Full Press Release Details
For further 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 | multiple new and extended alliances in all areas | |
| 4 | Paradigm shift in biologics Starting its market entry Strategy | |
| 4 | commercial launch of next-generation multi-omics data analysis platform PanHunter |
Topline Success REFLECTS strong overall demand
| 4 | Group revenues increased by 19% (13% excluding fx-effects) to 510.8 m (9M 2021: 431.0 m), despite significantly lower milestones, upfronts and license payments compared to a very strong comparable basis in 2021 (9M 2022: 8.1 m vs. 36.5 m in 9M 2021); base business at 502.7 m continued to show very strong growth of 27% (9M 2021: 394.5 m). | |
| 4 | Strong progress in both segments: Total EVT Execute revenues (incl. intersegment revenues) up 23% to 526.7 m (9M 2021: 429.8 m); EVT Innovate revenues up 20% to 121.9 m (9M 2021: 101.9 m), against a very high comparable basis. | |
| 4 | Other non-operating result of (119.6) m (9M 2021: 228.8 m), mainly driven by the non-cash fair value adjustments of the equity investment in publicly listed Exscientia plc. | |
| 4 | Adjusted Group EBITDA totalled 44.6 m (9M 2021: 70.1 m); influenced by high expenses for capacity expansion to support the overall growth of Evotec, significantly inflated energy costs as well as lower contribution from milestones, upfronts and licenses, partially offset by positive fx-effects ( 12.4 m); Just - Evotec Biologics is in its planned ramp up phase; Adjusted EBITDA excluding Just - Evotec Biologics at 84.6 m (9M 2021: 74.0 m). |
Platforms FOR HIGHER Probabilities of Success (POS)
| 4 | Multiple new and extended integrated drug discovery and development agreements all along the drug discovery & development value chain (e.g., integrated drug discovery agreement with Viotika, commercial manufacturing with Zogenix, ADME Tox agreements with UCB ) | |
| 4 | Successful achievement of four performance-based milestones within existing partnerships; one IND submission, one preclinical development candidate nomination and one lead optimisation start | |
| 4 | Significant progress within neuroscience collaboration with Bristol Myers Squibb (BMS) | |
| 4 | Expansion of E.MPD molecular patient database into autoimmune diseases through partnership with Hannover Medical School ("MHH") (after period-end) | |
| 4 | Paradigm shift in biologics with Just - Evotec Biologics: Foundation laid for accelerated revenue growth through multiple new development and manufacturing agreements, e.g., with Alpine Immune Sciences; ground-breaking for second new biologics facility J.POD Toulouse, France, on 16 September |
| 4 | J.POD Redmond, Washington (US) joined the U.S. Department of Defense's ("DOD") Advanced Development and Manufacturing network of facilities and wins a first contract worth up to $ 49.9 m; second award with the U.S. Department of Defense ("DOD") granted after period end | |
| 4 | Strategic oncology partnership with Janssen Pharmaceutica NV (after period-end) | |
| 4 | Commercial launch of proprietary next-generation multi-omics data analysis platform PanHunter (after period-end). | |
| 4 | Expansion of BRIDGE LAB150 to include Amgen as a strategic partner (after period-end). |
Outlook for Full-Year 2022 unchanged and mid-term targets 2025 Confirmed
| 4 | Group revenues expected to be in a range of 715 - 735 m or 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, translating into 85 - 100 m at constant exchange rates (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. |
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. M&A related costs have not been part of the initial guidance and will
therefore be excluded.
The following table provides an overview of the financial performance
in the first nine months of 2022 compared to the same period in 2021. More detailed information can be found on page 7 of this interim
Key figures of consolidated income statement &
Evotec SE & subsidiaries - First nine months of 2022
| In T | Evotec Group 9M 2022 | Evotec Group 9M 2021 | ||||||
| Revenues 1) | 510,759 | 430,963 | ||||||
| Intersegment revenues | - | - | ||||||
| Costs of revenues | (419,150 | ) | (331,494 | ) | ||||
| Gross profit | 91,609 | 99,469 | ||||||
| Gross margin in % | 17.9 | 23.1 | ||||||
| R&D expenses 2) | (55,321 | ) | (53,472 | ) | ||||
| SG&A expenses | (109,858 | ) | (71,037 | ) | ||||
| Impairments of intangible assets | - | (683 | ) | |||||
| Other operating income (expenses), net | 56,734 | 51,776 | ||||||
| Net operating income (loss) | (16,836 | ) | 26,053 | |||||
| Adjusted EBITDA 3) | 44,600 | 70,086 |
1) Adjusted for exchange rate effects of 26.1 m,
Group revenues would have amounted to 484.6 m
2) Includes unpartnered R&D expenses of 50.7 m
in 9M 2022 (9M 2021: 42.6 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 nine months ended 30 September 2022
| In T | EVT Execute | EVT Innovate | Intersegment Eliminations | Evotec Group 9M 2022 | ||||||||||||
| Revenues | 526,704 | 121,931 | (137.876 | ) | 510,759 | |||||||||||
| Operating result | 18,251 | (35,087 | ) | - | (16,836 | ) |
Operational Highlights
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.
