Evotec Se · XETR:EVT
Evotec — H.C. Wainwright 22nd Annual Global Investment Conference 2020
41 slides from Evotec's conference presentation, Sep 14, 2020
Slide 1: Evotec: Partnered Drug Discovery and Development
Evotec Partnered Drug Discovery and Development Evotec SE, Company Presentation, H.C. Wainwright 22nd Annual Global Investment Conference, 14 September 2020
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: Mastering COVID-19
#Researchneverstops Mastering COVID-19 What is paramount in this situation Protect Respect Focus Help Involved in multiple activities to combat COVID-19 NIH-led initiative Accelerating COVID-19 Therapeutic Interventions and Vaccines (“ACTIV”) “COVID R&D”, global initiative, leading repurposing w
Slide 4: Agenda
Agenda Overview Partnered drug discovery & development Financials & Outlook PAGE 3
Slide 5: More than 3,350 unique expertise - global centres of excellence
More than 3,350 x unique expertise Global centres of excellence Abingdon, Alderley Park ~800 employees 1st J.POD1) Hamburg Headquarters, Cologne, Göttingen, Munich ~800 employees Orth an der Donau, Austria ~30 employees Verona Princeton, Seattle, Lyon, Toulouse ~700 employees Branford, Watertown ~33
Slide 6: Leading the external innovation megatrend
Leading the external innovation megatrend Company snapshot – Development from 2015 … 2019 Co-owned programmes with Revenues Adjusted Group EBITDA significant participation in € m in € m 30 100+ 128 446.4 9 123.1 Co-owned companies Top-class employees Unpartnered R&D programmes 0 14 1,000 3,030 10 40
Slide 7: Productivity challenge will further increase
Productivity challenge will further increase Development costs vs. average peak sales Development cost, $ m Peak sales, $ m +67% 1,981 1,188 816 -55% 367 2010 2019 2010 2019 Cost per asset increased ~2/3rd since 2010 Average sales more than halved since 2010 PAGE 6 Source: Deloitte’s Centre for Heal
Slide 8: Variable processes drive productivity and speed
Variable processes drive productivity and speed R&D outsourcing & External Innovation in € bn ~30-38 ~85-90 ~10 100% 90% 80% ~54 ~5 70% (~60%) (~50%) ~7 60% (~70%) ~25 Capital (~90%) ∑ 50% Elasticity € ~140 bn 40% 30% ~36 ~5 20% (~40%) (~50%) ~3 10% (~30%) ~3 (10%) 0% 0% 10% 20% 30% 40% 50% 60% 70%
Slide 9: Integrated processes up to IND and product supply
Integrated processes up to IND and product supply Our focus Pre- Hit- Lead Target ID/ clinical identi- optimi- Phase I Phase II Phase III Approval Market validation Tox fication sation testing PAGE 8
Slide 10: Agenda
Agenda Overview Partnered drug discovery & development Financials & Outlook PAGE 9
Slide 11: One platform, open for tailor-made business formats
One platform, open for tailor-made business formats EVT Execute & EVT Innovate Intellectual Intellectual Property with Property with Partners Evotec PAGE 10
Slide 12: Best expertise and learning curves in all processes
Best expertise and learning curves in all processes “The Sharing Economy” for external innovation services PAGE 11
Slide 13: Better biologics with next generation technologies
Better biologics with next generation technologies Just – Evotec Biologics Highest Quality Higher Speed Integrated Design Approach Cost Efficiency Flexible Capacity PAGE 12
Slide 14: Portfolio across all modalities steadily growing
Portfolio across all modalities steadily growing Our co-owned pipeline of assets Number of projects (owned/co-owned) Small molecules Biologics Gene & Cell therapies Discovery >10 >10 >50 Pre-clinical 3 10 15 Clinical – – 15 Example iPSC HBV Cure P2x3 – derived beta immune A pipeline in cell therapy
Slide 15: Fully invested pipeline, gaining visibility
Fully invested pipeline, gaining visibility Partnership portfolio pre-clinical and clinical Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III EVT201 Insomnia (GABA-A) BAY-1817080 Chronic cough (P2X3) CT7001 Oncology (CDK7) CT7001 Oncology (CDK7) BAY-18170
Slide 16: >100 discovery projects are progressing rapidly
>100 discovery projects are progressing rapidly Partnership research and discovery portfolio Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III 1) Various ND Nephrology 1) ND Nephrology 1) ND PCOS INDY inhibitor Metabolic Various Oncology 1) ND Oncology ND
