Evotec Se · XETR:EVT
Evotec — Merger or Acquisition (February 2011)
22 slides from Evotec's merger presentation, Feb 10, 2011
Slide 1: Best in Class Drug Discovery - Evotec acquires Kinaxo
Building innovative drug discovery alliances Best in Class Drug Discovery - Evotec acquires Kinaxo o Evotec AG Management, Munich / Hamburg, 10th February 2011
Slide 2: Forward-looking statements
Forward-looking statements s Information set forth in this presen ntation contains commercial success for new products and technologies; the forward-looking statements, which invo olve a number of risk that competing products may be more successful; our risks and uncertainties. ncertainties Such S c
Slide 3: Expanding leadership in drug discovery: Acquisition rationale
Expanding leaders ship in drug discovery Acquisition rational • Proprietary p y technology gy p platform and cap p pabilities for early y and best decisions in drug efficacy and safety (discerning com mpound from target related effects) • Keyy technology gy for strategic g expansion p o oncology of
Slide 4: Agenda
Agenda • Strategic Background • Integration in Evotec’s Drug D Discovery alliance business • Financial implications p & Outlook PAGE 3
Slide 5: History of Kinaxo
Based on technolo ogy from Max-Planck History of Kinaxo 2005 2007 2009 2011 • Founded F d d iin 2005 b by • Private P i t company, • First Fi t long l tterm service i collaborations ll b ti • Today T d approx. 25 Prof. Axel Ullrich, significant VC capital with big pharma scientists Henrik Daub, Andr
Slide 6: High quality leader in external innovation
High quality leader in external innovation General industry trends where w Kinaxo supports Evotec´s mission Increase capital efficiency with more educated 1 “stop loss” or investment decisions “External innovation” of 2 fully integrated drug discovery projects Kinaxo strengthens Evotec‘s Evotec s re
Slide 7: Agenda
Agenda • Strategic Backgound • Integration in Evotec’s s Drug Discovery Alliance Business • Financial implications p & Outlook PAGE 6
Slide 8: Kinaxo's technologies applicable in all disease areas with focus on oncology
Kinaxo s technolo Kinaxo’s ogies applicable in all disease areas with focus on oncology Integration rational M t b li alliances Metabolic lli Kinaxo Core disease biology know-how Pain & Inflammation CNS alliances alliances Today’s Evotec technology O Oncology l y alliances lli platform l tf PAGE 7
Slide 9: Today's platforms: Overview of Evotec technology platforms
Technology platform Today’s platforms s Overview of Evotec techno ology platforms • Proprietary screening technology fo or HTS, high content, label free and NMR screening • Best in class set-up set up for virtual screening HTS • EVOlution™: powerful fragment-ba ased drug discovery platform • Core ex
Slide 10: Broadening drug discovery offering
Technology platform Broadening drug discovery d offering Platform for the developm ment of better targeted drugs Evotec Solutions for best in class d drug di discovery 1 Small molecule screening More Discovery 2 Fragment drug discovery Strong diseases expertise Alliance Business 3 Medicinal chemistr
Slide 11: Complementary technologies: Integration of technology in value chain
Technology platform Complementary te echnologies Integration of technology in value chain Target On/off Mode of Drug Target Response decon- target action candidate discovery prediction volution profiling p g analysis y selection 1 Higher quality 2 Faster “stop Ph I/II loss” / Lead Preclinical invest
Slide 12: Scientifically and commercially proven
Technology platform Scientifically and commercially c proven High-end mass spectromeetry and world-class proteomics expertise Cellular Target Profiling® Proteome-wide, quantitative drug/target interaction analysis Application: • Identification of off-target off target liabilities • Clinical candidat
Slide 13: Cellular Target Profiling - Revelation of a compound's cellular target spectrum
Cellular Target g Pro ofiling g - Revelation of a compound’s cellular target spectrum Overview Cellular Target Profiling P ® • Identification of on/off-target Illustration of Cellular Target Profiling interactions in any cell type or tissue of choice on a proteome-wide basis • Determination of a com
Slide 14: KinAffinity - Native kinome profiling
KinAffinity® – Native kinome profiling Overview KinAffinity® • Identification of a kinase inhibitor‘s binding Illustration of Kinase interactions affinities to protein kinase targets expressed in any cell line or tissue • Profiling g of kinase inhibitors against g endogenously expressed full length
Slide 15: Quantitative phosphoproteomics - monitor dynamic phosphorylation
Quantitative phosp p p p phoproteomics – monitor dynamicc phosphorylation Overview PhosphoScout® • Allows global, unbiased annotation and quantiffication of regulated phosphorylation sites in living cells animal models and patient samples cells, • Currently more than 15,000 phosphorylation site es i
Slide 16: Current customers are a good fit with drug discovery alliances
Current customerss are a ggood fit Technology platform with drug discoverry alliances Portfolio of discovery allia ances & Kinaxo’s service partners Currrent cash Upside for Partners Focus area imp pact Evotec Kinaxo s service Kinaxo´s Oncology / Pain/ + +++ partners: Inflammation / Diabetes Diabete
Slide 17: Agenda
Agenda • Strategic Background • Integration in Evotec’s Drug D Discovery alliance business • Financial implications p & Outlook PAGE 16
Slide 18: Deal terms reflect risk sharing idea and earn-out components
Deal terms reflect risk sharing g idea and earn-out components Overview deal terms LBBW AM Management • Evote ec acquires 100% of all shares in Kinaxo TVM Capital ~3.0% • Evoteec pays at closing €3m in cash and approx. 2.6m ~10.5% in sha ares, of which 650T shares are held in escrow for Roland ~0.5%
Slide 19: Global reach for global projects
Global reach for global projects Ca. 550 Evotec employees worldwide Thane, India ~140 140 employees • Library synthesis & management • Medicinal chemistry support • Development chemistry Abingdon, UK ~225 employees • Medicinal chemistry Munich • Zebrafish screening Hamburg, Berlin & ~25 employees •
Slide 20: Strong strategic situation - impact for 2011ff
Strong strategic situation - impact for 2011ff Key financials – Initial guiidance for 2011 in € m More than 15% yoy growth – Cash component of aquisition Initial revenue guidance for FY 2011 comfortably financed from own liquidity 71 >64 >64 > 64 52–54 42 7 42.7 2009 2010 2011 1) 2012 1) 2009 2010 2
Slide 21: Strategic imperatives for our business model / Next steps
Strategic imperativ ves for our business model Next steps Strrengthen core business • Expand E quality leadership position in drug discovery • Invest in highly innovative approaches to open new t therapeutic routes in major markets (e.g. beta cell Core disease Metabolic alliances t technology techno
Slide 22: Building innovative drug discovery alliances
Building innovative drug discovery alliances 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