Evotec SE Reports 9M 2024 Results: Strategic Progress and Successful Expansion Amid Challenging Market Conditions
Evotec SE reported its Q3 2024 financial results, showing mixed performance. Group revenues decreased by 1% to €575.7m, with Total Shared R&D revenues declining 12% to €447.1m due to challenging market conditions. However, Just - Evotec Biologics segment showed strong growth of 74% YoY, contributing €128.7m. The company reported adjusted Group EBITDA of €(6.0)m compared to €50.2m in 9M 2023.
Notable developments include extended partnerships with Bristol Myers Squibb, Sandoz, and Novo Nordisk, plus a new collaboration with Pfizer. The company's Priority Reset program is on track to deliver €40m in annual EBITDA improvements. Evotec maintains its 2024 guidance with revenue expected at €790-820m and adjusted EBITDA at €15-35m.
Evotec SE ha riportato i risultati finanziari del terzo trimestre 2024, mostrando una performance mista. I ricavi di gruppo sono diminuiti dell'1% a €575,7 milioni, con i ricavi totali condivisi per R&S che sono scesi del 12% a €447,1 milioni a causa delle difficili condizioni di mercato. Tuttavia, il segmento Just - Evotec Biologics ha mostrato una forte crescita del 74% su base annua, contribuendo con €128,7 milioni. L'azienda ha riportato un EBITDA rettificato di gruppo di €(6,0) milioni rispetto a €50,2 milioni nei primi nove mesi del 2023.
Tra gli sviluppi significativi ci sono le partnership estese con Bristol Myers Squibb, Sandoz e Novo Nordisk, oltre a una nuova collaborazione con Pfizer. Il programma Priority Reset dell'azienda è diretto a generare €40 milioni di miglioramenti annuali dell'EBITDA. Evotec mantiene la sua previsione per il 2024, con ricavi attesi tra €790 milioni e €820 milioni e un EBITDA rettificato tra €15 milioni e €35 milioni.
Evotec SE reportó sus resultados financieros del tercer trimestre de 2024, mostrando un desempeño mixto. Los ingresos del grupo disminuyeron un 1% a €575,7 millones, con los ingresos totales compartidos por I+D cayendo un 12% a €447,1 millones debido a las desafiantes condiciones del mercado. Sin embargo, el segmento Just - Evotec Biologics mostró un fuerte crecimiento del 74% interanual, contribuyendo con €128,7 millones. La compañía reportó un EBITDA ajustado del grupo de €(6,0) millones en comparación con €50,2 millones en los primeros nueve meses de 2023.
Desarrollos notables incluyen asociaciones ampliadas con Bristol Myers Squibb, Sandoz y Novo Nordisk, además de una nueva colaboración con Pfizer. El programa Priority Reset de la compañía está en camino de entregar mejoras anuales de EBITDA por €40 millones. Evotec mantiene su guía para 2024, con ingresos esperados entre €790 millones y €820 millones y un EBITDA ajustado entre €15 millones y €35 millones.
Evotec SE는 2024년 3분기 재무 결과를 발표하며 혼합된 성과를 보였습니다. 그룹 수익은 1% 감소한 €575.7백만으로, 총 공유 R&D 수익은 12% 감소한 €447.1백만으로 어려운 시장 상황이 반영되었습니다. 그러나 Just - Evotec Biologics 부문은 전년 대비 74%의 강력한 성장을 보이며 €128.7백만을 기여했습니다. 이 회사는 2023년 9개월 동안 €50.2백만에 비해 조정된 그룹 EBITDA가 €(6.0)백만으로 보고했습니다.
주요 발전 사항으로는 Bristol Myers Squibb, Sandoz, Novo Nordisk와의 파트너십 연장과 Pfizer와의 새로운 협업이 포함됩니다. 회사의 Priority Reset 프로그램은 연간 €40백만의 EBITDA 개선을 달성할 예정입니다. Evotec는 2024년 가이드를 유지하며, 수익은 €790백만에서 €820백만으로, 조정된 EBITDA는 €15백만에서 €35백만으로 예상합니다.
