UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF NOVEMBER 2023
COMMISSION FILE NUMBER 001-34041
Evotec
SE
(Translation of registrant’s name into English)
Essener Bogen 7
22419 Hamburg
Germany
Tel:
+49 40 560810
(Address of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F: Form 20-F x
Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
On November 8, 2023, Evotec SE (the “Company”) announced
the financial results and corporate updates for the first nine months 2023. The Interim Statement 9M 2023 is attached hereto as Exhibit
99.1. An accompanying press release is attached hereto as Exhibit 99.2.
SIGNATURE
Pursuant to the requirements
of the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
Evotec
SE |
| |
|
|
| |
By: |
/s/ Laetitia
Rouxel |
| |
|
Name:
Laetitia Rouxel |
| |
|
Title:
Chief Financial Officer |
Date: November 8, 2023
EXHIBIT INDEX
Exhibit 99.1
For further information,
please contact: Volker Braun, SVP Head of Global Investor Relations & ESG,
volker.braun@evotec.com, M. +49(0)151.1940 5058, www.evotec.com
 |
interim
STATEMENT 9M 2023 |
| |
HIGHLIGHTS
| 4 | CONTINUATION
OF STRONG GROWTH IN DEMANDING MARKETS |
| 4 | PARADIGM-SHIFTING
OFFERINGS ARE STRONGEST GROWTH DRIVERS |
| 4 | PIPELINE
PROGRESS; E.G. WITH ADVANCED ASSET IN NEURODEGENERATION |
| 4 | ALL
ELEMENTS OF GUIDANCE CONFIRMED |
EVOTEC’S TOPLINE SUCCESS REFLECTS STRONG DEMAND
| 4 | Group
revenues increased by 14% (19% excluding fx-effects) to €580.1 m (9M 2022: €510.8 m); excluding a lower contribution from milestones,
upfronts and license payments, Base business at €575.3 m (9M 2022: €502.8 m) continued to show comparable growth
of 14%. |
| 4 | Costs
of €43.9 m were incurred in 2023 as a direct result of the cyber-incident in early April, including additional external expenditures
and internal recovery contributions. |
| 4 | Total
EVT Execute revenues (incl. intersegment revenues) up 3% to €543.4 m (9M 2022: €526.7 m), strongly affected by cyber-incident;
EVT Innovate revenues up 64% to €199.9 m (9M 2022: €121.9 m). |
| 4 | Adjusted
Group EBITDA totalled €50.2 m (9M 2022: €44.6 m); continued work on key collaborations has partially compensated for underutilised
capacities as a result of the cyber-attack. |
STRENGTHENING ACTIVITIES THROUGH INTEGRATED R&D AND PRECISION
MEDICINE PLATFORMS
| 4 | Multiple
new and extended integrated drug discovery and development agreements all along the drug discovery & development value chain |
| 4 | Extension
and expansion of strategic neurodegeneration partnership with Bristol Myers Squibb (“BMS”), and strong progress in strategic
targeted protein degradation partnership with BMS |
| 4 | Co-owned
pipeline progress: Positive Phase I read-out for EVT8683, start of Phase I trial for EVT401 |
| 4 | Further
value creation through academic partnerships (BRIDGEs): Launch of “LAB eN²” with Novo Nordisk and academic institutions
Harvard University, Mass General Brigham, Yale University, and Beth Israel Deaconess Medical Center |
| 4 | New
partnering agreement to strengthen biotech innovators in shared R&D economy with LabCentral, BioLabs, and MBC BioLabs |
Events after Period-End
| 4 | Launch
of “65LAB”, Evotec’s first BRIDGE partnership in Asia |
| 4 | Co-owned
pipeline updates: Presentation of biomarkers data on EVT801. Exscientia decided to de-prioritise EXS21546 |
|
interim
STATEMENT 9M 2023 |
| |
CORPORATE
| 4 | Opening
of new state-of-the-art biology facility on Dorothy Crowfoot Hodgkin Campus |
Events after Period-End
| 4 | Evotec
receives SBTi validation and approval of its near-term emission reduction targets |
| 4 | Early
October, as part of its Value Protection Plan (VPP) Evotec’s management has engaged into the social process of redeploying its
Chemistry activities out of Marcy (Lyon) |
BUSINESS OUTLOOK FOR FULL-YEAR 2023 AND MID-TERM GOALS 2025 CONFIRMED
| 4 | Group
revenues expected to be in a range of € 750 – 790 m or € 765 – 805 m at constant exchange rates
(2022: € 751 m). |
| 4 | Adjusted
Group EBITDA expected to be in the range of € 60 – 80 m, translating into € 70 – 90 m
at constant exchange rates (2022: € 102 m). |
| 4 | Unpartnered
research and development expenses expected to be in a range of € 60 – 70 m (2022:
€ 70 m). |
| 4 | Mid-term
goals target revenue growth to > € 1,000 m, adjusted EBITDA of ≥ € 300 m and unpartnered
research and development expenses of > € 100 m. |
Due to the criminal cyber-attack discovered on 6 April 2023, productivity was affected in the second and third quarters. In response
to the criminal cyber-attack, Evotec took immediate action to contain and remediate the attack by taking its external-facing systems
offline. This was deemed necessary to protect all the Company’s partners and stakeholders and meant Evotec could ensure that the
integrity of scientific data remained unaffected.
|
interim
STATEMENT 9M 2023 |
| |
FINANCIAL HIGHLIGHTS
The following table provides an overview of the financial performance
in the first nine months of 2023 compared to the same period in 2022. More detailed information can be found on page 6 of this interim
statement.
