Slide 1: Evotec & Sanofi enter into exclusive negotiations for major multi-component strategic collaboration
Evotec & Sanofi enter into exclusive negotiations for major multi-component strategic collaboration Evotec AG, Investor and Analyst Call, 03 December 2014
Slide 2: Forward-looking statements
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 st
Slide 3: Welcome! Evotec Management Team
Welcome! Evotec Management Team Werner Lanthaler, CEO Colin Bond, CFO Mario Polywka, COO Cord Dohrmann, CSO PAGE 2
Slide 4: Agenda
Agenda The alliance Evotec’s strategy – Execute on Innovate Summary and financial implications PAGE 3
Slide 5: Major collaboration across Innovate and Execute
Major collaboration across Innovate and Execute Transaction under final exclusive negotiations • Multiple high-value initiatives for EVT Execute & EVT Innovate, pipeline of joint oncology projects with significant upside for Evotec • Approx. € 250 m guaranteed commitment from Sanofi over the next fi
Slide 6: Three big initiatives to improve innovation efficiency
Three big initiatives to improve innovation efficiency Elements of the alliance Pipeline-building collaboration in oncology • Pipeline of pre-clinical oncology discovery projects licensed from Sanofi to Evotec 1 • Potential joint Cure X/Target X initiatives and multiple oncology discovery targets •
Slide 7: Adding Toulouse & Sanofi to Evotec's footprint
Adding Toulouse & Sanofi to Evotec’s footprint Evotec overview – A step function from approx. 650 to 860 scientists San Francisco, Branford Abingdon and Hamburg, Germany Munich and Göttingen, Toulouse, France* and Princeton, USA Manchester, UK (Manfred Eigen Campus) Germany ~ 200 scientists ~65 empl
Slide 8: Agenda
Agenda The alliance Evotec’s strategy – Execute on Innovate Summary and financial implications PAGE 7
Slide 9: Outsourcing to improve R&D productivity
Outsourcing to improve R&D productivity Market dynamics in drug discovery Drivers of more flexible models Drug discovery outsourcing is a macro trend between Pharma, biotech & CROs Market overview – Revenues, in $ bn 1 Increasing comfort with outsourcing 5–10% p.a. 21.3 18.8 16.6 14.8 Higher R&D cap
Slide 10: Building a product pipeline by sharing development risks supported by discovery services
Building a product pipeline by sharing development risks supported by discovery services and profits Evotec’s strategy 2020 2014/15 2012 2009 • Gain royalties on top of service and • Invest in highest quality milestone income through strategic • Restructuring early discovery service product pipeline
Slide 11: Two segments – ONE company: EVT Execute & EVT Innovate
Two segments – ONE company EVT Execute & EVT Innovate PAGE 10
Slide 12: Perfect match of growth capacities, high-quality capabilities and new strategic customer
Perfect match of growth capacities, high-quality capabilities and new strategic customer EVT Execute & Sanofi Execute on strategy • Increased highest quality capacity in chemistry and biology • Additional drug discovery capabilities, e.g. antibody, therapeutic protein production, early development P
Slide 13: Ground-breaking "Open Innovation" initiative with Sanofi Global Screening Library
Ground-breaking “Open Innovation“ initiative with Sanofi Global Screening Library From high-content screening to target selection “Open Innovation“ Hit Discovery Initiative • Evotec’s high-quality library with 400,000 compounds – combined with Sanofi’s 1.3 million compound library for third-party sc
Slide 14: Product opportunities with significant upside
Product opportunities with significant upside Evotec’s partnership portfolio strategy Molecule Indication Partner Discovery Pre-clinical Phase I Phase II Phase III EVT3021) AD EVT201 Insomnia Clinical Somatoprim Acromegaly EVT100 CNS diseases EVT401 Inflammation ND2) Oncology ND2) Oncology ND2) Pain
Slide 15: Alliance adds key capabilities especially in oncology
Alliance adds key capabilities especially in oncology Strategic focus areas and key themes of EVT Innovate ONCOLOGY NEUROSCIENCE DIABETES & COMPLICATIONS Epigenetics & Patient-derived iPS cells as Beta cells, immunotherapy disease models podocytes, PMT • Modulating pathways not • Screening in human
Slide 16: A step-function for Evotec's pipeline-building strategy in oncology
A step-function for Evotec’s pipeline-building strategy in oncology EVT Innovate & Sanofi Indication Molecule(s) (mechanism) Partner Status Next milestone Commercials Somatoprim Acromegaly/NET Phase Pharma partnership Consulting fees, (DG3173) IIa royalties • Five pre- clinical oncol- ND1) Oncology
Slide 17: Five projects with multiple indications will enter clinical studies within 24 months
Five projects with multiple indications will enter clinical studies within 24 months Highlights of EVT Innovate alliance Pre-clinical First-/Best- Potential Primary indication(s) validation in-class Format IND Lung cancer, glioblastoma SM 2016/17 Lung cancer SM 2016/17 HCC/HNSCC SM 2016/17 HCC mAb 2
Slide 18: Initiative of Evotec and Sanofi to translate first-in-class science to industry
Initiative of Evotec and Sanofi to translate first-in- class science to industry “The French Academic Bridge” 2012 2013 2014 CureBeta TargetImmuniT TargetSX (Harvard Stem Cell (Apeiron) (undisclosed) Institute) TargetDBR TargetBCD CureNephron1) (Yale) (Internal) (Harvard, BWH, TargetSP TargetDR USC,
Slide 19: Agenda
Agenda The alliance Evotec’s strategy – Execute on Innovate Summary and financial implications PAGE 18
Slide 20: Capacity, capabilities, customer and cash: Summary of Alliance
Capacity, capabilities, customer and cash Summary of Alliance • Guaranteed commitment of approx. € 250 m over the next five years, including a sizeable upfront cash payment that will be defined in the agreement • Master Service Agreement for Drug Discovery Services with Sanofi improves 1 Financials
Slide 21: 'RESEARCH NEVER STOPS'
‘RESEARCH NEVER STOPS’