Evotec Announces Progress in Neuroscience Collaboration with Bristol Myers Squibb

Rhea-AI Summary

Evotec has announced significant progress in its neuroscience collaboration with Bristol Myers Squibb, earning a $20 million payment as a result of the advancement. The partnership, established in December 2016, aims to discover disease-modifying treatments for neurodegenerative diseases. A target-based programme has now advanced to late pre-clinical development, contributing to an expanding pipeline. The collaboration saw its first success with the in-licensing of EVT8683, now BMS-986419, in September 2021. Following a successful Phase I study, Phase II is set to commence in 2024. In March 2023, the partnership was extended for another 8 years, showcasing their commitment to innovative treatments and patient care.

Positive

• Evotec earned a $20 million payment from Bristol Myers Squibb.
• Target-based programme advanced to late pre-clinical development.
• First in-licensed programme, BMS-986419, showed Phase I success and is set for Phase II in 2024.
• Collaboration extended for another 8 years in March 2023.
• Growing pipeline of programs in neurodegenerative research.

Negative

• No immediate marketable product from advancements mentioned.
• Revenue largely dependent on milestone payments.

Insights

Financial Analyst

The recent milestone payment of $20 million to Evotec reflects significant scientific progress made in their collaboration with Bristol Myers Squibb. This achievement not only validates the efficacy of their joint research efforts but also enhances Evotec's cash flow and financial stability. The payment strengthens Evotec's balance sheet, enabling it to invest further in research and development, which is important for sustaining long-term growth and innovation in the highly competitive biotech industry. Investors should note that such milestone payments are indicators of successful research milestones and can boost shareholder value. Additionally, the progress into late pre-clinical development can be seen as a positive signal that potentially lucrative products are on the horizon.

Medical Research Analyst

Advancing a target-based programme into late pre-clinical development marks a significant step in addressing unmet medical needs in neurodegenerative diseases. This area is particularly challenging due to the complexity of brain disorders and limited treatment options that mainly manage symptoms rather than modify the disease. The collaboration's focus on disease-modifying treatments highlights a strategic effort to develop therapies that could potentially slow down or prevent disease progression. This progress not only underscores the partnership's commitment to innovation but also sets the stage for future clinical trials, which are critical for bringing new therapies to market.

Market Research Analyst

The neuroscience collaboration between Evotec and Bristol Myers Squibb, extended until 2031, is strategically significant. This long-term commitment signals confidence in the partnership's potential to deliver groundbreaking treatments. For investors, the extended partnership reduces project risk and creates a predictable revenue stream from milestone payments and potential royalties from successful drug commercialization. Additionally, the progression of EVT8683 (BMS-986419) into Phase II trials represents a critical stage in drug development. Successfully moving from Phase I to Phase II suggests a favorable safety profile and initial efficacy, which are encouraging indicators for future market potential and revenue generation. Investors should monitor the outcomes of these trials closely as they will heavily influence the financial and clinical success of the partnership.

• Key scientific achievement advances the joint pipeline in the strategic neuroscience partnership with Bristol Myers Squibb and earns a payment of US$ 20 m to Evotec to progress further research

HAMBURG, GERMANY / ACCESSWIRE / June 12, 2024 / Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, ISIN: DE0005664809; NASDAQ:EVO) announced today that the Company has reached important scientific progress within its neuroscience collaboration with Bristol Myers Squibb (NYSE:BMY) triggering a research payment of US$ 20 m to Evotec. A target-based programme progresses into late pre-clinical development, further contributing to the fast-growing and promising pipeline of discovery to clinical-stage programmes in neurodegeneration that the partnership has generated.

Evotec and Bristol Myers Squibb entered their strategic neuroscience collaboration in December 2016 to identify disease-modifying treatments for a broad range of neurodegenerative diseases. Currently approved drugs mainly offer short-term management of the patients' symptoms and there is a significant unmet medical need for therapeutic modalities that slow down or prevent disease progression.

A first programme, EVT8683, was in-licensed by Bristol Myers Squibb in September 2021 as BMS-986419. Following a successful Phase I study Bristol Myers Squibb announced that a Phase II study for BMS-986419 is scheduled to commence in 2024. In March 2023, Bristol Myers Squibb and Evotec extended and expanded this partnership for an additional 8 years.

Dr Cord Dohrmann, Chief Scientific Officer of Evotec, said: "We are excited to further expand our pipeline with another high-potential programme progressing into late pre-clinical development, demonstrating the exceptional productivity of our neuroscience partnership with Bristol Myers Squibb and our shared commitment to innovation and patient care. Together with Bristol Myers Squibb we have been able to advance a growing portfolio of programmes to critical inflection points, bringing us closer to our joint goal of delivering new therapeutic options for patients suffering from devastating neurological disorders."

About Evotec SE
Evotec is a life science company with a unique business model that delivers on its mission to discover and develop highly effective therapeutics and make them available to the patients. The Company's multimodality platform comprises a unique combination of innovative technologies, data and science for the discovery, development, and production of first-in-class and best-in-class pharmaceutical products. Evotec provides high value pipeline co-creating partnerships and solutions to all Top 20 Pharma and over 800 biotechnology companies, academic institutions, as well as other healthcare stakeholders. Evotec has strategic activities in a broad range of currently underserved therapeutic areas, including e.g. neurology, oncology, as well as metabolic and infectious diseases. Within these areas of expertise, Evotec aims to create the world-leading co-owned pipeline for innovative therapeutics and has to-date established a portfolio of more than 200 proprietary and co-owned R&D projects from early discovery to clinical development. Evotec operates globally with more than 5,000 highly qualified people. The Company's sites in Europe and the USA offer highly synergistic technologies and services and operate as complementary clusters of excellence. For additional information please go to www.evotec.com and follow us on X/Twitter @Evotec and LinkedIn.

Forward-looking statements
This announcement contains forward-looking statements concerning future events, including the proposed offering and listing of Evotec's securities. Words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "should," "target," "would" and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding Evotec's expectations for revenues, Group EBITDA and unpartnered R&D expenses. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Evotec at the time these statements were made. No assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Evotec. Evotec expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Evotec's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information, please contact:

Media

Gabriele Hansen
SVP Head of Global Corporate Communications
Gabriele.Hansen@evotec.com

Hinnerk Rohwedder
Director of Global Corporate Communications
Hinnerk.Rohwedder@evotec.com

Investor Relations

Volker Braun
EVP Head of Global Investor Relations & ESG
Volker.Braun@evotec.com

SOURCE: Evotec SE

View the original press release on accesswire.com

FAQ

What progress did Evotec announce in its neuroscience collaboration with Bristol Myers Squibb?

Evotec announced significant scientific progress, earning a $20 million payment, and advancing a target-based programme to late pre-clinical development.

What is the significance of the $20 million payment to Evotec from Bristol Myers Squibb?

The $20 million payment signifies achieved milestones in their neuroscience research collaboration, enabling further research and development.

When did Evotec and Bristol Myers Squibb start their neuroscience collaboration?

The neuroscience collaboration between Evotec and Bristol Myers Squibb began in December 2016.

What is the current status of the EVT8683 programme?

EVT8683, now BMS-986419, completed Phase I successfully and is set to enter Phase II in 2024.

How long is the extended neuroscience collaboration between Evotec and Bristol Myers Squibb?

The collaboration was extended for an additional 8 years in March 2023.