Evotec Se · XETR:EVT
Evotec — 18th German Corporate Conference 2019
36 slides from Evotec's conference presentation, Jan 22, 2019
Slide 1: Partnered Drug Discovery and Development
Evotec Partnered Drug Discovery and Development Evotec AG, Company Presentation, 18th German Corporate Conference 2019, Frankfurt, 22 January 2019
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 Partnered drug discovery & development Financials & Outlook PAGE 2
Slide 4: Leading external drug discovery & development
Leading external drug discovery & development Company snapshot 100+ € 350 m+ € 80 m+ Co-owned pipeline Revenues1) Adjusted Group EBITDA1) programmes with significant milestone & royalty potential 25+ 2,500+ 200+ Years track record Top-class employees Long-term partnerships PAGE 3 1) in 2018
Slide 5: Medicine of the future will see radical change
Medicine of the future will see radical change Technologies & mega trends Next gen sequencing More precise & early diagnostics iPSC & CRISPR gene editing Patient-centric medicine RNAi technologies, CAR-T Digital health Checkpoint inhibitors Predictive & preventive medicine & Partners Artificial inte
Slide 6: Productivity challenge will increase
Productivity challenge will increase Development costs vs. average peak sales Development Cost, $ m Sales, $ m 1,992 1,188 +68% 816 465 -43% 2010 2017 2010 2017 Cost per asset increased ~2/3rd since 2010 Average peak sales almost halved since 2010 PAGE 5 Source: Deloitte’s Centre for Health Solution
Slide 7: From fixed to variable costs
From fixed to variable costs R&D outsourcing in € bn ~30-36 ~85-90 ~10 100% 90% 80% 55 5 (~60%) (~50%) 70% ~7 60% (~70%) ~25 Capital (~90%) ∑ 50% Elasticity € ~150 bn 40% 30% 35 5 20% (~50%) (~50%) ~3 10% (~30%) ~3 (10%) 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Discovery Pre-clinical/IND Manuf
Slide 8: Building a co-owned portfolio in partnerships
Building a co-owned portfolio in partnerships Unique strategy and business approach – Action Plan 2022 Own R&D Co-Owned Pipeline Action Plan 2022 Fee for Service PAGE 7
Slide 9: R&D solutions up to IND and CMC manufacturing
R&D solutions up to IND and CMC manufacturing Our core competencies 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: Focus in small molecules and new modalities
Focus in small molecules and new modalities Small molecules, biologics & other modalities in R&D in US$ bn Global pharmaceutical market1), 2) CAGR +7% 918 2017-22e 856 794 >50% 743 670 703 Cell/Gene therapy 8% Biologics Small molecules – 5% EVT Core Expertise 2017 2018e 2019e 2020e 2021e 2022e PAGE
Slide 11: > 2,500 x unique expertise
> 2,500 x unique expertise Global centres of excellence Abingdon, Alderley Park ~650 employees Hamburg, Göttingen, Munich ~550 employees Verona, Basel Princeton, Watertown, Branford Toulouse, Lyon ~650 employees ~150 employees ~550 employees PAGE 10
Slide 12: Output goals define R&D intensity
Output goals define R&D intensity Bayer & Evotec in Endometriosis – Example Scientists Bayer targets 100 Total resource 90 80 Bayer resource 4 INDs 70 40% 3 novel EVT targets 60 more cost first-in- 50 EVT resource efficient1) class 40 targets 30% faster 30 in clinic than 20 industry Academia 10 benc
Slide 13: Agenda
Agenda Overview Partnered drug discovery & development Financials & Outlook PAGE 12
Slide 14: ONE fully integrated platform
ONE fully integrated platform EVT Execute & EVT Innovate IP stays with IP stays customers with Evotec PAGE 13 IP = Intellectual Property
Slide 15: Improving quality and accelerating R&D
Improving quality and accelerating R&D EVT Execute – Selected performance indicators 1,000,000+ >50 >10 Compounds in highly IND – Pre-clinical & Technology acquisitions1) selective library clinical candidates delivered (INDiGO)1) >80% >1.8 >25% Repeat business Years average Faster delivery of data c
Slide 16: No 1 quality and fully integrated R&D services
No 1 quality and fully integrated R&D services Comprehensive service panel for external innovation PAGE 15
Slide 17: Strong and well-balanced global customer mix
Strong and well-balanced global customer mix Who are our partners? in % RoW Foundations 10 5 Mid-sized Pharma 15 Biotech 40 Customer Revenue 50 Europe USA 45 type1) by Region1) 35 Top 20 Pharma PAGE 16 1) Third-party revenues only
Slide 18: Strong portfolio of highest quality partners
Strong portfolio of highest quality partners EVT Execute alliances – Examples Partnership focused Partnership focused Partnership covering Partnership focused Partnership focused Partnership focused Partnership focused on Huntington on various broad range of on DMPK services on infectious on various
Slide 19: Building a co-owned pipeline
Building a co-owned pipeline EVT Innovate – Selected performance indicators 7 >€ 1,000 bn >100 Disease areas of Unmet markets Co-owned pipe- core expertise1) addressed line programmes 10 >10 100% Clinical Co- Unpartnered large First-in-class and best-in- owned assets R&D initiatives class approaches
