Hamburg, Germany | Oxford, UK - Evotec AG (Frankfurt Stock Exchange:
EVT) reported today results for the first nine months of 2007.
Highlights:
* Financials in-line with Evotec's full year expectations
* Compelling results achieved in two proof-of-concept Phase II
trials with lead insomnia drug candidate EVT 201
* Sale of the Chemical Development Business to Aptuit and the
proposed Renovis acquisition further emphasize the strategic
transformation of Evotec towards a drug discovery and development
company
* Merger will create a global company with three clinical
candidates, a strong late stage preclinical pipeline focusing on
areas of neurological and inflammatory diseases, and a strong
cash position; expected to close in Q1 2008
* Expected year-end cash position increased to EUR 93-98 million,
not yet including Renovis' cash
All amounts discussed in this press release are related to Evotec's
continuing operations. The discontinued operations and a discussion
of the business sold to Aptuit are provided in Evotec's full Third
Quarter Report.
Revenues for the first nine months of 2007 were EUR 23.2 million, 23%
below last year's level (2006: EUR 29.9 million). The decline is the
consequence of (i) lower milestone income compared to the same period
last year (approximately - EUR 3 million), (ii) the reduction of the
library synthesis business following the transfer of this business
into a joint venture with RSIL (reduction of EUR 4.0 million or 82%),
and (iii) decline of the US dollar against Evotec's reporting
currency Euro. At constant 2006 currencies (UK Sterling and US
dollar), revenues would have been approximately one million higher
(EUR 24.1 million). Excluding these three extraordinary effects
Evotec's remaining business performed strongly, growing 6% from EUR
21.9 million for the first nine months of 2006 to EUR 23.2 million
for the first nine months 2007.
The Group operating result for the first nine months of 2007 amounted
to EUR (36.7) million (2006: EUR (25.0) million). The decline is a
result of the reduced revenue and gross profit levels, high
investment in the advancement and enhancement of Evotec's proprietary
pipeline (R&D expenses: +22%) and a related 19% increase in SG&A
expenses, including transaction costs for divestments and
acquisitions. For the first nine months of 2007, net loss remained on
last year's level at EUR 23.6 million (2006: EUR 24.6 million). This
is due to a non-operating profit from the divestment of Evotec
Technologies GmbH to PerkinElmer (EUR 11.2 million), the divestment
of shares of Direvo Biotech AG (EUR 0.5 million) and high interest
income due to increased cash levels (EUR 1.0 million).
In total, cash and cash equivalents at the end of September 2007 on a
proforma basis including proceeds from the divestment of Evotec's
Chemical Development Business to Aptuit, Inc. (approximately EUR 46.4
million) amounted to EUR 106.8 million. The reported cash position
excluding the proceeds from the divestment to Aptuit was EUR 60.4
million (December 31, 2006: EUR 78.1 million). The decrease mainly
results from high R&D investment and an increase in working capital
by EUR 10.6 million compared to the extraordinarily low level of
working capital recorded at year-end 2006.
Corporate Events:
* Compelling proof-of-concept data achieved in two Phase II studies
with insomnia drug candidate EVT 201
* In adult insomniacs (first study), EVT 201 showed highly
statistically significant effects on sleep onset and
maintenance and was free of any subjective evidence of
hang-over, thereby revealing a competitive drug profile
* Top-line results of the second study in elderly insomniacs
confirmed the robust effects seen in the first study and
indicate that the same doses show hypnotic efficacy in the
elderly as well as positive effects on day-time performance
(less sleepiness)
* Second proof-of-concept study in cognition started with
Alzheimer/pain candidate EVT 101; start of Phase II neuropathic
pain study delayed until mid 2008 following IND review
* Phase I studies for EVT 302 (smoking cessation) progressing as
planned; there were no significant adverse effect findings so
far; further Phase I study started to confirm superiority of the
compound (no liability with tyramine containing foods)
* Disposal of Chemical Development Business to Aptuit for £31.5
million, effective November 2007
* Proposed acquisition of US-based Biotech company Renovis and
anticipated NASDAQ listing; expected to close in Q1 2008
* Public-private-partnership "European Screening Port" established
in Hamburg together with the City of Hamburg and the State of
Germany
"The third quarter was a major one for Evotec. The sale of our
Chemical Development Business to Aptuit and the proposed acquisition
of Renovis are major milestones in the implementation of our
strategic plan to transition into a drug discovery and development
company for Central Nervous Systems (CNS) diseases. These
transactions significantly strengthen our liquidity and accelerate
our CNS pipeline development. Renovis adds complementary pipeline
projects to our R&D portfolio and sufficient cash to fund their
future development. Three Renovis programs in pain and inflammatory
disease are expected to enter Phase I clinical trials in 2008/2009",
said Jörn Aldag, President & Chief Executive Officer of Evotec AG.
"In October, we also released compelling, top-line, proof-of-concept
data in elderly insomnia patients for our lead compound EVT 201.
