Innovation Efficiency Evotec Company Overview. Evotec AG, Company presentation, Jefferies 2015 Global Healthcare Conference, 04 June 2015, New York

Transcription

1 Innovation Efficiency Evotec Company Overview Evotec AG, Company presentation, Jefferies 2015 Global Healthcare Conference, 04 June 2015, New York

2 Forward-looking statements Information set forth in this presentation contains forward-looking statements, which involve a number of risks and uncertainties. The forward-looking statements contained herein represent the judgement of Evotec as of the date of this presentation. Such forward-looking statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based. 1

3 Agenda Evotec at a glance Innovation efficiency Financials & outlook 2

4 Leadership in drug discovery Our mission Based on the highest quality drug discovery science, and through innovative collaborations, we are building a partnered product pipeline. 3

5 Clear long-term strategy Strategy overview Action Plan Restructuring Capital efficiency for sustainability First EVT Innovate investments 2012 Business segmentation Investments in discovery service platform Performance-based integrated discovery and clinical alliances 2015 Partnered product pipeline to gain milestones and royalties Highest quality discovery and pre-clinical service EVT Execute Academic bridge and Cure X/Target X strategy EVT Innovate 2020 Cure X/Target X strategy 4

6 Improving R&D capital efficiency Pre-clinical development candidate PDC Evotec s Sweet spot Academia Target ID/-Validation Hit- Identification Lead Optimisation Pre-clinical Phase I Phase II Phase III Approval Market Pre-clinical Phase Clinical Phase Duration > 14 years Evotec Approx. 3 6 years PDC Pre-clinical development candidate Partner Approx years Cost Approx. $ 1 3 bn Approx. $ 5 15 m Evotec s core competencies 5 Source: Paul et al. Nature Reviews 9: 2013

7 The megatrend Improvement of R&D productivity Market dynamics in drug discovery Growth driver Drug discovery outsourcing is a macro trend Market overview Revenues, in $ bn 1 Increasing comfort with outsourcing 2 Higher R&D capital efficiency for innovation % p.a Ability to adjust investments proportional to portfolio (e) 2016(e) 2017(e) 2018(e) 6 Source: Visiongain; Drug Discovery Outsourcing: World Market 2015

8 A global company with a complete offering Evotec s footprint San Francisco, Branford and Princeton, USA ~65 employees Compound ID, selection and acquisition Compound QC, storage and distribution Cell & Protein production Abingdon and Manchester, UK ~280 employees Medicinal chemistry ADMET Structural biology In vitro & in vivo Anti-infective platform/screening Toulouse, France ~210 employees Compound management Hit identification In vitro & in vivo oncology Medicinal chemistry ADME & PK Early drug formulation & Solid form screening Cell, protein & antibody production Hamburg (HQ), Göttingen and Munich, Germany ~375 employees Hit identification In vitro & in vivo biology Chemical proteomics & Biomarker discovery and validation Cell & protein production 7

9 Significant Sanofi alliance initiated in 2015 Summary of Sanofi alliance 1) & Next steps Financials Pipeline & Innovation Guaranteed commitment of approx. 250 m over the next five years, including upfront cash receipts of more than 40 m Master service agreement for drug discovery services with Sanofi improves revenue growth and profitability Increased capacity for EVT Innovate and EVT Execute with minimal Evotec funded Capex investment and dilution to shareholders Addition of first-class team with significant oncology expertise Addition of more than 15 oncology projects Sanofi screening library available for third-party collaborations Bridge from academia to Pharma in France & EU Next steps Expansion of Pharma and biotech service network Offering of combined libraries of 1.7 million compounds for thirdparty screening Build a sustainable oncology pipeline by progressing development stage projects towards IND Accelerate discovery stage projects and progress towards PDC nomination Expand academic network in France for future Cure X/Target X initiatives 8 1) Closing on 31 March 2015 (effective 01 April 2015)

