Evotec Se · XETR:EVT
Evotec — Cantor Global Healthcare Conference 2018
37 slides from Evotec's conference presentation, Oct 2, 2018
Slide 1: Evotec – Leading external innovation
Evotec – Leading external innovation Evotec AG, Company Presentation, Cantor Global Healthcare Conference, New York, 02 October 2018
Slide 2: Forward-looking statement
Forward-looking statement 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 sta
Slide 3: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 2
Slide 4: Leading external innovation to accelerate new drugs
Leading external innovation to accelerate new drugs Evotec at a glance Evotec delivers a fast growing and profitable drug discovery and development business to Pharma, biotech and foundations Evotec and its partners are progressing a pipeline of approx. 100 co-owned first-in-class projects in ma
Slide 5: The macro trend in R&D productivity is just starting
The macro trend in R&D productivity is just starting Market dynamics in external innovation Key growth drivers Macro trend in R&D outsourcing Market overview – Revenues, in € bn Capital efficiency 5-10% p.a. ~33 Switch from fixed costs to 28 ~30 variable business models 25 20 22 17 Capital elasticit
Slide 6: R&D holds great potential for further outsourcing
R&D holds great potential for further outsourcing R&D outsourcing market by stage in € bn ~30-36 ~85-90 ~10 ∑ ~ € 130 bn 100% 80% 5 Not 55 ~7 (~50%) outsourced (~60%) 60% ~25 (~70%) (~90%) 40% 5 35 Outsourced 20% ~3 (~50%) (~40%) (~30%) ~3 (10%) 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Discove
Slide 7: Consequent and fast forward – AP 2022
Consequent and fast forward – AP 2022 “Action Plan 2022 – Leading External Innovation” – The strategic goals 2022 2018 2012 2009 Sustainable profitability with positive operating cash flows including milestone Business segmentation and royalty potential Investments to build a world-class Res
Slide 8: "One stop partner" for external innovation
“One stop partner” for external innovation Evotec’s integrated offering and core competences along the value chain Pre- Hit- Lead Target ID/ clinical identi- optimi- IND Phase I Phase II Phase III Approval Market validation Tox fication sation testing Evotec offers end-to-end platform solutions incl
Slide 9: Unique business model for high value generation
Unique business model for high value generation Linking strategic goals with operational imperatives Value generation from three initiatives EVT Execute Expand critical mass, world-leading platforms, and maintain delivery culture Continued focus on operational excellence, innovation efficiency,
Slide 10: Unique disease expertise coming together
Unique disease expertise coming together Global footprint – Evotec’s centres of excellence Hamburg (HQ), Abingdon, Toulouse + Lyon Verona (Italy), Princeton, Göttingen, Alderley Park (France) Basel (CH) Watertown, Munich (Germany) (UK) Branford (USA) ~520 employees ~650 employees ~370 + ~100 employe
Slide 11: ONE stop-shop for external innovation
ONE stop-shop for external innovation The business model – EVT Execute & EVT Innovate PAGE 10
Slide 12: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 11
Slide 13: No 1 in quality and R&D efficiency
No 1 in quality and R&D efficiency EVT Execute – Comprehensive integrated service offering PAGE 12
Slide 14: Integrated and systematic working on all modalities
Integrated and systematic working on all modalities M&A/Capabilities upgrade along the value chain since 2010 Biological validation Technological validation Disease relevance & production Target ID/ Compound Assay Screening & Lead Pre-clinical High-end CMC1) validation management development Proteom
Slide 15: Balanced customer mix
Balanced customer mix EVT Execute – Selected KPIs H1 2018 in % Revenues by customer segment ytd1) Customer type ytd1) Revenues by region ytd1) 100% 100% 100% Mid-sized 12% RoW 2% Remaining Pharma 15% 4% 25% Top 11-30 40% Foun- 14% 9% 39% USA customers dations 44% 18% Biotech 24% 37% 13% Top 10 long-
Slide 16: Clear targets, strong outlook for 2018
Clear targets, strong outlook for 2018 EVT Execute – Expected key milestones 2018 New long-term alliances integrating the offering of Aptuit, strategic launch of INDiGO New performance-based integrated technology/disease alliances Expansion of foundations and biotech network in USA/Europe Mi
Slide 17: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 16
Slide 18: Addressing major market needs
Addressing major market needs EVT Innovate – Fields of core expertise NEURONAL DIABETES & FIBROSIS RESPIRATORY DISEASES COMPLICATIONS Market potential Market potential Market potential Market potential > € 100 bn > € 500 bn > € 500 bn > € 100 bn PAIN ONCOLOGY ANTI- INFECTIVES Market potential Market
Slide 19: Building co-owned pipeline with superior platforms and first-in-class targets
Building co-owned pipeline with superior platforms and first-in-class targets EVT Innovate – Initiatives PAGE 18
Slide 20: Approx. 100 co-owned projects across broad range of therapeutic areas
Approx. 100 co-owned projects across broad range of therapeutic areas Co-owned portfolio Co-owned Co-owned Co-owned Value chain Discovery Pre-clinical Clinical > 60 projects > 25 projects > 10 projects Ø € 1-10 m upfront Ø € 150 m mile- Ø Commercials and substantial Ø 8% royalties stones per p
Slide 21: Fully invested co-owned pipeline with approx. programmes