These confirmed earlier data from adult insomniacs demonstrating
desirable advantages in sleep onset, maintenance, and lack of
hangover. We expect the compound to be attractive to potential
partners as it addresses key limitations of competitive therapies. We
aim to out-license EVT 201 in 2008."
2007 financial targets confirmed
Evotec confirms its financial targets for the year 2007. Revenues for
the continuing operations are expected to be in the range of EUR 30 -
35 million. The sale of the Chemical Development business to Aptuit
Inc. will contribute a non-operating profit of approximately GBP 17
million (approx. EUR 25 million) in Q4 2007 subject to the final
closing of the books. Including the cash proceeds from this
transaction, the targeted year-end cash position improves
significantly to between EUR 93 million and EUR 98 million.
Conference Call
Evotec will hold a conference call today at 02.00 p.m. CET (01.00
p.m. GMT/08.00 a.m. US time East Coast) to discuss the financial
results as well as progress in first nine months of 2007. Jörn Aldag,
President & CEO, Dr Klaus Maleck, Chief Financial Officer, and Dr
John Kemp, Chief Research & Development Officer, will lead the call.
Conference Call Numbers (listen only):
Europe:
+49.(0)69.5007 1308 (Germany)
+44.(0)20.7806 1955 (UK)
US: +1.718.354 1389
Access Code: 4882161
Webcast: www.evotec.com
A replay of the conference call will be available for 24 hours and
can be accessed in Europe by dialing +49.(0)69.22222 0418 (Germany)
or +44.(0)20.7806 1970 (UK) and in the US by +1.718.354 1112. The
access code is 4882161#. The on-demand version of the webcast will be
available on our website: www.evotec.com - Investors - Financial
Reports.
Forward looking statements
Information set forth in this report contains forward-looking
statements, which involve a number of risks and uncertainties. Such
forward-looking statements include, but are not limited to,
statements about the anticipated benefits of Evotec's products, the
timing of the completion of the transaction between Evotec and
Renovis, the anticipated benefits of the business combination
transaction involving Evotec and Renovis, including future financial
and operating results, the combined company's plans, objectives,
expectations and intentions, the anticipated timing and results of
the combined company's clinical and pre-clinical programs, and other
statements that are not historical facts. Evotec cautions readers
that any forward-looking information is not a guarantee of future
performance and that actual results could differ materially from
those contained in the forward-looking information. These include
risks and uncertainties relating to: the ability to obtain regulatory
approvals of the transaction on the proposed terms and schedule; the
parties' ability to complete the transaction because conditions to
the closing of the transaction may not be satisfied; the failure to
successfully integrate the businesses; unexpected costs or
liabilities resulting from the transaction; the risk that synergies
from the transaction may not be fully realized or may take longer to
realize than expected; disruption from the transaction making it more
difficult to maintain relationships with customers, employees or
suppliers; competition and its effect on pricing, spending,
third-party relationships and revenues; the need to develop new
products and adapt to significant technological change;
implementation of strategies for improving internal growth; use and
protection of intellectual property; general worldwide economic
conditions and related uncertainties; future legislative, regulatory,
or tax changes as well as other economic, business and/or competitive
factors; and the effect of exchange rate fluctuations on
international operations.
The risks included above are not exhaustive. The most recent reports
on Form 10-K, Form 10-Q, Form 8-K and other periodic reports filed by
Renovis with the Securities and Exchange Commission contain
additional factors that could impact the combined company's
businesses and financial performance. The parties expressly disclaim
any obligation or undertaking to release publicly any updates or
revisions to any such statements to reflect any change in the
parties' expectations or any change in events, conditions or
circumstances on which any such statement is based.
Additional information
Renovis has filed a Current Report on Form 8-K that includes as an
exhibit the Agreement and Plan of Merger between Evotec and Renovis.
Evotec intends to file a Registration Statement on Form F-4 with the
Securities and Exchange Commission in connection with the proposed
merger. Evotec and Renovis expect to mail a joint proxy
statement/prospectus, which will form part of the Registration
Statement on Form F-4, to shareholders of Renovis in connection with
the proposed merger. This document will contain important information
about the merger and should be read before any decision is made with
respect to the merger. Investors and stockholders will be able to
obtain free copies of this document and any other documents filed or
furnished by Evotec or Renovis through the website maintained by the
Securities and Exchange Commission at www.sec.gov. Free copies of
these documents may also be obtained from Evotec, by directing a
request to Evotec's Investor Relations department at
Schnackenburgallee 114, 22525 Hamburg, Germany, or from Renovis, by
directing a request to Renovis' Investor Relations department at Two
Corporate Drive, South San Francisco, California 94080.
In addition to the documents referenced above, Renovis files or
furnishes annual, quarterly and current reports, proxy statements and
other information with the Securities and Exchange Commission. You
may read and copy any reports, statements or other information filed
or furnished by Renovis at the SEC's Public Reference Room at Station
Place, 100 F Street, N.E., Washington, D.C. 20549. You can request
copies of these documents by writing to the SEC and paying a fee for
the copying cost. Please call the SEC at 1-800-SEC-0330 for more
information about the operation of the Public Reference Room.