10 Agenda Evotec at a glance Innovation efficiency Financials & outlook 9

11 ONE company TWO segments EVT Execute & EVT Innovate 10

12 Broad stand-alone innovation services EVT Execute Comprehensive drug discovery platforms High-quality service business The Western strategic outsourcing partner of choice 11

13 Focus on causes not symptoms EVT Innovate Systematic, unbiased, comprehensive drug discovery NEUROSCIENCE Patient-derived ips cells as disease models with initial focus in neurodegeneration DIABETES & DIABETIC COMPLICATIONS Accessing unlimited supply of human beta cells; Pursuing podocyterelated mechanisms ONCOLOGY Novel targeted therapies Cancer immunity & cancer cell metabolism Resistance to SoC therapies OTHER FIELDS OF KEY EXPERTISE Pain Anti-infectives Anti-inflammatory 12

14 Fast growing portfolio of > 70 product opportunities Partnership portfolio Discovery Pre-clinical Clinical Molecule Indication Partner Discovery Pre-clinical Phase I Phase II Phase III EVT302 1) EVT201 Somatoprim EVT100 EVT401 ND 2) ND 2) ND 2) ND 2) Various AD Insomnia Acromegaly CNS diseases Inflammation Oncology Oncology Pain Oncology Endometriosis EVT770 Diabetes type 2/1 ND 2) ND 2) Various Various Pain Inflammation Oncology Inflammation Various Diabetes type 2/1 Various Diabetes type 2/1 Various Various Various Various Kidney disease Oncology Alzheimer s disease Oncology Various CNS/MS NEU 2 Various Diabetes >5 further programmes Various Neurology >5 further programmes Various Oncology >10 further programmes Various Pain & Inflammation >5 further programmes 13 1) RO ; Name of compound recently changed to Sembragiline by Roche 2) Not disclosed

15 Significant options in CNS Neurology overview Molecule(s) Indication (mechanism) Partner Status Next milestone Commercials EVT302 1) Alzheimer s disease (MAO-B) Phase IIb, recruitment completed Completion of Phase II, Phase III start EVT201 Insomnia Phase II Start clinical trials Milestones, royalties EVT100 series CNS diseases (TRD) Phase II/Pre-clinical Confirmation of preclinical study/ Phase II start Various CNS/Multiple sclerosis NEU 2 Pre-clinical/Various ND 2) ND 2) Various Huntington s disease $ 10 m upfront, up to $ 820 m milestones, significant royalties $ 2 m upfront, up to $ 173 m milestones, significant royalties Discovery ND 2) Research payments; fund up 52 FTEs Not disclosed Neurodegeneration Discovery ND 2) Research payments Not disclosed Fabry s disease Discovery ND 2) Research payments TargetAD Alzheimer s disease (Novel MoA) TargetASIC Multiple sclerosis Undisclosed Pharma Discovery ND 2) Up to $ 10 m research payments, approx. $ m milestones, royalties Discovery Lead status Co-funded Orexin-1 Stress-related addictive disorder programme ND 2) ND 2) Research payments CureMN Amyotrophic lateral sclerosis (ALS) ND 2) Pharma partnership 14 1) RO ; Name of compound recently changed to Sembragiline by Roche 2) Not disclosed

16 Phase IIb data for Sembragiline expected in H Product development alliance with Alzheimer s disease (AD) Sembragiline 1) Status Expected key milestones AD is the most common form of dementia 44 m people diagnosed with dementia in 2013 worldwide Approx. 7.7 m new cases of dementia are diagnosed each year A potent small molecule inhibitor of monoamine oxidase-b (MAO-B) Reduces the formation of toxic reactive oxygen species in the brain of Alzheimer s disease patients where over expression of MAO-B is postulated to contribute to neuronal damage One of the very few latestage small molecule AD clinical trials in this specific AD patient population Patient recruitment for Phase IIb, multicentre, randomised, doubleblind, parallel-group, placebo-controlled study to evaluate the efficacy and safety in patients with moderate severity Alzheimer disease completed (n=495, 52 week trial) Results of Phase IIb trial expected in Q ) EVT 302/RG1577/ RO Source: Alzheimer s Disease International

