Sernova's proprietary Cell Pouch , which is the leading implantable and scalable medical device in its class. |
Further progress in neuroscience and oncology collaborations
| Significant step-up of targeted protein degradation alliance with Bristol Myers Squibb, first signed in 2018. Both parties will leverage all of Evotec's proprietary EVO panOmics and EVO panHunter platforms as well as AI/ML-based drug discovery and development platforms in generating a promising pipeline of molecular glue degraders. Based on the number of projects and potential success-based milestones linked to each project, the deal potential could amount to up to $ 5 bn, provided all projects are successful. In addition, we have already received an upfront payment of $ 200 m. | ||
| Furthermore, 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. |
Just - Evotec Biologics: Foundation laid, validation of
new paradigm in biologics manufacturing
| Just-Evotec Biologics is currently in its build up and initial investment phase. Nevertheless multiple newly signed agreements and ongoing discussions underline the strategic potential of Just-Evotec Biologics. After period-end, Just - Evotec Biologics expanded a multi-year partnership with Alpine Immune Sciences ("Alpine") for the development of a commercial process for Alpine's Fc fusion protein ALPN-303, targeting systemic lupus erythematosus ("SLE"). Just - Evotec Biologics will leverage its data-driven technology platform to develop a commercial manufacturing process for ALPN-303. | ||
| Initial investments made for platform expansion in Europe with ground-breaking ceremony of J.POD at Evotec's Campus Curie in Toulouse, France, planned for September 2022. J.POD Toulouse (EU) will play a key role in addressing the need for therapeutic antibodies across multiple indications, including those related to infectious diseases such as COVID-19. | ||
| Evotec will host a Capital Markets Day on 2 November 2022 in Redmond / Seattle to demonstrate its transformative, fully integrated biologics discovery to manufacturing technology platforms. |
Co-owned pipeline projects progressing well
| Bayer initiated a Phase II clinical trial to evaluate the safety and efficacy of BAY2395840 in patients with diabetic neuropathic pain, triggering a 3 m milestone payment to Evotec. | ||
| Exscientia reported top-line data from its Phase I healthy volunteer study of EXS-21546, a highly selective A2a receptor antagonist co-invented and developed through a collaboration between Exscientia and Evotec. | ||
| Evotec is one of three companies receiving a highly competitive grant as part of a new initiative by the German Federal Ministry of Education and Research to support the clinical development of novel therapeutic candidates against COVID-19. Under the 7.5 m grant, Evotec will use GMP material manufactured on its Just - Evotec Biologics manufacturing platform to initiate the clinical development of EVT075, a potentially highly potent immunomodulatory molecule. |
Successful expansion of the EVOequity portfolio with new equity
stakes in several promising companies
Over the first half-year of 2022, Evotec continued
to grow and diversify its EVOequity portfolio with several equity investments into highly promising companies.
| Investment in Centauri Therapeutics Limited's Series A investment round. Centauri is an immunotherapy company focused on the treatment of infectious diseases. | ||
| 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. | ||
| Investment in Tubulis GmbH by participating in the company's Series B financing round. Tubulis, based in Munich, specialises in the development of antibody drug conjugates by leveraging a set of proprietary technology platforms to develop these highly targeted therapeutics against solid tumours. | ||
| Investment in Sernova Corp. in conjunction with the exclusive strategic partnership to develop an implantable iPSC-based beta cell replacement therapy for the treatment of insulin-dependent diabetes. | ||
| Launch of Aurobac Therapeutics SAS, joint venture with Boehringer Ingelheim and bioM rieux to create the next generation of antimicrobials along with actionable diagnostics to fight Antimicrobial Resistance. | ||
| Part of a consortium that launched CARMA FUND I Capital GmbH & Co. KG as a new vehicle for the implementation of promising early-stage life science projects. |
Signing of definitive agreement as of July 1, 2022,
to acquire Rigenerand Srl, now Evotec (Modena) Srl
Evotec added significant capabilities and capacities
for further long-term growth in the field of cell therapy by acquiring Rigenerand Srl, a cell technology company with leading
edge in the field of cGMP manufacturing of cell therapies. Evotec's cell therapy platform EVOcells encompasses the
full end-to-end spectrum of activities from the discovery and development to the manufacturing of off-the-shelf iPSC-based cell therapy
products. With a leading team of cell therapy experts, Evotec (Modena) Srl adds a high-quality cGMP manufacturing site to the EVOcells
platform therefore adding capacity, critical expertise and capabilities to the important scale-up of complex cell-based therapies.