Renovis's SEC filings are also available to the public at the SEC's
web site at www.sec.gov, or at their web site at www.renovis.com.
Third Quarter Report 2007
Key figures of consolidated statements of operations according to
IFRS
Evotec AG and Subsidiaries - continuing operations
Euro in thousands except share data and per share data
+--------------------------------------------------------------------------------------+
| | 01-09/ | 01-09/ |Change| 07-09/ | 07-09/ |Change|
| | 2007*) |2006*)**) | in % | 2007*) |2006*)**) | in % |
|----------------------------+----------+----------+------+----------+----------+------|
| | | | | | | |
|----------------------------+----------+----------+------+----------+----------+------|
|Total revenue | 23,199| 29,931|(22.5)| 7,379| 10,948|(32.6)|
|----------------------------+----------+----------+------+----------+----------+------|
|Gross margin | 20.0| 33.8| | 19.4| 35.0| |
|----------------------------+----------+----------+------+----------+----------+------|
| | | | | | | |
|----------------------------+----------+----------+------+----------+----------+------|
|Research and development | 26,629| 21,843| 21.9| 10,185| 6,757| 50.7|
|expenses | | | | | | |
|----------------------------+----------+----------+------+----------+----------+------|
|Selling, general and | 12,533| 10,552| 18.8| 3,822| 3,065| 24.7|
|administrative expenses | | | | | | |
|----------------------------+----------+----------+------+----------+----------+------|
|Amortisation of intangible | 2,170| 2,451|(11.5)| 548| 805|(31.9)|
|assets | | | | | | |
|----------------------------+----------+----------+------+----------+----------+------|
|Restructuring expenses | 0| 0| -| 0| 0| -|
|----------------------------+----------+----------+------+----------+----------+------|
|Restructuring income | 0| 0| -| 0| 0| -|
|----------------------------+----------+----------+------+----------+----------+------|
|Other operating expenses | 1,460| 285| 412.3| 596| 47| -|
|----------------------------+----------+----------+------+----------+----------+------|
|Other operating income | (1,504)| 0| -| (618)| 0| -|
|----------------------------+----------+----------+------+----------+----------+------|
|Operating result | (36,655)| (25,005)|(46.6)| (13,099)| (6,841)|(91.5)|
|----------------------------+----------+----------+------+----------+----------+------|
| | | | | | | |
|----------------------------+----------+----------+------+----------+----------+------|
|Net income (loss) | (23,572)| (24,630)| (4.3)| (12,416)| (7,115)| 74.5|
|----------------------------+----------+----------+------+----------+----------+------|
| | | | | | | |
|----------------------------+----------+----------+------+----------+----------+------|
|Weighted average shares |71,141,686|65,795,671| |73,868,177|68,057,204| |
|outstanding (basic) | | | | | | |
|----------------------------+----------+----------+------+----------+----------+------|
|Net income (loss) per share | (0.33)| (0.37)| | (0.17)| (0.10)| |
+--------------------------------------------------------------------------------------+
*) Excluding contributions from the Chemical Development Business.
**) Excluding contributions from Evotec Technologies.
Key figures of consolidated balance sheets according to IFRS
Evotec AG and Subsidiaries
Euro in thousands
+-------------------------------------------------------------------+
| | 30/09/07 | 31/12/06 | Change in |
| | | | % |
|-----------------------------+------------+------------+-----------|
| | | | |
|-----------------------------+------------+------------+-----------|
| Cash and cash equivalents | 60,432 | 78,723 | (23.2) |
|-----------------------------+------------+------------+-----------|
| Net working capital | (3,696) | (10,606)*) | (65.2) |
|-----------------------------+------------+------------+-----------|
| Current and non-current | | | |
| portion of loans and | 7,111 | 11,906 | (40.3) |
| finance lease obligations | | | |
|-----------------------------+------------+------------+-----------|
| Stockholders' equity | 134,327 | 137,176 | (2.1) |
|-----------------------------+------------+------------+-----------|
| | | | |
|-----------------------------+------------+------------+-----------|
| Total assets | 168,395**) | 205,526**) | (18.1) |
+-------------------------------------------------------------------+
*) Excluding early payments received for Evotec Technologies.
**) Including assets held for sale.
Contact: Anne Hennecke, Senior Vice President, Investor Relations &
Corporate Communications, Evotec AG, Phone: +49-40-56081-286,
anne.hennecke@evotec.com
--- End of Message ---
Evotec AG
Schnackenburgallee 114 Hamburg Germany
WKN: 566480; ISIN:
DE0005664809 ; Index: Prime All Share, CDAX, HDAX, MIDCAP, TECH All
Share;
Listed: Geregelter Markt in Frankfurter Wertpapierbörse, Prime
Standard in Frankfurter Wertpapierbörse,
Freiverkehr in Börse Berlin, Freiverkehr in Bayerische Börse München,
Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr
in Niedersächsische Börse zu Hannover;