Key figures of consolidated income statement & segment
information
Evotec SE & subsidiaries – First nine months of
2023
| In T€ | |
Evotec
Group 9M 2023 | | |
Evotec
Group 9M 2022 | |
| Revenues1) | |
| 580,113 | | |
| 510,759 | |
| Costs of revenues | |
| (442,729 | ) | |
| (419,150 | ) |
| Gross profit | |
| 137,384 | | |
| 91,609 | |
| Gross margin in % | |
| 23.7 | % | |
| 17.9 | % |
| | |
| | | |
| | |
| R&D expenses2) | |
| (48,366 | ) | |
| (55,320 | ) |
| SG&A expenses | |
| (127,482 | ) | |
| (109,858 | ) |
| Other operating income (expenses), net4) | |
| 7,635 | | |
| 56,734 | |
| Impairments of intangible assets | |
| (5,131 | ) | |
| — | |
| Net operating income (loss) | |
| (35,960 | ) | |
| (16,836 | ) |
| | |
| | | |
| | |
| Adjusted EBITDA3) | |
| 50,211 | | |
| 44,600 | |
1) Group revenues would have amounted to €
587.8 m at constant exchange rates
2) Includes unpartnered R&D expenses of
€ 45.7 m in 9M 2023 (9M 2022: € 50.7 m)
3) Net income (loss) adjusted for interest,
taxes, depreciation and amortization of intangibles, impairments on goodwill and other intangible and tangible assets, total non-operating
results, change in contingent consideration (earn-out) and items that in magnitude, nature or occurrence would distort the presentation
of the financial performance of the Group.
4) As of Q3, the external, one-off related
cyber expenses of € 11.9 m (€ 7.8 m as of Q2) are excluded from Adjusted Group EBITDA. Internal costs of recovery are included
in Adjusted Group EBITDA.
The following table details Evotec’s segment revenues and operating
income (loss) for the nine months ended 30 September 2023:
| In T€ |
|
EVT
Execute |
|
|
EVT Innovate |
|
|
Intersegment
Eliminations |
|
|
Evotec Group
9M 2023 |
|
| Revenues |
|
|
543,372 |
|
|
|
199,906 |
|
|
|
(163,165 |
) |
|
|
580,113 |
|
| Operating result |
|
|
(40,078 |
) |
|
|
4,118 |
|
|
|
— |
|
|
|
(35,960 |
) |
|
interim
STATEMENT 9M 2023 |
| |
OPERATIONAL HIGHLIGHTS
Multiple new and extended integrated drug discovery and development
agreements all along the drug discovery & development value chain
In the first nine months of 2023, Evotec continued to further expand
its operational activities based on its fully integrated end-to-end shared R&D and precision medicine platforms. The Company entered
into several new partnerships and extended existing alliances across the various stages of drug discovery and development, as well as
across modalities and business areas e.g.:
| · | In March, BMS and Evotec extended and expanded the neurodegeneration partnership, originally signed in 2016, for an additional
8 years. In July, Evotec announced that BMS has exercised its option to enter into an exclusive global licence agreement, which covers
selected discovery programmes that were developed and progressed within the neurodegeneration partnership. Under the licence agreement,
BMS has selected an undisclosed number of programmes that were rapidly developed and progressed using Evotec’s precision medicine
platforms for further development within the expanded collaboration. Evotec receives a $ 40 m payment, recognised over time, and is eligible
to earn performance milestone payments, as well as tiered royalties up to low double-digit percentages on product sales. In September,
BMS presented updates on BMS-986419/EVT8683 at its R&D Day and announced the intentions to proceed into a first clinical Phase II
trial in 2024. |
| · | In September, Evotec, LabCentral, a launchpad for life science and biotech start-ups, BioLabs, an international membership
based network of shared lab and office facilities, and MBC BioLabs, providers of co-working laboratory space, announced an agreement to
boost early-stage innovations through access to Evotec’s shared end-to-end R&D platform. |
Further value creation through academic partnerships (BRIDGEs)
In September, Evotec and Novo Nordisk announced “LAB eN²”,
a translational drug discovery accelerator that aims to nurture early research from academic institutions into novel therapeutics. The
focus is on addressing unmet need in cardiometabolic diseases as well as rare blood and rare endocrine disorders. LAB eN² is
an engagement model that combines Evotec’s multimodality drug discovery and pre-clinical development capabilities with Novo Nordisk’s
therapeutic, clinical, and commercial expertise. LAB eN² has already signed on four academic institutions to participate: Harvard
University, Mass General Brigham, Yale University, and Beth Israel Deaconess Medical Center.