17 Strategic focus on diabetes and diabetic complications Diabetes and diabetic complications overview Project(s) Indication (mechanism) Partner Status Next milestone Commercials EVT770 ALM Type 1 and 2 diabetes (beta cell regeneration) Type 1 and 2 diabetes (beta cell regeneration) Pre-clinical Phase I 5 m upfront, high margin research payments, up to 254 m milestones, significant royalties Discovery Phase I 2 m upfront, high margin research payments, up to 183 m milestones/product, significant royalties Various Kidney disease ND 1) ND 1) Undisclosed upfront, high margin research payments, milestones/product, royalties TargetEEM Type 1 and 2 diabetes (enteroendocrine) Discovery Pharma partnership CureNephron Chronic kidney disease Discovery Pharma partnership CureBeta Type 1 and 2 diabetes (beta cell regeneration) Discovery Pharma partnership 16 1) Not disclosed

18 World-class pipeline-building in oncology EVT Innovate & Sanofi Molecule(s) Indication (mechanism) Partner Status Next milestone Commercials Somatoprim (DG3173) Acromegaly/NET Phase IIa Pharma partnership Consulting fees, royalties ND 1) Oncology Phase I ND 1) Research payments, milestones, royalties ND 1) /Biomarker Oncology Phase I ND 1) Success-based platform milestones TargetCanMet TargetKDM TargetImmuniT Various (Epigenetic targets) Various (Epigenetic targets) Various (Immunotherapy) ND 1) Research payments, milestones, royalties H2L 2) ND 1) Research payments, milestones, royalties ND 1) Oncology Preclinical Preclinical Preclinical Pharma partnership ND 1) Pharma partnership ND 1) Four preclinical oncology assets Multiple early discovery projects Multiple Cure X/Target X initiatives as opportunities TargetDBR Glioblastoma H2L 2) Pharma partnership ND 1) KRas Oncology Discovery ND 1) ND 1) 17 1) Not disclosed 2) Hit to Lead

19 Significant partnerships in pain, inflammation and anti-infectives Molecule(s) EVT401 Pain, inflammation and anti-infectives Indication (mechanism) Partner Status Next milestone Commercials Inflammation (P2X7 inhibitor) Phase I/II Phase II start Up to 60 m milestones, royalties Various Endometriosis Pre-clinical Pre-clinical candidate 12 m upfront, up to approx. 580 m milestones, royalties Various Various/Pain Pre-clinical Phase I start Undisclosed upfront, research payments, milestones, royalties Not disclosed Various/Pain Pre-clinical Successful PoC 1) Research payments, milestones, royalties Not disclosed Inflammation Pre-clinical Phase I start Undisclosed upfront payment, milestones, royalties Various Inflammation Discovery Pre-clinical Research payments, up to 183 m milestones/product, significant royalties TargetPicV Viral host targets Discovery Pre-clinical candidate TargetPGB Antibiotics Discovery Pre-clinical candidate Protein-arginine deiminases (PADs) Inflammation Discovery Pre-clinical candidate Research payments, milestones up to approx. $ 13 m 18 1) Proof of Concept

20 Translating first-in-class science to Pharma The Bridge CureBeta (Harvard Stem Cell Institute) CureNephron 1) (Harvard, BWH, USC, AstraZeneca) TargetASIC 1) (BMBF/undisclosed Pharma partner) Somatoprim (Aspireo) TargetPicV (Haplogen) TargetCanMet 1) (Debiopharm) TargetImmuniT (Apeiron) TargetDBR (Yale) TargetSP (Internal) TargetFX (Internal) TargetPGB (Harvard) TargetKDM (Dana-Farber, Belfer) CureMN (Harvard) TargetEEM (Harvard) TargetAD 1) (NBB/J&J) TargetBCD (Internal) TargetSX (undisclosed) TargetDR (Internal) TargetColCan (Internal) TargetKX (undisclosed) TargetCytokine (DRFZ) Fraunhofer Initiative French Academic Bridge Ohio State University New York University Office of Therapeutic Alliances 19 1) Today at least partly progressed under commercial partnership