on the Financial Situation and Results
1. Results of operations
Group revenues in the reporting period
went up by 24% or 65.6 m to 336.9 m (H1 2021: 271.3 m). The increase is the continuation
of a trend seen at the beginning of 2022. The substantial rise against the prior-year period is based on a strong performance of all business
areas. Excluding the recognition of positive fx-effects, Group revenues grew by 19% to 321.7 m. Growth of the base business
was 26% from 261.3 m in H1 2021 to 330.1 m in the first six months of 2022. We recognised milestone,
upfront and license payments of 6.8 m (H1 2021: 10.0 m). Just - Evotec Biologics delivered
21.9 m during the six months ended 30 June 2022 (H1 2021: 23.0 m). Growth of the base business
of Just - Evotec Biologics (excluding the recognition of upfront payments from undisclosed partner in H1 2021 of 5.2 m)
was 23% compared to H1 2021.
Geographically, 41% of Evotec's revenues
were generated with European customers, 54% with customers in the USA and 5% with customers in the rest of the world. This compares to
43%, 53% and 4%, respectively, in the same period of the previous year.
The Costs of revenue during the six months
ended 30 June 2022 amounted to 273.7 m (H1 2021: 215.0 m) yielding a gross margin of
18.8% (H1 2021: 20.8%). The increase was attributable to costs related to the strong growth of the overall business and the recognition
of expenses related to expanding our precision medicine platforms as well as our next-generation biologics manufacturing facility in Redmond
(US). Excluding effects related to the capacity build-up at Just - Evotec Biologics, total gross margin amounted to 27.3% vs. 24.6%
during the same period last year. This progress is driven by a significantly improved profitability in the base business as the contribution
from milestones, upfronts and licenses was 2.8 m lower than in the previous year.
Total R&D expenses increased by 1.4 m
or 4% for the six months ended 30 June 2022 to 36.8 m (H1 2021: 35.4 m). The increase
in unpartnered R&D expenses by 19.6% to 33.3 m (H1 2021: 27.8 m) is primarily related
to the strategic expansion of our platform technologies whereas partnered R&D expenses further decreased as planned by 53%
to 3.5 m (H1 2021: 7.6 m).
In comparison to the same period of 2021, SG&A
expenses increased by 21.0 m or 45% to 67.4 m (H1 2021: 46.4 m).
Expanding our number of people to support the overall growth as well as professional fees for consulting services were the main
drivers. Consulting costs were incurred due to the start of SAP implementation in 2022 and to M&A activities. SG&A expenses
also went up due to facility-related expenses which included higher energy costs and also direct depreciation costs and allocated
expenses for maintenance of facilities, predominantly the new J.POD Redmond (US) manufacturing site as well as the
Biopark in Toulouse. Lastly, year-over-year comparison through June is affected from being a publicly listed company in the US since
Other net operating income and expenses
totalled 37.7 m (H1 2021: 34.5 m). The increase mainly resulted from R&D tax credits ( 19.3 m)
mostly in France and Italy. Recharges of Sanofi for ID Lyon amounted to 16.8 m (H1 2021: 18.9 m).
The Total non-operating result of (89.8) m
(H1 2021: 106.1 m) was mainly due to fair value adjustments to Evotec's Exscientia plc equity position in
both periods. Fair value adjustments were positive in the first six months of 2021 after Exscientia closed two financing rounds in H1 2021
prior to its NASDAQ-listing in H2 2021. In H1 2022, Exscientia's ordinary share price dropped by 45% from $ 19.76 at the
end of 2021 to $ 10.89 as of 30 June 2022, which resulted in a non-cash loss from equity investments of 97.7 m.