Evotec Se · XETR:EVT
Evotec — Berenberg Conference USA 2019
32 slides from Evotec's conference presentation, May 21, 2019
Slide 1: Partnered Drug Discovery and Development
Evotec Partnered Drug Discovery and Development Evotec SE, Company Presentation, Berenberg Conference USA 2019, Tarrytown, 21 May 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+ € 375.4 m € 95.5 m Co-owned pipeline Revenues1) Adjusted Group EBITDA1) programmes with significant milestone & royalty potential 25+ 2,600+ 200+ Years track record Top-class employees Long-term partnerships PAGE 3 1) In FY 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: 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 7: Building a co-owned portfolio across all modalities
Building a co-owned portfolio across all modalities Unique strategy and business approach Own R&D Co-Owned Pipeline Action Plan 2022 Fee for Service PAGE 6
Slide 8: Just right for Evotec
Just right for Evotec Summary & Key acquisition rationale Modality expansion for end-to-end integrated solutions with Just.Bio • ML (Machine learning)-based tools, smart processes and know-how enable efficient development and manufacturing of biologics • Integrated value chain from discovery to mark
Slide 9: More flexibility for better defined patient populations
More flexibility for better defined patient populations Changes in marketplace Biologics global expected sales Avg. peak sales (SM & Biologics) The Opportunity in $ bn in $ m • Biologics market is large, growing and open for ~500 800 technology improvements • High number of smaller -42% volume produ
Slide 10: Next-stage biologics with truly efficient technologies
Next-stage biologics with truly efficient technologies Overview – Just.Bio (www.justbiotherapeutics.com) • Founded 2014/15, Private, based in Seattle, WA (USA) • Approx. 90 employees • Key Investors: ARCH Venture Partners, Merck & Co., Lilly Asia Ventures, Bill & Melinda Gates Foundation and employe
Slide 11: Adding Seattle, to become a top biologics hotspot
Adding Seattle, to become a top biologics hotspot Global centres of excellence Abingdon, Alderley Park ~680 employees 1st J.POD Hamburg, Göttingen, Munich ~610 employees Verona, Basel Branford, Princeton, Seattle, Watertown Toulouse, Lyon ~660 employees ~140 + approx. 90 employees and ~550 employees
Slide 12: A powerful platform for biologics value chain
A powerful platform for biologics value chain World-class services for biologics development: J.MD™, JP3®, and J.POD® Target Hit- Lead Pre- Academia ID/Vali- Identi- Optimi- Phase I Phase II Phase III Approval Market clinical dation fication sation Molecule Optimisation – J.MD™ Process development –
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 IND1) – Pre-clinical & Technology acquisitions2) selective library clinical candidates delivered (INDiGO)2) 92% >1.8 >25% Repeat business3) Years average Faster delivery of dat
Slide 16: Strong and well-balanced global customer mix
Strong and well-balanced global customer mix EVT Execute – Who are our partners? Revenues by customer segment ytd1) Customer type ytd1) Revenues by region ytd1) (in %) (in %) (in %) 100% 100% 100% Mid-sized RoW 17 3 Pharma Remaining 33 Foundations 6 USA 36 Top 11–30 20 Customers Biotech 46 Europe 61
Slide 17: 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 18: 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 19: Creating massive upside with limited cost & risk
Creating massive upside with limited cost & risk Example for co-owned deal structures Performance-based components (Illustrative) Ø 8% Ø € 200 m Milestones (MS) per project € 5-65 m R&D cost Upfront MS 1 MS 2 MS 3 MS 4 Clinical MS 5 MS 6 MS 7 Total Royalties and/or Start research payments PAGE 18
Slide 20: >100 projects in fully invested pipeline
>100 projects in fully invested pipeline Partnership portfolio Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II EVT201 CNS – Insomnia BAY-1817080 Chronic cough ND1) Chronic cough Ph. II start SGM-10192) Clinical Inflammation (NASH) EVT401 Immunology & Inflammation
Slide 21: 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 20 1) Artificial Intelligence & Machine Learning
Slide 22: World-leading initiative in nephrology
World-leading initiative in nephrology NURTuRE – Kidney disease processes, platforms and networks Biomarker & Disease-affected stratification cell type Patient Human data and kidney- samples on-a-chip Clinical Das Bild kann nicht angezeigt werden. Disease- Centers Patient specific Das Bild kann nich
Slide 23: 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 24: 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 25: 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 26: Agenda
Agenda Overview Partnered drug discovery & development Financials & Outlook PAGE 25
Slide 27: Long-term organic growth reflected in guidance
Long-term organic growth reflected in guidance Financial history 2015-2019 (e) – Selected performance indicators Approx. 10% Group revenue growth1) (in € m) € 30-40 m unpartnered R&D expenses2) in 2019 (in € m) 364.0 263.8 22.9 164.5 18.3 18.1 17.6 127.7 2015 2016 2017 2018(e) 2019(e) 2015 2016 2017
Slide 28: Both segments fully on strategy
Both segments fully on strategy Segment information Q1 2019 – Evotec SE and subsidiaries in € m1) Inter- EVT EVT segment Not Evotec • Revenue growth in Execute Innovate elimination allocated2) Group EVT Execute driven by strong performance Revenues 100.3 18.8 (18.8) 3.5 103.8 in the base business Gr
Slide 29: 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 >5% Goldman Sachs • Werner Lanthaler (CEO) • Wolfgang Plischke Long-time experience in Pharma Ex-Bayer >3% and biotech • Bernd Hirsch BlackRock
Slide 30: 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 • Initiation of new BRIDG
Slide 31: PAGE
e, evotec #RESEARCHNEVERSTOFS
Slide 32: 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