Evotec SE a publié ses résultats financiers du troisième trimestre 2024, montrant une performance mixte. Le chiffre d'affaires du groupe a diminué de 1 % pour atteindre 575,7 millions €, avec un chiffre d'affaires total partagé pour la R&D en baisse de 12 % à 447,1 millions € en raison de conditions de marché difficiles. Cependant, le segment Just - Evotec Biologics a montré une forte croissance de 74 % d'une année sur l'autre, contribuant à hauteur de 128,7 millions €. L'entreprise a déclaré un EBITDA ajusté du groupe de (6,0) millions € par rapport à 50,2 millions € sur les neuf premiers mois de 2023.
Les développements notables comprennent des partenariats élargis avec Bristol Myers Squibb, Sandoz et Novo Nordisk, ainsi qu'une nouvelle collaboration avec Pfizer. Le programme Priority Reset de l'entreprise est sur la bonne voie pour générer des améliorations annuelles de l'EBITDA de 40 millions €. Evotec maintient ses prévisions pour 2024, avec des revenus attendus entre 790 millions et 820 millions € et un EBITDA ajusté entre 15 millions et 35 millions €.
Evotec SE hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht und dabei eine gemischte Leistung gezeigt. Der Gruppenumsatz sank um 1% auf 575,7 Millionen €; die gesamten gemeinsamen F&E-Umsätze sanken aufgrund herausfordernder Marktbedingungen um 12% auf 447,1 Millionen €. Der Just - Evotec Biologics Bereich hingegen verzeichnete ein starkes Wachstum von 74% im Jahresvergleich und trug mit 128,7 Millionen € bei. Das Unternehmen meldete ein bereinigtes Gruppen-EBITDA von (6,0) Millionen € im Vergleich zu 50,2 Millionen € in den ersten neun Monaten 2023.
Zu den bemerkenswerten Entwicklungen gehören erweiterte Partnerschaften mit Bristol Myers Squibb, Sandoz und Novo Nordisk sowie eine neue Zusammenarbeit mit Pfizer. Das Priority Reset Programm des Unternehmens ist auf dem Weg, jährliche EBITDA-Verbesserungen in Höhe von 40 Millionen € zu liefern. Evotec hält an seiner Prognose für 2024 fest, mit einem Umsatz von 790 bis 820 Millionen € und einem bereinigten EBITDA von 15 bis 35 Millionen €.
- Just - Evotec Biologics segment revenue grew 74% YoY to €128.7m
- Received US$75m in payments from Bristol Myers Squibb partnership
- Successfully opened new J.POD biologics facility in Toulouse
- Priority Reset program to deliver €40m annual EBITDA improvement
- Secured new partnerships with Pfizer and extended collaborations with BMS, Sandoz, and Novo Nordisk
- Group revenues declined 1% to €575.7m
- Shared R&D revenues decreased 12% to €447.1m
- Adjusted Group EBITDA dropped to €(6.0)m from €50.2m in previous year
- One-off costs of €62.3m related to Priority Reset measures
- Reduced 2024 adjusted EBITDA guidance to €15-35m (vs €66.4m in 2023)
Insights
Evotec's Q3 results reveal mixed performance with concerning trends. Revenue declined marginally by
The company's transformation efforts through Priority Reset aim to deliver
The guidance confirmation, while positive, reflects modest growth expectations and significantly lower profitability compared to 2023. The market challenges and cost-base misalignment require careful monitoring.
The expansion of Just-Evotec Biologics and the new J.POD facility in Toulouse represent significant strategic positioning in the growing biologics market. The segment's
However, the core Shared R&D segment's decline is concerning, as it traditionally drives innovation and long-term value. The new collaborations in protein degradation and cell therapies show promise but may take time to materialize into substantial revenue streams. The strategic pivot toward biologics manufacturing could help stabilize revenues but might impact the company's historical focus on innovative drug discovery.
Guidance for 2024 confirmed with full-year 2024 revenue and adjusted EBITDA targets on track, despite challenging market conditions
Robust growth of Just - Evotec Biologics driven by roll out of projects together with Sandoz and progress of discovery partnerships
Successful extensions & expansions with BMS and Novo Nordisk; new collaboration with Pfizer to advance cutting-edge therapeutic solutions
Priority reset on track to deliver annualised adj. EBITDA improvement of over € 40 m and strategic review initiated
HAMBURG, GERMANY / ACCESSWIRE / November 6, 2024 / Evotec SE (Frankfurt Stock Exchange:EVT)(MDAX/TecDAX, ISIN: DE0005664809)(NASDAQ:EVO) today announced its financial results and corporate updates for the third quarter of 2024, highlighting strategic progress across key partnerships and operations.
