Evotec Se · XETR:EVT
Evotec — Jefferies 2019 Healthcare Conference
37 slides from Evotec's conference presentation, Jun 6, 2019
Slide 1: Partnered Drug Discovery and Development
Evotec Partnered Drug Discovery and Development Evotec SE, Company Presentation, Jefferies 2019 Healthcare Conference, New York, 06 June 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 Evotec – Company snapshot 100+ € 375 m+ € 95 m+ Co-owned pipeline Revenues1) Adjusted Group EBITDA1) programmes with significant milestone & royalty potential 25+ 2,700+ 200+ Years track record Top-class employees Long-term partnerships PAGE 3 1) In FY 2
Slide 5: Medicine of the future will see radical change
Medicine of the future will see radical change Technologies & mega trends to more personalized medicine Next gen sequencing More precise & early diagnostics iPSC & CRISPR gene editing Patient-centric medicine RNAi technologies, CAR-T Digital health Checkpoint inhibitors Predictive & preventive medic
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: Multimodality R&D becomes reality
Multimodality R&D becomes reality 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 9 1) Small
Slide 11: > 2,700 x unique expertise
> 2,700 x unique expertise 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 growing PAGE 10
Slide 12: Agenda
Agenda Overview Partnered drug discovery & development Financials & Outlook PAGE 11
Slide 13: ONE fully integrated platform
ONE fully integrated platform EVT Execute & EVT Innovate IP stays with IP stays customers with Evotec PAGE 12 IP = Intellectual Property
Slide 14: 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 15: With Just.Bio – Even more integrated offering
With “Just.Bio” – Even more integrated offering Comprehensive service panel for external innovation PAGE 14
Slide 16: Building better molecules with better technologies
Building better molecules with better technologies J.DESIGN Technology Platform J.MD™ – Optimising molecules Using machine learning to design and select better biologics through molecular understanding and prediction with Abacus™, an ML software analysis tool JP3® – Optimising process Leverages
Slide 17: Strong and well-balanced global customer mix
Strong and well-balanced global customer mix EVT Execute – Who are our partners? in % RoW Foundations 6 3 Mid-sized Pharma 17 Customer 46 Biotech Revenue by Europe USA 36 61 type Q1 20191) region Q1 20191) 31 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) 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 19
Slide 21: >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 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: 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 Disease- Centers Patient specific drugs “The anonymised data contained within the NURTuRE
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: Opening doors to new indications
Opening doors 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 Neurodegener
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 Total operations personnel: Chemists Biologists ~2,200 ~1,900 ~870 ~ 1,000 ~600 2014 2015 2016 2017 2018 2019(e) Scientific background: Approx. 2/3 Biologists, 1/3 Chemists > 70% of employees with at least one academic qualification
Slide 32: 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 33: Strong base business and important milestones
Strong base business and important milestones Condensed income statement Q1 2019 – Evotec SE and subsidiaries in € m1) Revenue growth mainly due to strong Q1 2019 Q1 2018 % vs 2018 performance in base business and Revenues from contracts with milestone contributions 103.8 81.6 27% customers2) Gr
Slide 34: 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 35: 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 36: PAGE
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Slide 37: 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