Slide 17: Re-define health and disease via comprehensive clinical and molecular profiling
Re-define health and disease via comprehensive clinical and molecular profiling The foundation of precision medicine Kidney CNS Multiple Rare Diseases Diseases Lung & Multiple Cancers Tuberculosis Women‘s Infectious Health Diseases PAGE 16 PanOmics Platform: Genomics, Transcriptomics, Proteomics and
Slide 18: Patient-derived assays as new gold standard
Patient-derived assays as new gold standard World-leading iPSC processes and network “IPS cells are a powerful tool to cure intractable diseases because they can be made from patients’ somatic cells.” Shinya Yamanaka, Nobel prize laureate Disease-specific drugs Screening Patient Disease Patient- in
Slide 19: BRIDGEs to link academia with industry
BRIDGEs to link academia with industry Long-term optionality with efficient translation Basic Applied Technology Development Product Commercialisation Market Entry & Research Research and Demonstration and Market Development Market Volume Public Market Funding Level Pension Plan Project Finance Gove
Slide 20: Agenda
Agenda Overview Partnered drug discovery & development Financials & Outlook PAGE 19
Slide 21: Strong long-term growth strategy
Strong long-term growth strategy Financial history 2016-2020 (e) – Selected performance indicators Strong revenue growth (in € m) Adjusted Group EBITDA2) (in € m) 446.9 440 - 480 375.4 123.1 100 - 120 95.5 263.8 57.2 2017 2018 2019 2020(e) 2017 2018 2019 2020(e) High-value unpartnered R&D3) (in € m)
Slide 22: Solid financial performance
Solid financial performance Condensed income statement H1 2020 – Evotec SE and subsidiaries in € m1) H1 2020 H1 2019 % vs. 2019 Strong performance across all Revenues from contracts with customers 231.0 207.1 12 business lines despite loss of Sanofi payments (€ 7.5 m); Just – Evotec Gross margin 2
Slide 23: Strong year ahead - mastering all challenges
Strong year ahead – mastering all challenges Guidance 2020 Good top-line Total Group revenues expected to range from € 440 – 480 m, despite loss of € 20 m subsidy 1 growth expected from Sanofi, and certain COVID-19 challenges1) Adjusted Group EBITDA2) expected to be in the range of € 100 – 120 m, at
Slide 24: 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
Slide 25: Research never stops - our long-term mission
Research never stops Our long-term mission in drug discovery and development We design and apply innovative technologies and processes across all modalities in order to expand access to more precise and effective medicines together with our partners. Manfred Eigen Nobel Prize 1967 PAGE 24
Slide 26: Multimodality is reality
Multimodality is reality Small molecules, biologics & Gene Therapy in R&D Global pharmaceutical market1), 2) in $ bn CAGR 2017-22e +7% 918 856 >50% 794 743 670 703 8% Cell & Gene Tx Biologics Small molecules 5% 2017 2018 2019 2020e 2021e 2022e PAGE 25 1) Small molecules forecast from May 2017 and Bi
Slide 27: Productivity challenge will further increase
Productivity challenge will further increase Development costs vs. average peak sales Development cost, $ m Peak sales, $ m +67% 1,981 1,188 816 -55% 367 2010 2019 2010 2019 Cost per asset increased ~2/3rd since 2010 Average sales more than halved since 2010 PAGE 26 Source: Deloitte’s Centre for Hea
Slide 28: Variable processes drive productivity and speed
Variable processes drive productivity and speed R&D outsourcing & External Innovation in € bn ~30-38 ~85-90 ~10 100% 90% 80% ~54 ~5 70% (~60%) (~50%) ~7 60% (~70%) ~25 Capital (~90%) ∑ 50% Elasticity € ~140 bn 40% 30% ~36 ~5 20% (~40%) (~50%) ~3 10% (~30%) ~3 (10%) 0% 0% 10% 20% 30% 40% 50% 60% 70%
Slide 29: Building long-term partnerships
Building long-term partnerships Our unique business model Own R&D Co-Owned Pipeline Fee for Service PAGE 28
Slide 30: Leading technology platforms improve success rates
Leading technology platforms improve success rates Better translation for better drugs Human genetics supported targets1) Biomarker-based patient stratification2) % success % success ~3x ~2x All programmes Genetically supported No biomarker Selection biomarker PAGE 29 1) Source: Nelson et. al., Nat.