BRIDGEs after period-end
In October, Evotec announced that the Company has entered into a new
BRIDGE partnership with Lightstone Ventures, ClavystBio, Leaps by Bayer, Polaris Partners, and the Polaris Innovation Fund. “65LAB”,
Evotec’s first academic BRIDGE in Asia, aims to advance drug discovery and the creation of new therapeutics companies in Singapore.
In the same month, Evotec announced a translational BRIDGE partnership with Pre-Amp, a new venture studio created by Amplitude Ventures.
Co-owned pipeline progress
In August, a clinical Phase I study for EVT401, a P2X7 receptor antagonist
for the treatment of inflammatory conditions originally developed by Evotec, then licensed to Zhejiang CONBA Pharmaceutical Co., was initiated.
In September, BMS presented positive Phase I data for BMS-986419 /
EVT 8683 and announced plans to initiate a Phase II trial in ALS in 2024.
|
interim
STATEMENT 9M 2023 |
| |
Pipeline progress after period-end
In October, Kazia Therapeutics (“Kazia”) presented biomarkers
data on EVT801 at ESMO Congress 2023. Evotec first announced a partnership with Kazia for clinical development of EVT801 in April 2021
and in November of the same year, Kazia announced that EVT801 entered clinical development with the first patient enrolled in a first-in-human
Phase I trial.
CORPORATE
Opening of new state-of-the-art biology facility on Dorothy Crowfoot
Hodgkin Campus
In September, Evotec celebrated the Grand Opening of a new facility,
Building 95 (“B95”), on the Company’s Dorothy Crowfoot Hodgkin Campus at Milton Park. Evotec has developed B95 to accommodate
new state-of-the-art biology laboratories, a range of collaborative workspaces and meeting rooms as well as a restaurant for employees.
The B95 facility was designed with a particular focus on sustainability, and incorporates air source heat pumps, a demand-based laboratory
ventilation system, as well as low energy lighting and appliances. These measures will support Evotec in achieving the Company’s
carbon net-zero targets.
Evotec receives approval
for its near-term targets by SBTi
In October after Period-End,
the Science Based Targets initiative (“SBTi”) informed Evotec that the Company’s greenhouse gas emissions reduction
targets have been validated and approved. The science-based near-term targets are compliant with SBTi criteria and recommendations and
consistent with levels required to meet the goals of the Paris Agreement. The SBTi has classified Evotec’s scope 1 and 2 target
ambition and has determined that it is in line with a 1.5°C trajectory.
REPORT ON THE FINANCIAL SITUATION AND RESULTS
1. Results of operations
During the nine months ended 30 September 2023 Group revenues
increased by 14% to €580.1 m compared with the same period of the previous year (9M 2022: €510.8 m). The increase compared with
prior-year period is based on the diversified underlying business mix in a challenging environment, supported by two effects: BMS/Celgene
programs and delivery of work packages as part of the new Technology-Partnership with Sandoz. Excluding the recognition of negative fx
-effects, Group revenues grew by 15% from €510.8 m to €587.8 m. Growth of the base business was 14% from €502.8 m
in 9M 2022 to €575.3 m in the first nine months of 2023. Evotec received milestone, upfront and license payments of €4.8 m
(9M 2022: €8.1 m). Just - Evotec Biologics contributed €74.1 m during the nine months ended 30 September 2023
versus €27.9 m in the comparable prior year period, nearly tripling its revenues.
The Costs of revenue for the nine months ended 30 September 2023
amounted to €442.7 m (9M 2022: €419.2 m) yielding a gross margin of 23.7% (9M 2022: 17.9%). The increase of margin was supported
from signing of cooperations and partnerships with BMS and Sandoz. Excluding effects related to the capacity build-up at Just –
Evotec Biologics, total gross margin amounted to 26,7% versus 27,3% during the same period last year.
R&D expenses were €48.4 m, compared to €55.3 m
in the nine months ended 30 September 2022 (-13%), reflecting the impacted business activity due to the cyber-incident in the second
quarter leading to a temporary reduction of R&D costs. Unpartnered R&D expenses decreased by 10% (€45.7 m vs.
9M 2022: €50.7 m) and partnered R&D expenses were 42% lower than in the comparable reporting period in the previous
year (9M 2023: €2.7 m versus 9M 2022: €4.6 m).
|
interim
STATEMENT 9M 2023 |
| |
SG&A expenses for the nine months ended 30 September 2023
amounted to €127.5 m and were thus €17.6 m or 16% higher compared to last year (9M 2022: €109.9 m). Expanding Evotec’s
number of people to facilitate further growth as well as strengthening the end-to-end global processes and systems were the main drivers.
For the nine months ended 30 September 2023, other operating
income amounted to €52.3 m, compared to €58.2 m for the comparable prior year period. R&D tax credits increased to €32.6 m
(9M 2022: €29.8 m). However, recharges of Sanofi for ID Lyon, which ends in 2023 as planned, decreased to €16.9 m
in 9M 2023 (9M 2022: €24.9 m). Key drivers of other operating expenses in the amount of €44.7 m (9M 2022:
€1.5 m) have been related to managing the impact of the cyber-attack since 6 April. These costs are related to third party involvement
like consultants and legal advisors (€11.9 m) as well as work contributed by Evotec staff (€32.0 m) and totalled to €43.9 m
as of 30 September 2023. Internal costs reported under Other operating expenses related mainly to time spent in IT and other departments
on recovering after the cyber-attack. Further, the company recognized €5.1 m of impairment on intangible assets in the second quarter.
