Evotec SE Reports Results for the First Nine Months 2022 and Provides Corporate Update
Evotec SE, a leading life science company, reported a 19% revenue increase to €510.8 million for the first nine months of 2022, despite lower milestone payments compared to 2021. The base business grew by 27% to €502.7 million. Adjusted EBITDA decreased to €44.6 million due to high expansion costs and inflated energy prices. The company also announced multiple drug discovery agreements and launched its multi-omics data analysis platform PanHunter. The full-year revenue outlook remains unchanged, targeting between €715-735 million.
- Group revenues increased by 19% to €510.8 million.
- Base business revenue growth was 27% to €502.7 million.
- Strong growth in both EVT Execute (up 23%) and EVT Innovate (up 20%) revenues.
- Successful achievement of multiple performance-based milestones.
- Commercial launch of the multi-omics data analysis platform PanHunter.
- Expansion of partnerships with significant pharmaceutical companies.
- Adjusted EBITDA decreased to €44.6 million from €70.1 million in 2021.
- Non-operating results dropped to €(119.6) million, impacting overall profitability.
- Significant increase in operational costs due to energy price inflation.
- MULTIPLE NEW AND EXTENDED ALLIANCES IN ALL AREAS
- PARADIGM SHIFT IN BIOLOGICS STARTING ITS MARKET ENTRY STRATEGY
- COMMERCIAL LAUNCH OF NEXT-GENERATION MULTI-OMICS DATA ANALYSIS PLATFORM PANHUNTER
HAMBURG, GERMANY / ACCESSWIRE / November 9, 2022 / Evotec SE (Frankfurt Stock Exchange:EVT, MDAX/TecDAX, ISIN: DE0005664809; NASDAQ: EVO) today announced the financial results and corporate updates for the first nine months 2022.
HIGHLIGHTS
EVOTEC'S TOPLINE SUCCESS REFLECTS STRONG OVERALL DEMAND
- 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 of27% (9M 2021: € 394.5 m). - 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 up20% to € 121.9 m (9M 2021: € 101.9 m), against a very high comparable basis. - 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.
- 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).
SHARED R&D PLATFORMS FOR HIGHER PROBABILITIES OF SUCCESS (POS)
- 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 …)
- Successful achievement of four performance-based milestones within existing partnerships; one IND submission, one preclinical development candidate nomination and one lead optimisation start
- Significant progress within neuroscience collaboration with Bristol Myers Squibb ("BMS")
- Expansion of E.MPD molecular patient database into autoimmune diseases through partnership with Hannover Medical School ("MHH") (after period-end)
- 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
- 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. - Commercial launch of proprietary next-generation multi-omics data analysis platform PanHunter (after period-end).
- Expansion of BRIDGE LAB150 to include Amgen as a strategic partner (after period-end)
CORPORATE
- Expansion of clinical and commercial drug substance manufacturing capacities through acquisition of Central Glass Germany, operating as Evotec Drug Substance (Germany) GmbH ("Evotec DS").
BUSINESS OUTLOOK FOR FULL-YEAR 2022 UNCHANGED AND MID-TERM TARGETS 2025 CONFIRMED
- Group revenues expected to be in a range of € 715 - 735 m or € 690 - 710 m at constant exchange rates (2021: € 618 m).
- 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).
- Unpartnered research and development expenses expected to be in a range of € 70 - 80 m (2021: € 58 m).
- 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.
FINANCIAL HIGHLIGHTS
The following table provides an overview of the financial performance in the first nine months of 2022 compared to the same period in 2021.
Key figures of consolidated income statement & segment information
Evotec SE & subsidiaries - First nine months of 2022
EVT | EVT | Intersegment Eliminations | Evotec Group | Evotec Group | |
| In T€ | Execute | Innovate | 9M 2022 | 9M 2021 | |
| Revenues1) | 388,828 | 121,931 | - | 510,759 | 430,963 |
| Intersegment revenues | 137,876 | - | -137,876 | - | - |
| Costs of revenues | -441,332 | -104,578 | 126,760 | -419,150 | -331,494 |
| Gross profit | 85,372 | 17,353 | -11,116 | 91,609 | 99,469 |
| Gross margin in % | 16.2 | 14.2 | - | 17.9 | 23.1 |
| R&D expenses2) | -4,231 | -62,206 | 11,116 | -55,321 | -53,472 |
| SG&A expenses | -88,178 | -21,680 | - | -109,858 | -71,037 |
| Impairments of intangible assets | - | - | - | - | -683 |
| Other operating | |||||
| income (expenses), net | 25,288 | 31,446 | - | 56,734 | 51,776 |
| Net operating income (loss) | 18,251 | -35,087 | - | -16,836 | 26,053 |
| Adjusted EBITDA3) | 75,826 | -31,226 | - | 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
WEBCAST / CONFERENCE CALL
The Company is going to hold a conference call to discuss the results as well as to provide an update on its performance. The conference call will be held in English.
Conference call details
Date: Wednesday, 09 November 2022
Time: 02.00 pm CET (08.00 am EDT, 01.00 pm BST)
To join via phone, please pre-register via the following link: http://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=8321512&linkSecurityString=9c554f538
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 dialling in via phone is available at https://www.webcast-eqs.com/evotec20221109/no-audio .
Webcast details
To join the audio webcast and to access the presentation slides you will find a link on our homepage www.evotec.com shortly before the event.
The on-demand version of the webcast will be available on our website: https://www.evotec.com/en/investor-relations/publications .
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 leverages this "Data-driven R&D Autobahn to Cures" for proprietary projects and within a network of partners including 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 4,500 highly qualified people. The Company's 17 sites 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 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.
Media Contact Evotec SE:
Gabriele Hansen, SVP Head of Global Corporate Communications, Phone: +49.(0)40.56081-255, gabriele.hansen@evotec.com
Hinnerk Rohwedder, Senior Specialist Corporate Communications, Tel.: +49.(0)151 4070-4843, hinnerk.rohwedder@evotec.com
IR Contact Evotec SE:
Volker Braun, SVP Head of Global Investor Relations & ESG, Phone: +49.(0)40.56081-775, volker.braun@evotec.com
SOURCE: Evotec SE
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