Evotec Se · XETR:EVT
Evotec — Merger or Acquisition (July 2010)
18 slides from Evotec's merger presentation, Jul 15, 2010
Slide 1: Discovery Alliances in Metabolic Diseases: Acquisition of DeveloGen AG
Discovery Alliances in Metabolic Diseases Acquisition of DeveloGen AG Analyst presentation, Hamburg, July 15, 2010
Slide 2: Forward-looking statements
Forward-looking statements Information set forth in this presentation contains forward-looking and technologies; the risk that competing products may be more statements, which involve a number of risks and uncertainties. successful; our inability to interest potential partners in our Such forward-lo
Slide 3: Agenda
Agenda • Strategic and scientific rationale • Financial implications PAGE 3
Slide 4: Adding disease biology know-how to strengthen discovery alliance portfolio
Adding disease biology know-how to strengthen discovery alliance portfolio Strategic rationale Where DeveloGen fits in Key factors of success • Differentiated first-call Metabolic diseases platform technologies • Boehringer Ingelheim Core disease • Andromeda/TEVA and disease know-how biology know-ho
Slide 5: Synergistic disease expertise sharpens Evotec's leadership role in drug discovery
Synergistic disease expertise sharpens Evotec’s leadership role in drug discovery Combination of disease biology & platform technologies Evotec 1z Screening & assay develop. Diseases expertise Di ti to build integrated • Acquisition adds 2z Fragment based develop. existing performance- discovery all
Slide 6: Metabolic diseases know-how opens significant markets for potential Evotec alliances
Metabolic diseases know-how opens significant markets for potential Evotec alliances Market opportunity in metabolic diseases 1) bn USD Expected revenues in 2014 Total market in diabetes treatment 2007 USD >20b >20bn Others Insulins Orall anti- O ti diabetics PAGE 6 1) Source: BioCentury 2009
Slide 7: The metabolic world has seen significant commercial activity
The metabolic world has seen significant commercial activity Selected recent partnerships to fight metabolic diseases Indications Alliance partners Key financials Forest/TransTech $ 50m upfront, $ 955m milestones+royalties Sanofi/CureDM $ 335m milestones, upfront+royalties A Amgen/Array /A $ 60 60m
Slide 8: Acquisition comes with certain defined assets that underpin Evotec's core growth strategy
Acquisition comes with certain defined assets that underpin Evotec’s core growth strategy Key assets of the deal Upside for Programme Type of alliance Status Partners Evotec Insulin Integrated Drug Preclinical +++ Sensitizer Discovery Alliance DiaPep277 Product Development Phase III Andromeda/ + All
Slide 9: Significant upside potential in diabetes: Integrated discovery alliance with BI
Significant upside potential in diabetes DeveloGen Asset 1: Integrated discovery alliance with BI 1) Insulin Sensitizer Alliance Conditions • Potential treatment in the • € 7m upfront payment field of diabetes, obesity • € 237m milestone and metabolic syndrome potential t ti l Next value point: • De
Slide 10: A Phase III opportunity for product royalties
A Phase III opportunity for product royalties DeveloGen Asset 2: Product development alliance 1) DiaPep 277 Product Alliance Conditions • Potential treatment of • Significant short-to-mid- type 1 diabetes term milestone potential • Transfer T f off development d l t • Single-digit Si l di it product
Slide 11: Unpartnered beta-cell technology
Unpartnered beta-cell technology DeveloGen Asset 3: Innovation for markets of significant medical need Beta-Cell technology Commercial rationale • Potential treatment of type • Vast patent estate and 1 and type 2 diabetes, know-how targeting loss of functional • Unique U i pharmacological h l i l be
Slide 12: Agenda
Agenda • Strategic and scientific rationale • Financial implications PAGE 12
Slide 13: Deal structure mitigates acquisition risk
Deal structure mitigates acquisition risk Up to €14 million in shares plus deferred cash payments # of shares Cash in € m @ value of €2 NOW: Ca. 2 4 m shares At closing 1) (mainly working Risk mitigated capital) payments, keeping full upside id potential t ti l for Evotec LATER: 30% of future Max. 3
Slide 14: Cord Dohrmann appointed CSO of Evotec; shareholder structure after acquisition
Cord Dohrmann appointed CSO of Evotec Shareholder structure after acquisition TVM From 6.4% Roland Capital Management New Evotec Shareholders 1) to 10.5% Oetker/ ROI • Werner Lanthaler (CEO) • TVM Capital Intercell AG, McKinsey&Co, Federation of Industrialists • Nomura From 14.5% • Klaus Maleck (CFO
Slide 15: Path to profitability, and liquidity guidance comfortably confirmed despite acquisition
Path to profitability, and liquidity guidance comfortably confirmed despite acquisition Guidance 2010 fully confirmed in €m Internal R&D focused on key programmes DeveloGen does not add short-term revenues including DeveloGen Assets 48 - 50 20071) 2008 2009 2010 2011 39.6 42.7 32.9 < -10 -20.9 -36.9
Slide 16: Approx. 20 new scientists, swift integration
Approx. 20 new scientists, swift integration Approx. 500 Evotec employees worldwide Abingdon, UK Thane, India ~210 employees ~150 employees • Medicinal chemistry • Library synthesis and • Zebrafish screening management • ADMET • Medicinal chemistry support • Structural biology • Development chemistr
Slide 17: Strong news flow to come
Strong news flow to come Overview of Expected Key Events Key milestones Grow discovery G di • Expand all existing alliances (e.g. CHDI, Novartis, Ono Pharmaceutical…) alliances, build 1 joint innovation • Build several new integrated technology/disease alliances (e.g. Genentech) alliances • Deliver
Slide 18: Your contact: Dr Werner Lanthaler
Your contact: Dr Werner Lanthaler Chief Executive Officer +49.(0).40.560 81-242 +49.(0).40.560 81-333 Fax werner lanthaler@evotec com werner.lanthaler@evotec.com