The improvement in net income (loss) before taxes of €(56.6)
m (9M 2022: €(136.4) m was mainly related to a less pronounced loss on investment in equity instruments re-evaluation in the amount
of €(11.1) m (9M 2022 €(126.7) m), predominantly for Evotec’s equity position in Exscientia plc . In 9M 2023,
Exscientia's ordinary share price decreased by 15% from US$ 5.33 at the end of 2022 to US$ 4.52 as of 29 September 2023.
Adjusted Group EBITDA for the nine months ended 30 September 2023
amounted to €50.2 m (9M 2022: €44.6 m) despite missed revenues after the cyber-attack. The external, one-off related cyber expenses
of €11.9 m (€7.8 m as of Q2) are excluded from Adjusted Group EBITDA. One-off burdens in Q3 2023 were mitigated due to improved
cost structures, therefore adjusted EBITDA in Q3 2023 reached €16.3 m versus €11.0 m in Q3 2022. 9M 2023
adjusted EBITDA, excluding Just – Evotec Biologics, would have reached €55.9 m (9M 20222: €84.6 m).
The net income (loss) as of 30 September 2023 amounted
to €(67.8) m (9M 2022: €(148.5) m), almost exclusively due to the less pronounced loss on revaluation of investments in equity
instruments versus last year - as mentioned above.
2. Increasing contribution from innovative platforms
Total revenues, consisting of revenues from EVT Execute and EVT
Innovate, showed progress over all business areas. In the EVT Execute segment revenues (incl. intersegment revenues) increased
by 3% to €543.4 m (9M 2022: €526.7 m), supported by increased revenues of Just – Evotec Biologics, which compensated for
a significant share of missed revenues related to the cyber incident. Intersegment revenues amounted to €163.2 m (9M 2022:
€137.9 m), which indicates the convergence of Evotec’s offering based on our fully integrated platform. Intersegment sales
are an important indicator of the progress initiated within EVT Innovate where Evotec maintains rights to participate in the success
of partnered projects in the future.
Costs of revenue of EVT Execute were at €460.5 m in the nine months
ended 30 September 2023 (9M 2022: €441.3 m), corresponding to a gross margin of 15.3% (9M 2022: 16.2%). The decrease was mainly
due to the contribution of Just - Evotec Biologics. EVT Execute gross margin excluding Just - Evotec Biologics (US) would have reached
24.7% in 9M 2023, a 30 basis point change compared to 25.0% in the same period 2022. R&D expenses came in at €2.8 m
(9M 2022: €4.2 m), SG&A expenses increased to €102.1 m (9M 2022: €88.2 m), mainly caused by an increase in headcount
and higher consultancy expenses. For the nine months ended 30 September 2023, other operating income amounted to €27.9
m, compared to €26.5 m for the comparable prior year period. The impact of the cyber-attack is visible in line with other operating
expenses which amounted to €40.9 m (9M 2022: €1.2 m) and includes internal as well as external costs. The adjusted EBITDA
of the segment reached €42.1 m (9M 2022: €75.8 m), caused by the loss of operation as a consequence of the cyber-attack.
|
interim
STATEMENT 9M 2023 |
| |
Revenues in the EVT Innovate segment increased to €199.9
m (9M 2022: €121.9 m). This growth of 64% was mainly driven by high base revenues from the collaboration with BMS. Costs of revenues
of €(136.4) m were incurred in the first nine months of 2023. In the same period, gross margin significantly increased to 31.8% from
14.2% in the first nine months of 2022. Research and development expenses went down to €54.7 m for the first nine months of 2023,
compared to €62.2 m for the same period of 2022. The reduction was owed to the cyber-attack at the beginning of April. The increase
in SG&A expenses (9M 2023: €25.4 m vs. 9M 2022: €21.7 m) was mainly caused by expanded business development activities.
Other operating expenses increased to €3.7 (9M 2022: €0.2 m), mainly as a result of the cyber-attack. For the nine months
ended 30 September 2023, other operating income amounted to €24.4 m, compared to €31.7 m, for the comparable prior
year period. The EVT Innovate adjusted EBITDA has improved to €8.2 m (9M 2022:€(31.2) m).
3. Financing and financial position
Cash flow provided by operating activities in the first nine
months was €15.2 m compared with €236.6 m in the first nine months of 2022. The comparable figure last year was driven by a
$200 m upfront payment from BMS Protein Degradation collaboration. This year’s figure is negatively affected by the cyber-incident,
offset by various larger payments in connection with the BMS collaborations in Neuro and Protein Degradation which were received in the
9M reporting period.
