Hamburg, Germany | Oxfordshire, UK - Evotec OAI AG (Deutsche Börse: EVT, TecDAX 30), a leading partner for integrated high-value-added drug discovery and development solutions to the pharmaceutical and biotechnology industries, today reported preliminary financial results for the year 2003.
Based on unaudited accounts, the Company expects its revenue growth and EBITDA to be in line with guidance:
- Revenues of the Evotec OAI Group increased by 10% to EUR 77.2m (2002: EUR 70.0m) despite the weakness of the US-Dollar against the Euro. At constant (2002) exchange rates, revenue growth would have amounted to 21%, significantly exceeding the original guidance given in November 2002.
- Evotec OAI achieved positive earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first time in its history. EBITDA totalled approximately EUR +4m (2002: EUR -2.2m).
31 December 2003, Evotec OAI's cash position amounted to EUR 19.5m, up from EUR 19.0m at the end of Q3.
"2003 was a very significant year for us. We achieved our key financial and commercial objectives despite a continuously challenging economic climate and the strong Euro. A sound performance from our core Discovery and Development Services (DDS) business and sizeable instrument deliveries by Evotec Technologies helped to drive our growth," said Dr Dirk Ehlers, Chief Financial Officer of Evotec OAI.
Outlook. Based on industry trends, it seems that the weakness of the market caused by soft financing markets for biotechnology companies and budget cuts by pharmaceutical companies has bottomed out at the end of 2003. There are now signs of a recovery, particularly in the US and Japan, with Europe following at some distance. Given the usual time lag between funding events and orders being placed, and the higher average exchange rate of the Euro against the Dollar in the first half of 2004 compared to the same period in 2003, we expect to see more significant revenue growth in the second half of 2004. For the full year, even at recent exchange rates, we expect to exceed 2003 revenues. Individual quarters could deviate from last year's performance as sizeable instrument deliveries to Pfizer boosted performance in the first and third quarters of 2003. As of the end of January, the order book for 2004 totalled approximately EUR 40 million.
With our leading R&D solutions, we are among the strongest brands in the industry and are therefore well positioned to benefit from an upswing in the contract research and outsourcing market. Based on our current order situation, ongoing negotiations with customers and a continuous expansion of our Discovery Programs Division we are optimistic about 2004 and expect to deliver good operational performance. EBITDA is planned to remain positive.
All numbers reported today are unaudited and preliminary. Evotec OAI will release its audited financial statements on 25 March 2004.
About Evotec OAI AG
Evotec OAI has established itself as the partner of choice for drug discovery and development services for pharmaceutical and biotechnology companies worldwide, maintaining its leadership role through innovation and unmatched customer service.
The Company's business strategy is clearly focussed on drug discovery. It has established the most comprehensive technology platform and skills that integrate its world-class biology and chemistry capabilities. Evotec OAI leverages this discovery engine in providing assay development and screening through to compound optimisation and drug manufacturing services to a broad and well-established network of customers. In addition, the Company engages in selected discovery programmes itself to develop drug candidates for early out-licensing. Evotec OAI's instrument and technology business is now successfully handled by its affiliate, Evotec Technologies.
With over 600 people in Hamburg, Germany and Oxfordshire, UK, Evotec OAI is dedicated to returning value to its shareholders and employees through a sustainable business strategy that balances short-term and long-term revenue opportunities.
www.evotecoai.com
Anne Hennecke, Investor Relations & Corporate Communications, Evotec OAI AG, phone: +49-40-56081-286, anne.hennecke@evotecoai.com
Anne Hennecke, Investor Relations & Corporate Communications, Evotec OAI AG, phone: +49-40-56081-286, anne.hennecke@evotecoai.com