Hamburg, Germany | Oxford, UK - Evotec AG (Frankfurt Stock Exchange: EVT) reported today results for the first half of 2007.
 
Highlights:
 
Revenues in-line with Evotec's full year expectations
First proof-of-concept trial with insomnia drug candidate EVT 201 successfully completed
Accelerated progress of EVT 201 study with elderly patients
Dynamic execution of corporate strategy through transfer of library synthesis business into joint venture with Indian RSIL (after period end)
Sustained strong cash position of EUR 72.4 million  

Revenues were EUR 28.5 million (2006: EUR 31.0 million). The 8% year-on-year decline is primarily due to a milestone payment from the collaboration with Boehringer Ingelheim recorded in the prior year as well as foreign exchange effects. At constant 2006 currencies and adjusted for the milestone effect revenues would have been approximately on last year's level. Revenues are in-line with Evotec's full year expectations which include sizeable milestone payments in the fourth quarter.
 
The Group operating result for the first half of 2007 amounted to EUR (22.3) million (2006: EUR (16.6) million). The decline is a result of the reduced revenue and gross profit levels, increasing investments into Evotec's proprietary pipeline (R&D expenses: +9%) and a 15% increase in SG&A expenses. Net loss for the first half of 2007 improved to EUR 9.8 million (2006: EUR 16.1 million) as a result of a non-operating profit from the divestment of Evotec Technologies to PerkinElmer.
 
In total, cash and cash equivalents at 30 June 2007 amounted to EUR 72.4 million (end of 2006: EUR 78.7 million), now including the cash balances held by Neuro3d.
 
Corporate Events:
 
First proof-of-concept trial with insomnia drug candidate EVT 201 successfully completed

EVT 201 showed robust and competitive effects on sleep onset and sleep maintenance and was free of any subjective evidence of hang-over
Full data set to be presented at the worldsleep07 congress in Cairns, Australia, in September 2007
Results of a second differentiation Phase II study in elderly insomniacs expected for October 2007

First proof-of-concept study in cognition started with Alzheimer/pain candidate EVT 101
Phase I studies for EVT 302 (smoking cessation) progressing as planned and without significant adverse effect findings
Acquisition of Neuro3d completed effective 1 April 2007

"Achieving first Phase II proof-of-concept with our insomnia drug candidate EVT 201 is a tremendous milestone for the Company. The highly competitive results to date provide us with an excellent basis to progress partnering discussions for further clinical development. A second Phase II study in elderly insomniacs will deliver headline results shortly which we expect will further strengthen EVT 201's differentiating profile and competitive position", said Jörn Aldag, President & Chief Executive Officer of Evotec AG. "Our financial results are in-line with our expectations for the year. We continued to effectively manage our financial resources while advancing our CNS development pipeline and ended the first half of 2007 with a strong cash balance of EUR 72 million."
 
2007 financial targets confirmed and adjusted for separation of library business into Indian joint venture and currency effects
Evotec confirms its financial targets given in March and May 2007. However, these need to be adjusted for the contribution of the library synthesis business, which will be transferred into a joint venture with RSIL (consolidated at equity), and currency effects. 2006 revenues without library sales amounted to EUR 60.8 million (2006 revenues reported: EUR 67.4 million). Hence, 2007 revenues adjusted for chemical library sales (six months) and currency effects are now expected to be in the range of EUR 62 million to EUR 67 million. This number includes success-based milestone payments which are planned for the end of the year. Including the above revenue effects and the investments in the joint venture and the Combinature assets the revised targeted year-end cash position is between EUR 50 million and EUR 55 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 half of 2007. Jörn Aldag, President & CEO, Dr Dirk Ehlers, CFO, Dr John Kemp, Chief Research & Development Officer, and Dr Klaus Maleck, EVP Finance, will lead the call.
 
Conference Call Numbers (listen only):
Europe:
+49.(0)69.5007 1305 (Germany)
+44.(0)20.7806 1950 (UK)
US: +1.718.354 1385
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 5418480#. The on-demand version of the webcast will be available on our website: www.evotec.com - Investors - Financial Reports.
 
 
Half Year Report 2007
 
Key figures of consolidated statements of operations according to IFRS
Evotec AG and Subsidiaries
 
Euro in thousands except share data and per share data








 


01-06/
2007


01-06/
2006*


Change in %


04-06/
2007


04-06/
2006*


Change
in %




 


 


 


 


 


 


 




Total revenue


28,506


30,985


(8.0)


13,390


15,203


(11.9)




Gross margin


22.4%


33.2%


 


17.1%


28.9%


 




 


 


 


 


 


 


 




Research and development expenses


16,445


15,085


9.0


9,019


6,420


40.5




Selling, general and administrative expenses


10,600


9,213


15.1


5,714


4,205


35.9




Amortisation of intangible assets


1,622


1,646


(1.5)


817


830


(1.6)




Other operating expenses


864


889


(2.8)


426


398


7.0




Other operating income


886


-


 


439


-


 




Operating result


(22,257)


(16,557)


(34.4)


(13,244)


(7,456)


(77.6)




 


 


 


 


 


 


 




Net income (loss)


(9,824)


(16,059)


38.8


(12,538)


(7,232)


(73.4)




 


 


 


 


 


 


 




Weighted average shares outstanding (basic)


69,755,846


64,639,776


 


71,414,444


66,520,128


 




Net income (loss) per share


(0.14)


(0.25)


 


(0.18)


(0.11)


 





* Excluding contributions from Evotec Technologies.
 
 
Key figures of consolidated balance sheets according to IFRS
Evotec AG and Subsidiaries
 
Euro in thousands








 


30/06/07


31/12/06


Change in %




 


 


 


 




Cash and cash equivalents


72,366


78,723


(8.1)




Net working capital


(1,548)


(10,606)*


85.4




Current and non-current portion of loans and finance lease obligations


 
9,691


 
11,906


 
(18.6)




Stockholders' equity


149,196


137,176


8.8




 


 


 


 




Total assets


187,872


205,526**


(8.6)





* Excluding early payments received for Evotec Technologies.
** Including assets held for sale.
 
 
Contact:
Anne Hennecke, SVP, Investor Relations & Corporate  Communications, Evotec AG, Phone: +49-40-56081-286, anne.hennecke@evotec.com