Net cash flow provided from (used in) investing activities for
the nine months ended 30 September 2023 amounted to €13.0 m (9M 2022: €(435.0) m), mainly driven by a positive effect of
€203.1 m from proceeds from sale of current investments. Purchases/Proceeds from current investments (net) amounted to €181.6
m (9M 2022: €203.2 m) and were mainly used to fund the capital expenditures. Capital expenditure amounted to €150.0 m (9M 2022:
€157.2 m) of which a majority pertains to investments in Just-Evotec Biologics. Apart from these growth projects, capital expenditures
include investments focused on Global Drug Discovery (GDD), Drug Discovery Services (DDS), and energy-efficiency improvements.
Net cash provided by (used in) financing activities was €53.8
m in the nine months ended 30 September 2023 (9M 2022: €(50.5) m). Proceeds from loans amounted to €151.4 m, partly
offset by repayments of lease obligations and repayments of loans.
Cash and cash equivalents amounted to €499.4 m as of 30
September 2023 (31. Dezember 2022: €415.2 m ). Total Liquidity decreased to €613.4 m (31 December 2022: €718.5
m).
4. Assets, liabilities, and stockholders’ equity
Assets
Between 31 December 2022 and 30 September 2023, total
assets decreased slightly by €(2.7) m to €2,254.5 m (31 December 2022: €2,257.2 m).
Investments, and other current financial assets including derivatives
amounted to €119.8 m (31 December 2022: €314.8 m). This significant decrease was a result of the sale of current
investments as part of the financing of our capacity expansion.
Trade and other receivables and accounts receivable from associated
companies and other long-term investments decreased in the nine months ended 30 September 2023 by €37.8 m to €134.0 m (31 December 2022:
€171.8 m). Due to the receipt of the payments from BMS Neuro and Sandoz in July 2023, Days Sales Outstanding (DSO) of
63 days were significantly reduced from 96 as of 30 June 2023.
|
interim
STATEMENT 9M 2023 |
| |
Contract assets and Inventories remained relatively stable with
€59.0 m versus €60.3 m as of 31 December 2022.
Current tax assets increased from €54.4 m as per 31 December 2022
to €58.3 m as per 30 September 2023 mainly related to increased receivables relating to R&D tax credits in Italy.
Prepaid expenses and other current assets as of 30 September 2023
increased by €11.6 m to €68.7 m compared to 31 December 2022 (€57.1 m) primarily due to an increase in VAT receivable.
Property, plant, and equipment increased by €113.7 m to
€763.9 m (31 December 2022: €650.2 m) caused by capital expenditures for site expansions, significantly exceeding depreciations.
Intangible assets and Goodwill decreased by €(7.6) m compared
with 31 December 2022, to €291.1 m (31 December 2022: €298.6 m), primarily due to straight-line amortisation of definite
life intangibles and fx-effects.
Non-current tax assets increased to €98.7 m (31 December 2022:
€70.3 m) mainly due to receivables relating to R&D tax credits in France and Prepayments regarding Corporate Income Tax and Trade
Tax in Germany.
Long-term investments amounted to €151.6 m (31 December 2022:
€154.1 m). This decrease resulted mainly from the revaluation of Evotec’s stake in Exscientia plc.
Liabilities
Trade and other payables decreased marginally by €(0.5)
m in the nine months ended 30 September 2023 to €96.8 m (31 December 2022: €97.3 m), despite continued growth.
Provisions decreased by €(7.6) m to €63.2 m (31 December 2022:
€70.8 m) due to annual bonus payments in the second quarter 2023.
Other current financial liabilities increased to €144.3
m (31 December 2022: €23.5 m) mainly due to reclassification of long-term financial liabilities.
Current and non-current contract liabilities decreased by €(22.0)
m to €307.1 m (31 December 2022: €329.1 m) due to the recognition of the prepayments from BMS.
Net debt leverage ratio of (2.8)x adjusted EBITDA, excl. IFRS
16 effect and (4.6)x incl. IFRS 16 declined versus Q4 2022 due to meaningful investments in capacity expansion.
Stockholders’ equity
As of 30 September 2023, Evotec’s overall capital structure
remained at a similar level compared with the end of 2022. Total stockholders’ equity decreased by €46.4 m to €1,140.8
m (31 December 2022: €1,187.2 m). Due to the exercise of stock options and Share Performance Awards, a total amount of 177,185,736
shares were issued and outstanding with a nominal value of €1.00 per share as of 30 September 2023.
Evotec’s equity ratio as of 30 September 2023 decreased
to 50.6% (31 December 2022: 52.6%) which is mainly driven by a net loss of €67.8 m.