Slide 31: High-performance alliances built on quality & speed
High-performance alliances built on quality & speed Integrated alliances (examples) Oncology, Respiratory Pain, Respiratory, CNS, Oncology, Oncology Diabetes Multiple thera- CKD, Women’s Health Protein Degradation peutic areas Start of new multi- year alliance in Gene Therapy in April 2020 Initiated
Slide 32: J.POD - The Biologics Facility of the Future
J.POD® – The Biologics Facility of the Future J.POD® – relatively low CAPEX and primary OPEX-driven manufacturing January 2020: … Just – Evotec Biologics and MSD enter collaboration around facility of the future QC Lab Utilities Mechanical Warehouse Support J.POD® Manu- Admin & facturing Amenities F
Slide 33: Beta cell therapy - the new standard of care
Beta cell therapy – the new standard of care QRbeta Therapeutics iPSC1)-derived beta cells Tremendous therapeutic & commercial opportunity 1 Potential to develop a cure for insulin-dependent diabetic patients “Edmonton protocol”2) provides unique clinical PoC Excellent foundation to lead the bet
Slide 34: Partnership to build antisense pipeline
Partnership to build antisense pipeline Evotec and Secarna Further expansion of Perfect match of capacities and capabilities multimodality “Autobahn” Joint strategic multi-target drug discovery alliance Global antisense & RNAi thera- Secarna provides proprietary LNAplus™ antisense molecules; Evo
Slide 35: Creating the next major classes of antibacterial drugs
Creating the next major classes of antibacterial drugs Partnership between Evotec, Resolute Therapeutics, and CARB-X Global antibiotics market: Evotec received award of up to $ 8.4 m for development of novel broad- $ 45 bn in 2018 and expected spectrum antibiotic to reach $ 62 bn by 20261) Gra
Slide 36: Operational venture capital approach: portfolio of co-owned equity
Evotec follows an operational venture capital approach, building a portfolio of co-owned equity opportunities Equity participations for co-owned pipeline At equity investments (share ≥ 20% or significant influence) Joint Venture Equity participation Spin-off Equity participation Equity participation
Slide 37: Very strong order book for 2020
Very strong order book for 2020 Global customer mix in % Foundations RoW 7 5 Mid-sized Pharma Europe 28 39 Biotech 45 Revenue by Revenue Customer USA by Region type 50 26 Top 20 Pharma PAGE 36
Slide 38: Scientific excellence meets operational excellence
Scientific excellence meets operational excellence Opening the door to > 500 new top talents in 2019 Total operations personnel Chemists Biologists ~3,000 ~2,600 ~1,900 ~1,000 2016 2017 2018 2019 2020(e) > 80% of employees with at least one academic qualification Approx. 50% of employees have wo
Slide 39: Financials reflect that strategy works
Financials reflect that strategy works Key financials 2019: Condensed income statement (IFRS) in € m1) 2019 2018 % vs. 2018 Revenues from contracts with customers2) 446.4 375.4 +19% Gross margin 29.8% 29.8% – R&D expenses (58.4) (35.6) +64% SG&A expenses (66.5) (57.0) +17% Impairment of intang
Slide 40: Strong team and shareholders for innovation
Strong team and shareholders for innovation Management & shareholder structure1) ~10% T. Rowe Price Group ̴ 9% Roland Oetker/ROI Management Board Supervisory Board ~ 5% AGI3) Werner Lanthaler (CEO) Wolfgang Plischke ̴ 10% Novo Holdings A/S ̴ 5% DWS2) Long-time experience in Ex-Bayer Pharma & bio
Slide 41: Strong news flow to be continued in H2 2020
Strong news flow to be continued in H2 2020 Overview EVT Execute New integrated service alliances in drug discovery & development EVT Innovate New clinical initiations and progress of co-owned pipeline New co-owned partnerships EVT Equity & BRIDGES Initiation of new BRIDGEs New operational
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