Multiple new and extended integrated drug discovery and development
In the first nine months of 2022, Evotec showed
a strong operational and scientific performance based on its fully integrated R&D platform. Initiation of 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 have taken place, such as:
| Signing of several new CMC and INDiGO agreements | ||
| Initiation of multiple integrated drug discovery collaboration agreements e.g., with Viotika | ||
| Cyprotec extended and initiated multiple agreements in ADME Tox (e.g., UCB) | ||
| Successful achievement of four performance-based milestones within existing partnerships; one IND submission, one preclinical development candidate nomination and one lead optimisation start |
Paradigm shift in biologics with Just - Evotec Biologics
In September, the construction of the second J.POD
facility, J.POD Toulouse, France (EU) at Evotec's Campus Curie has been initiated. The facility is expected to be
operational in H2 2024. Also, in September, Just - Evotec Biologics' existing facility J.POD Redmond,
Washington (US) joined the U.S. Department of Defense's ("DOD") Advanced Development and Manufacturing network of facilities.
Following a thorough vetting process this led to the signing of a contract worth up to $ 49.9 m for the rapid development of monoclonal
antibody-based drug product prototypes targeting plague. After period-end, Just - Evotec Biologics has been selected for a second
award under the DOD's Accelerating Antibodies Program.
In August, Evotec's Seattle-based subsidiary expanded
a multi-year partnership with Alpine Immune Sciences, leveraging its data-driven technology platform to develop a commercial manufacturing
process for ALPN-303.
Several other projects are currently under negotiation.
Significant progress within neuroscience collaboration with Bristol
In Q3 2022, BMS designated a target-based programme
for further development. The collaboration was initiated in December 2016 with the goal of identifying disease-modifying treatments for
a broad range of neurodegenerative diseases. The collaboration leverages Evotec's industrialised iPSC platform using patient-derived
disease models, which is one of the largest and most sophisticated platforms in the industry. A first programme originating from the collaboration,
EVT8683, was in-licensed by BMS in September 2021, following the successful filing of an IND application with the FDA.
Several important milestone payments are expected
within this alliance in Q4.
Expansion of Evotec's E.MPD molecular database into autoimmune
diseases through partnership with Hannover Medical School ("MHH")
After period-end, Evotec announced a partnership
with Hannover Medical School ("MHH"), one of the leading German universities, to generate a molecular patient database for
Sj gren's syndrome ("SjS") and systemic lupus erythematosus ("SLE"). The strategic partnership between
Evotec and MHH aims at achieving a better disease understanding of SjS and SLE by creating a unique longitudinal PanOmics database from
the analysis of patient material. Biospecimens from several hundred SjS and SLE patients will be collected by MHH and analysed on Evotec's
PanOmics platform, which includes genomics, transcriptomics, proteomics, and metabolomics as well as single-cell sequencing technologies.
Launch of proprietary next-generation multi-omics data analysis
platform PanHunter (after period end)
After period-end, Evotec launched a first commercial
version of its PanOmics data analysis platform PanHunter at Bio-IT World. PanHunter is Evotec's PanOmics data access and analytics
platform and was developed and used successfully internally and in industry-shaping drug discovery partnerships over many years. Evotec
now makes PanHunter available to collaborators and partners as a software-as-a-service ("SaaS") product. PanHunter originates
from Evotec's commitment towards patient-centric, PanOmics-driven drug discovery and is unique in its ability to integrate the analysis
of PanOmics data, designed as an easy-to-user yet fully comprehensive PanOmics data analysis platform.
Expansion of clinical and commercial drug substance manufacturing
capacities through acquisition of Central Glass Germany, now Evotec Drug Substance (Germany) GmbH ("Evotec DS")
On 3 November, Evotec announced that the acquisition
of Central Glass Germany GmbH from the Japanese chemical manufacturing company Central Glass Co. Ltd., signed in August 2022, had been
completed. Through this acquisition, the Company expands its clinical and commercial manufacturing platform for small molecule therapeutics
and enhances and accelerates Evotec's strategy of pursuing integrated discovery and development of new medicines that matter. The
significant reactor capacity and long-standing chemical expertise within Evotec DS provide a high quality, European-based solution to
Evotec's partners for the development and commercialisation of drug substance. Once integrated into Evotec's existing drug
substance development and manufacturing platform, the new site will offer the Company's partners highly flexible product lifecycle
management strategies, particularly in the field of precision medicines and in rare diseases.
Financial Situation and Results
1. Results of operations
During the nine months ended 30 September 2022
Group revenues increased significantly by 19% to 510.8 m compared with the
same period of the previous year (9M 2021: 431.0 m).
The substantial rise against the prior-year period is based on a strong performance of the base business, compensating two effects: Just
- Evotec Biologics is still in its ramp-up phase and revenues from milestones, upfronts and licenses were exceptionally strong last year.
Excluding the recognition of positive fx effects, Group revenues grew by 13% to 487.3 m. Growth of the base business
was 27% from 394.5 m in 9M 2021 to 502.7 m in the first nine months of 2022 (+32%, excluding Just
- Evotec Biologics). Evotec received milestone, upfront and license payments of 8.1 m (9M 2021: 36.5 m).
Biologics contributed 27.9 m during the nine
months ended 30 September 2022 versus 34.7 m in the comparable prior year period.