5. Human Resources
Employees
Headquartered in Hamburg, Germany, the Evotec Group employs 5,086
people globally as of 30 September 2023 (31 December 2022: 4,952 employees), which corresponds to a total increase of
2% compared to the prior year’s end. Overall, the number of employees grew by 134 in the first nine months of 2023 (9M 2022: 517).
|
interim
STATEMENT 9M 2023 |
| |
UNAUDITED
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS1
Evotec SE and Subsidiaries
Consolidated interim statement of financial position as of 30
September 2023
| in T€
except share data | |
as
of 30 September 2023 | | |
as
of 31 December 2022 | |
| ASSETS | |
| | |
| |
| Current Assets: | |
| | |
| |
| — Cash and
cash equivalents | |
499,366 | | |
415,155 | |
| — Investments | |
114,002 | | |
303,334 | |
| — Trade and other receivables | |
134,038 | | |
171,798 | |
| — Contract assets | |
27,067 | | |
30,516 | |
| — Inventories | |
31,906 | | |
29,825 | |
| — Current tax asset | |
58,266 | | |
54,422 | |
| — Other current financial
assets | |
5,812 | | |
11,494 | |
| —
Prepaid expenses and other current assets | |
68,741 | | |
57,126 | |
| Total
current assets | |
939,198 | | |
1,073,671 | |
| Non-current assets: | |
| | |
| |
| — Long term financial investments and other long
term assets | |
137,134 | | |
138,074 | |
| — Investments in associates and Joint ventures | |
14,486 | | |
16,043 | |
| — Property, plant, and
equipment | |
763,899 | | |
650,201 | |
| — Intangible assets and Goodwill | |
291,055 | | |
298,638 | |
| — Deferred tax assets | |
10,052 | | |
10,327 | |
| —
Non-current tax assets | |
98,685 | | |
70,293 | |
| Total
non-current assets | |
1,315,311 | | |
1,183,576 | |
| Total
assets | |
2,254,509 | | |
2,257,247 | |
| | |
| | |
| |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| | |
| |
| Current Liabilities | |
| | |
| |
| — Current
financial liabilities | |
144,287 | | |
23,468 | |
| — Trade and other payables | |
96,774 | | |
97,277 | |
| — Contract liabilities | |
108,054 | | |
122,922 | |
| — Deferred income | |
11,265 | | |
13,748 | |
| — Provisions | |
46,442 | | |
54,410 | |
| — Current income tax liabilities | |
7,727 | | |
8,987 | |
| —
Other current liabilities | |
19,495 | | |
16,894 | |
| Total
current liabilities | |
434,045 | | |
337,706 | |
| Non-current liabilities: | |
| | |
| |
| — Long term financial
liabilities | |
444,455 | | |
490,293 | |
| — Deferred tax liabilities | |
18,603 | | |
18,524 | |
| — Provisions | |
16,711 | | |
16,427 | |
| — Contract liabilities | |
199,025 | | |
206,136 | |
| —
Other non-current liabilities | |
851 | | |
977 | |
| Total
non-current liabilities | |
679,645 | | |
732,357 | |
| Stockholders’ equity: | |
| | |
| |
| — Share capital | |
177,186 | | |
176,953 | |
| — Additional paid-in capital | |
1,446,469 | | |
1,440,010 | |
| — Retained Earnings | |
(482,836 | ) | |
(429,779 | ) |
| Equity attributable to shareholders
of Evotec SE | |
1,140,819 | | |
1,187,184 | |
| —
Non-controlling interest | |
— | | |
— | |
| Total
stockholders' equity | |
1,140,819 | | |
1,187,184 | |
| Total
liabilities and stockholders’ equity | |
2,254,509 | | |
2,257,247 | |
1) Each financial statement line item is rounded individually.
Totals and subtotals may therefore deviate slightly from the sum of the individual items.
|
interim
STATEMENT 9M 2023 |
| |
Evotec SE and Subsidiaries
Consolidated interim income statement for the period from 1 January to
30 September 2023
| in T€ except share and per share data | |
Nine months
ended 30
September 2023 | | |
Nine months
ended 30
September 2022 | | |
Three months
ended 30
September 2023 | | |
Three months
ended 30
September 2022 | |
| Revenue | |
580,113 | | |
510,759 | | |
196,278 | | |
173,884 | |
| Costs of revenue | |
(442,729 | ) | |
(419,150 | ) | |
(158,454 | ) | |
(145,464 | ) |
| Gross profit | |
137,384 | | |
91,609 | | |
37,823 | | |
28,420 | |
| | |
| | |
| | |
| | |
| |
| Operating income (expenses) | |
| | |
| | |
| | |
| |
| — Research and development expenses | |
(48,366 | ) | |
(55,320 | ) | |
(17,503 | ) | |
(18,482 | ) |
| — Selling, general and administrative expenses | |
(127,482 | ) | |
(109,858 | ) | |
(39,290 | ) | |
(42,462 | ) |
| — Other operating income | |
52,290 | | |
58,188 | | |
13,804 | | |
19,330 | |
| — Other operating expenses | |
(44,655 | ) | |
(1,455 | ) | |
(7,010 | ) | |
(335 | ) |
| — Impairments | |
(5,131 | ) | |
— | | |
(12 | ) | |
— | |
| Total operating income (expenses) | |
(173,344 | ) | |
(108,445 | ) | |
(50,011 | ) | |
(41,949 | ) |
| Operating income (loss) | |
(35,960 | ) | |
(16,836 | ) | |
(12,187 | ) | |
(13,529 | ) |
| | |
| | |
| | |
| | |
| |