Slide 20: Creating massive upside with limited cost & risk
Creating massive upside with limited cost & risk Example for co-owned deal structures Performance-based components (Illustrative) PAGE 19
Slide 21: > 100 projects in fully invested pipeline
> 100 projects in fully invested pipeline Partnership portfolio Fibrocor Therap. / Galapagos PAGE 20 1) Not disclosed Note: Several projects have fallen back to Evotec, where Evotec does not intend to run further clinical trials unpartnered, e.g. EVT302, EVT101, …
Slide 22: Co-owned projects with great partners
Co-owned projects with great partners EVT Innovate alliances – Examples Oncology I Chronic kidney disease Oncology Fibrosis Neurodegeneration Picornavirus (“CKD”) Multi-target alliance Small molecule-immuno- Novel mechanisms iPSC-based Respiratory Diabetic complications therapies to complement in mu
Slide 23: Better translation for better drugs
Better translation for better drugs Genetics, biomarkers, and better technologies improving success Human genetics supported targets1) (% success) Biomarker-based patient stratification2) (% success) ~2x ~3x All programmes Genetically supported No biomarker Selection biomarker PAGE 22 1) Source: Nel
Slide 24: Re-defining the drug discovery paradigm
Re-defining the drug discovery paradigm Game-changing platforms for better translation Translational Holistic Superior Models Profiles Knowledge iPSC PanOmics AI & ML platform platform platform1) PAGE 23 1) Artificial Intelligence & Machine learning
Slide 25: Disease-relevant profiles to deliver better drugs
Disease-relevant profiles to deliver better drugs Patient-centric and holistic approach Translational Models Holistic Profiles Superior Knowledge Define relevance Gain PanOmic insight Covert data into drugs Medical records Transcriptomic, proteomics, Hypothesis building Patient iPS cell line
Slide 26: Patient-derived assays as new gold standard
Patient-derived assays as new gold standard World-leading iPSC processes and network “IPS cells can become a power- Disease-specific drugs ful tool to develop new drugs to cure Screening intractable dis- Patient eases because they can be made from patients’ somatic cells.” Disease Patient- in a dish
Slide 27: New cell types open door to new indications
New cell types open door to new indications Patient-derived disease models as starting points Established protocols Under development Motor neurons & Dopaminergic neurons Microglia Neurodevelopmental diseases Neurodegenerative disease Retina pigment epithelia Cortical neurons Retinopathies N
Slide 28: BRIDGEs over the Valley of death
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 Funding Level Public Market Project Governments Finance Funding Gap Banks/Credit Lines Sponsored
Slide 29: Long-term optionality with efficient translation
Long-term optionality with efficient translation BRIDGEs & Equity participations – Examples Equity participation Equity participation Equity participation Equity participation Equity participation Consortium membership Artificial Intelligence for Facioscapulohumeral Metabolic disorders Fibrosis part
Slide 30: Agenda
Agenda Overview Partnered drug discovery & development Financials & Outlook PAGE 29
Slide 31: Culture to integrate talent is key for growth
Culture to integrate talent is key for growth Human Resources DMPK >2,500 Chemists 2,000 Biologists 865 1,000 606 2014 2015 2016 2017 2018(e) 2019(e) Highly skilled workforce 2/3 Biologists, 1/3 Chemists 6.2 years average drug discovery and development experience >80% more than one academic qu
Slide 32: Strong performance continues
Strong performance continues Financial history 2015-2019 (e) – Selected performance indicators Total Group revenues (in € m) R&D expenses (in € m) 257.3 18.3 18.1 17.6 164.5 127.7 2015 2016 2017 2018(e) 2019(e) 2015 2016 2017 2018(e) 2019(e) Adjusted Group EBITDA (in € m) Gross margin1) (in %) 35.6
Slide 33: Strong team and shareholders for innovation
Strong team and shareholders for innovation Management & shareholder structure ̴ 9% Roland >3% AGI1) >3% DWS2) Oetker/ROI Management Board Supervisory Board >3% Goldman Sachs Werner Lanthaler (CEO) Wolfgang Plischke Long-time experience in Pharma Ex-Bayer >3% and biotech Bernd Hirsch BlackRock
Slide 34: Strong outlook for 2019
Strong outlook for 2019 Expected key milestones 2019 Continued strong growth and new integrated service alliances New co-owned partnerships from own R&D New clinical initiations and important progress of co-owned pipeline Important milestones from existing alliances PAGE 33
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e, evotec #RESEARCHNEVERSTOFS
Slide 36: 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