Dr Christian Wojczewski, Chief Executive Officer of Evotec, said: "We continue to deliver on the successful execution of our Priority Reset and have achieved significant progress across key initiatives. New and extended partnerships clearly underscore Evotec's enduring leadership in R&D and precision medicine. Building on this exceptionally strong foundation, we are now laying the groundwork for an accelerated transformation program that will pave the way for long-term profitable growth. While the challenging market environment has impacted near-term results, we are seeing strong momentum across strategic priorities and look forward to reporting back on our progress in early 2025."
Challenging market conditions weigh on Shared R&D, while Just - Evotec Biologics delivers strong growth
Group revenues decreased by (1)% to € 575.7 m (9M 2023: € 580.1 m)
Total Shared R&D revenues decreased by (12)% to € 447.1 m (9M 2023: € 506.1 m, due to a challenging market environment
Evotec's Just - Evotec Biologics segment saw impressive growth, with revenues rising by
74% year-over-year, contributing €128.7 m (9M 2023: € 74.1 m) to the overall toplineAdjusted Group EBITDA totalled € (6.0) m (9M 2023: € 50.2 m) driven by a mismatch between revenues and cost base in the Shared R&D segment as well as costs related to the expansion of operations of Just - Evotec Biologics
Core business activities in Shared R&D as well as Just - Evotec Biologics reached break-even
Transformation Process on track with significant savings realised
Priority Reset is set to yield an annualised adjusted EBITDA improvement of over € 40 m, starting H2 2024
Successful implementation of measures to improve liquidity
One-off costs related to Priority Reset measures recognised at € 62.3 m as of Q3, lower than initial provision of € 68.5 m on 30 June 2024
Strategic Review process initiated to examine status quo and deliver performance and productivity improvements as part of transformation for long-term profitable growth
New and expanded partnerships
Extension and expansion of tech partnership with Sandoz for development and commercial manufacturing of biosimilars
Extension of collaboration with Bristol Myers Squibb ("BMS") based on targeted protein degradation into indications outside of oncology, triggering programme-based payment of US
$ 50 m to fund further researchFurther progress made in strategic neuroscience collaboration with Bristol Myers Squibb, payments of US
$ 25 m receivedStrong progress in strategic protein degradation partnership with Bristol Myers Squibb, resulted in reception of performance-based and programme-based payments of in total US
$ 75 m New technology development partnership with Novo Nordisk to support next-generation cell therapies
New multi-year master research collaboration and option and license agreement with Pfizer, initially focusing on early discovery research for metabolic and infectious diseases
Collaboration with X-Chem to access DNA-encoded library ("DEL") to expand hit-finding options
Operational milestone achieved
Opening of cutting-edge biologics facility J.POD in Toulouse, France (EU) on 20 September 2024 marks significant expansion of European production capabilities and strengthens position in the biologics market.
Business Outlook for full-year 2024
Group revenues1) expected in the range of € 790 - 820 m (2023: € 781.4 m).
R&D expenditures are expected in a range of € 50 - 60 m (2023: € 64.8 m).
Adjusted Group EBITDA1) is expected to reach € 15 - 35 m (2023: € 66.4 m).
1) Guidance including future non-core activities
More detailed information and financial tables are available in the half-year report published on the Evotec website under the following link: https://www.evotec.com/en/investor-relations/financial-publications
Webcast/Conference Call
The Company plans to hold a conference call to discuss the results as well as provide an update on its performance. The conference call will be held in English.
Webcast details
Date: Wednesday, 06 November 2024
Time: 2.00 pm CET (01.00 pm BT, 08.00 am ET)
To join the audio webcast and to access the presentation slides, please register via this link.
The on-demand version of the webcast will be available on our website: www.evotec.com/en/investor-relations/financial-publications.
Conference call details
To join via phone, please pre-register via this link.
You will then receive a confirmation email with dedicated dial-in details such as telephone number, access code and PIN to access the call.
A simultaneous slide presentation for participants dialing in via phone is available under this link.
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:
Investor Relations
Volker Braun
EVP Head of Global Investor Relations & ESG
volker.braun@evotec.com
Media
Susanne Kreuter
VP Head of Strategic Marketing
susanne.kreuter@evotec.com
SOURCE: Evotec SE
View the original press release on accesswire.com
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