| Non-operating income (expense) | |
| | |
| | |
| | |
| |
| Gain (loss) on investment in equity instruments reevaluation | |
(11,065 | ) | |
(126,658 | ) | |
(16,632 | ) | |
(28,940 | ) |
| Share of profit (loss) of associates and Joint ventures | |
(11,608 | ) | |
(11,240 | ) | |
(4,459 | ) | |
(3,612 | ) |
| Financial income | |
8,160 | | |
5,777 | | |
2,482 | | |
3,756 | |
| Financial expense | |
(8,558 | ) | |
(10,872 | ) | |
(3,521 | ) | |
(3,055 | ) |
| Other non-operating income (expense) | |
2,463 | | |
23,396 | | |
4,401 | | |
2,016 | |
| Total non-operating income (expense) | |
(20,608 | ) | |
(119,597 | ) | |
(17,729 | ) | |
(29,835 | ) |
| | |
| | |
| | |
| | |
| |
| Net Income (loss) before taxes | |
(56,568 | ) | |
(136,433 | ) | |
(29,916 | ) | |
(43,364 | ) |
| — Income taxes | |
(11,215 | ) | |
(12,021 | ) | |
(9,039 | ) | |
(3,911 | ) |
| Total taxes | |
(11,215 | ) | |
(12,021 | ) | |
(9,039 | ) | |
(3,911 | ) |
| Net income (loss) | |
(67,782 | ) | |
(148,454 | ) | |
(38,955 | ) | |
(47,275 | ) |
| | |
| | |
| | |
| | |
| |
| thereof attributable to: | |
| | |
| | |
| | |
| |
| Shareholders of Evotec SE | |
(67,782 | ) | |
(148,454 | ) | |
(38,955 | ) | |
(47,275 | ) |
| | |
| | |
| | |
| | |
| |
| Weighted average shares outstanding | |
176,910,122 | | |
176,702,653 | | |
176,935,744 | | |
176,702,653 | |
| Net result per share (basic) | |
(0.38 | ) | |
(0.84 | ) | |
(0.22 | ) | |
(0.27 | ) |
| Net result per share (diluted) | |
(0.38 | ) | |
(0.84 | ) | |
(0.22 | ) | |
(0.27 | ) |
|
interim
STATEMENT 9M 2023 |
| |
Evotec SE and Subsidiaries
Condensed consolidated interim statement of cash flows for the
nine months ended 30 September 2023
| in T€ | |
Nine months
ended 30
September 2023 | | |
Nine months
ended 30
September 2022 | |
| Cash flows from operating activities: | |
| | |
| |
| — Net income (loss) | |
(67,782 | ) | |
(148,454 | ) |
| — Adjustments to reconcile net income to net cash provided by operating activities | |
108,754 | | |
241,483 | |
| — Change in assets and liabilities | |
(25,788 | ) | |
143,604 | |
| Net cash provided by operating activities | |
15,184 | | |
236,633 | |
| | |
| | |
| |
| Cash flow from investing activities: | |
| | |
| |
| — Purchase of current investments | |
(21,439 | ) | |
(308,504 | ) |
| — Purchase of investments in affiliates net of cash acquired | |
(1,650 | ) | |
(23,000 | ) |
| — Purchase of investments in associated companies and other long-term investments | |
(14,155 | ) | |
(47,746 | ) |
| — Purchase of property, plant, and equipment | |
(149,956 | ) | |
(157,210 | ) |
| — Purchase of convertible loan | |
(6,047 | ) | |
(4,127 | ) |
| — Proceeds from sale of current investments | |
203,062 | | |
105,303 | |
| — Dividends received | |
— | | |
250 | |
| — Acquisitions, cash acquired | |
3,217 | | |
| |
| Net cash provided by (used in) investing activities | |
13,032 | | |
(435,034 | ) |
| | |
| | |
| |
| Cash flow from financing activities: | |
| | |
| |
| — Proceeds from capital increase | |
— | | |
355 | |
| — Proceeds from option exercise | |
233 | | |
344 | |
| — Proceeds from loans | |
151,374 | | |
— | |
| — Repayment of lease obligation | |
(12,983 | ) | |
(14,235 | ) |
| — Repayment of loans | |
(84,775 | ) | |
(36,918 | ) |
| Net cash provided by (used in) financing activities | |
53,848 | | |
(50,454 | ) |
| | |
| | |
| |
| Net increase (decrease) in cash and cash equivalents | |
82,065 | | |
(248,855 | ) |
| Exchange rate difference | |
2,147 | | |
13,442 | |
| Cash and cash equivalents at beginning of year | |
415,155 | | |
699,326 | |
| Cash and cash equivalents at end of the period | |
499,366 | | |
463,913 | |
|
interim
STATEMENT 9M 2023 |
| |
FORWARD-LOOKING STATEMENTS
This interim statement contains forward-looking
statements concerning future events. Words such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “might,” “plan,” “potential,” “should,”
“target,” “would” and variations of such words and similar expressions are intended to identify forward-looking
statements. Such statements include comments regarding Evotec’s expectations for revenues, Adjusted Group EBITDA and unpartnered
R&D expenses. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed
reasonable by Evotec at the time these statements were made. No assurance can be given that such expectations will prove to have been
correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently
subject to significant uncertainties and contingencies, many of which are beyond the control of Evotec. Factors that could cause actual
results to differ are discussed under the heading "Risk Factors" in our Annual Report for the year ended December 31, 2022.