Fully invested co-owned pipeline with approx. 100 programmes Partnership portfolio Molecule Therapeutic Area / Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia BAY-1817080 Chronic cough Phase II start EVT401 Immunology & Inflammation ND1) Oncology Clinical ND1) Oncolo
Slide 22: Strong progress in first-in-class alliances
Strong progress in first-in-class alliances Progress overview (Examples) Chronic kidney disease (“CKD”) Immuno-oncology Highly innovative therapeutics in diabetic Small molecule-based cancer complications (e.g. CKD) immunotherapies to complement checkpoint inhibitors (together with APEIRON Biologics
Slide 23: Partnership in targeted protein degradation
Partnership in targeted protein degradation Celgene & Evotec – Protein degradation Attractive and promising approach addressing “undruggable” targets via targeted protein degradation Leveraging Evotec’s proprietary Panomics platform, including data analytics platform ‘PanHunter’ Activities mai
Slide 24: Long-term strategic solid tumour partnership
Long-term strategic solid tumour partnership Celgene & Evotec – Expansion of relationship into oncology Strategic oncology partnership with Celgene Long-term strategic drug discovery and development partnership to identify new therapeutics in oncology Initial focus on solid tumours, leveraging a
Slide 25: Ground-breaking initiative to combat ID
Ground-breaking initiative to combat ID Sanofi & Evotec – Definitive agreement closed effective 01 July 2018 Pipeline & Innovation Financials Addition of > 100 scientists with Initial, one-time upfront cash significant expertise and payment of € 60 m and capabilities in infectious significant fu
Slide 26: Global leadership in iPSC
Global leadership in iPSC Strong focus on iPSC1) platform “IPS cells can become a power- Disease-specific drugs ful tool to develop new drugs to cure Screening intractable di- Patient seases because they can be made from patients’ somatic cells.” Disease Patient- in a dish specific Shinya iPSCs Yama
Slide 27: Paradigm shifts in neurodegeneration and diabetes
Paradigm shifts in neurodegeneration and diabetes iPSC – Alliances; Progress overview iPSC alliance in neurodegeneration iPSC alliance in diabetes Development of novel therapies for a broad range of Development of beta cell replacement therapy and drug neurodegenerative diseases discovery based on f
Slide 28: Building BRIDGEs over the "Valley of death"
Building BRIDGEs over the “Valley of death“ The funding gap Basic Applied Technology Development Product Commercialisation Market Entry Research Research and Demonstration and Market Development and Market Volume Public Market Funding Level Pension Plan Project Governments Finance Funding Gap Banks/
Slide 29: First-in-class innovation via co-investment strategy
First-in-class innovation via co-investment strategy Innovative building & investing Participation in financing rounds, built on Evotec’s Fibrocor Tx platforms, via strategic investments Approx. € 22 m investments in 2017; long-term commitments with payback horizon > 5 years Attractive € 75 m
Slide 30: Just the beginning for EVT Innovate
Just the beginning for EVT Innovate EVT Innovate – Expected key milestones 2018 New clinical initiations and good progress of clinical pipeline within existing partnerships Expansion of academic BRIDGE network Strong R&D progress within Cure X/Target X platforms and new Innovate partnerships
Slide 31: Agenda
Agenda Overview EVT Execute EVT Innovate Financials & Outlook PAGE 30
Slide 32: Strong performance continues
Strong performance continues Financial history 2014-2018 (e) – Selected performance indicators Total Group revenues (in € m) R&D expenses (in € m) 257.6 18.3 18.1 17.6 164.5 12.7 127.7 89.5 2014 2015 2016 2017 2018(e) 2014 2015 2016 2017 2018(e) Adjusted Group EBITDA (in € m) Gross margin1) (in %) 5
Slide 33: Strong financial performance with new business mix
Strong financial performance with new business mix Condensed income statement H1 2018 – Evotec AG and subsidiaries in € m1) H1 2018 H1 20174) % vs. 2017 New business mix and Revenues 173.8 104.3 67% amortisation following acquisitions resulting in new gross margin Gross margin2) 28.9% 35.7% – setu
Slide 34: Increased momentum in both segments
Increased momentum in both segments Segment information H1 2018 – Evotec AG and subsidiaries in € m1) Inter- EVT EVT segment Evotec New business mix with different Execute Innovate elimination Group margin since Aptuit acquisition Revenues 163.3 32.0 (21.5) 173.8 Growth in EVT Execute driven by
Slide 35: Strong team and shareholders for innovation
Strong team and shareholders for innovation Management & shareholder structure ̴ 9% Roland >3% AGI2) >3% DWS3) Oetker/ROI Management Board Supervisory Board Werner Lanthaler (CEO) Wolfgang Plischke >3% Goldman Sachs Long-time experience in Ex-Bayer >3% Pharma & biotech Bernd Hirsch BlackRock,
Slide 36: Guidance confirmed, R&D guidance updated following ID initiative
Guidance confirmed, R&D guidance updated following ID initiative1) Guidance 2018 Double- 1 digit top- More than 30% Group revenue growth line growth Profitable 2 Adjusted Group EBITDA2) expected to improve by approx. 30% and growing Focused 3 Group R&D expenses of € 35-45 m1) (previously: € 20
Slide 37: Your contact
Your contact: Enno Spillner Chief Financial Officer +49.(0).40.560 81-238 +49.(0).40.560 81-333 Fax enno.spillner@evotec.com