21 Agenda Evotec at a glance Innovation efficiency Financials & outlook 20

22 Strong revenue performance in EVT Execute, outstanding gross margin in EVT Innovate Condensed income statement based on segments for Q in m EVT Execute EVT Innovate Intersegment elimination Evotec Group Revenues (5.4) 21.5 Gross margin 24.8% 46.2% 30.7% R&D expenses (0.1) (4.6) 0.9 (3.8) SG&A expenses (3.8) (1.3) (5.1) Amortisation of intangible assets (0.5) (0.1) (0.6) Other op. income (expenses), net (0.5) 0.1 (0.4) Operating income (loss) 0.7 (4.0) (3.3) Revenue in EVT Execute: Primarily attributable to strong growth in base business especially in anti-infectives Increased investment in Cure X/ Target X initiatives Positive adjusted EBITDA of 3.5 m in EVT Execute due to solid gross margin EBITDA 1) 3.5 (3.8) (0.3) 21 1) Adjusted for changes in contingent considerations

23 Accelerated path to growth and sustainability Key metrics Revenues (in m) EBITDA adjusted 1) (in m) Alliances >100 > e e e R&D expenses (in m) Liquidity 2) (in m) Employees 3) > > e e e 22 1) 2) 3) 1) Adjusted for changes in contingent considerations 2) Cash and cash equivalents; 3) Effective on 01 April 2015, Evotec acquired Sanofi s scientific operations in Toulouse, France; 2015 number including the employees from this transaction

24 Increase in revenue guidance, all other elements of guidance confirmed Guidance ) 1 Doubledigit topline growth More than 35% growth excluding milestones, upfronts and licences due to Sanofi alliance (previously: more than 20%) 2 Profitable Positive adjusted EBITDA 2) Liquidity is expected to be well in excess of 100 m 3) 3 Accelerated investments Increased R&D investments of approx m in strategic Cure X and Target X initiatives to accelerate long-term clinical pipeline building Continued capacity and capability building with up to 10 m 23 1) Varies from the guidance provided in the Annual Report 2014 following the financial impact of the Sanofi transaction 2) EBITDA excludes impairments on intangible and tangible assets and goodwill as well as the total non-operating result 3) Excluding any potential cash outflow for M&A or similar transactions

25 Strong team for innovation Management & shareholder structure 13% Roland Oetker/ROI ~13.0% 68% Free float 6% TVM Capital Number of shares: m Listing: Frankfurt TecDAX, OTCBB 52 week high/low: 4.32/ % BVF 1) 1% Management Management Board Werner Lanthaler (CEO) Long-time experience in Pharma & biotech Mario Polywka (COO) 18 years Evotec experience Cord Dohrmann (CSO) Outstanding background in metabolics Colin Bond (CFO) Big industry multi-national background Key scientific advisor Doug Melton Harvard University/HHMI Supervisory Board Wolfgang Plischke Ex-Bayer Walter Wenninger Ex-Bayer Claus Braestrup Ex-Lundbeck Paul Herrling Ex-Novartis Bernd Hirsch Symrise AG Iris Löw-Friedrich UCB 24 1) BVF Partners L.P. and its affiliates

26 Starting a strong 2015 Expected key milestones in 2015 EVT Execute New long-term deals with large and midsized Pharma and biotech New integrated technology/disease alliances Milestones from existing alliances EVT Innovate Strong progress of clinical pipeline within partnerships Phase IIb data with Roche in AD alliance Expansion of network of top-class academic alliances Partnering of Cure X/Target X initiatives 25

27 Reporting dates M/Q1 Interim Report 12 May AGM in Hamburg 09 June 6M/Q2 Interim Report 12 August 9M/Q3 Interim Report 10 November 26

28 Your contact: Dr Werner Lanthaler Chief Executive Officer +49.(0) (0) Fax