Evotec expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in Evotec’s expectations with respect thereto or any change in events, conditions or circumstances
on which any statement is based.
NON-IFRS METRICS
This interim report includes certain financial
measures and metrics not based on IFRS, including Adjusted Group EBITDA. We define Adjusted EBITDA as net income (loss) adjusted for interest,
taxes, depreciation and amortization of intangibles, impairments on goodwill and other intangible and tangible assets, total non-operating
results and change in contingent consideration (earn-out).
Adjusted EBITDA should not be considered in isolation
from, or as a substitute for, financial information prepared in accordance with IFRS. Adjusted EBITDA is a non-IFRS measure presented
as a supplemental measure of our performance. Adjusted EBITDA should not be considered as an alternative to net income as a measure of
financial performance. Adjusted EBITDA is presented because it is a key metric used by our Management Board to assess our financial performance.
Management believes Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that
do not relate directly to the performance of the underlying business. Our definition of this non-IFRS financial measure may not be comparable
to similarly titled measures of other companies, thereby reducing the usefulness of our Adjusted EBITDA as a tool for comparison.
The following table shows the reconciliation of net income to Adjusted
EBITDA
| in T€ | |
Evotec Group
9M 2023 | | |
Evotec Group
9M 2022 | |
| Net income | |
(67,782 | ) | |
(148,454 | ) |
| - Interest expense (net) | |
398 | | |
5,846 | |
| - Tax expense | |
11,215 | | |
12,021 | |
| - Depreciation of intangible assets | |
63,719 | | |
55,114 | |
| - Amortization of intangible assets | |
5,432 | | |
7,098 | |
| EBITDA | |
12,982 | | |
(68,375 | ) |
| - Impairment of intangible assets | |
5,131 | | |
— | |
| - Measurement gains from investments | |
11,065 | | |
126,658 | |
| - Share of loss of associates accounted for using the equity method | |
11,608 | | |
11,240 | |
| - Foreign currency exchange (loss) gain, net | |
175 | | |
(23,501 | ) |
| - Other non-operating income, net | |
(2,638 | ) | |
(646 | ) |
| - Change in contingent consideration (earn-out) | |
— | | |
(776 | ) |
| - One-Off External Cyber-related Costs | |
11,889 | | |
— | |
| Adjusted EBITDA | |
50,211 | | |
44,600 | |
Exhibit 99.2
Evotec SE reports results
for the first nine months 2023 and provides corporate update
| 4 | CONTINUATION
OF STRONG GROWTH IN DEMANDING MARKETS |
| 4 | PARADIGM-SHIFTING
OFFERINGS ARE STRONGEST GROWTH DRIVERS |
| 4 | PIPELINE
PROGRESS, e.g. WITH ADVANCED ASSET IN NEURODEGENERATION |
| 4 | ALL
ELEMENTS OF GUIDANCE CONFIRMED |
Hamburg, Germany, 08 November 2023:
Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, ISIN:
DE0005664809; NASDAQ: EVO) today announced the financial results and corporate updates for the first nine months 2023.
HIGHLIGHTS
EVOTEC’S TOPLINE SUCCESS REFLECTS STRONG DEMAND
| 4 | Group
revenues increased by 14% (19% excluding fx-effects) to € 580.1 m (9M 2022:
€ 510.8 m); excluding a lower contribution from milestones, upfronts and license
payments, Base business at € 575.3 m (9M 2022: € 502.8 m) continued
to show comparable growth of 14%. |
| 4 | Costs
of € 43.9 m were incurred in 2023 as a direct result of the cyber-incident
in early April, including additional external expenditures and internal recovery contributions. |
| 4 | Total
EVT Execute revenues (incl. intersegment revenues) up 3% to € 543.4 m
(9M 2022: € 526.7 m), strongly affected by cyber-incident; EVT Innovate
revenues up 64% to € 199.9 m (9M 2022: € 121.9 m). |
| 4 | Adjusted
Group EBITDA increased by 13% to € 50.2 m (9M 2022: € 44.6 m); continued
work on key collaborations has partially compensated for underutilised capacities as a result
of the cyber-attack. |
For further information, please contact: Volker Braun,
SVP Head of Global Investor Relations & ESG,
volker.braun@evotec.com, M. +49.(0)151.1940 5058, www.evotec.com
 |
NEWS RELEASE |
| |
STRENGTHENING ACTIVITIES THROUGH INTEGRATED R&D AND PRECISION
MEDICINE PLATFORMS
| 4 | Multiple
new and extended integrated drug discovery and development agreements all along the drug
discovery & development value chain (e.g., new INDiGO agreement with Matchpoint
Therapeutics) |
| 4 | Extension
and expansion of strategic neurodegeneration partnership with Bristol Myers Squibb (“BMS”),
and strong progress in strategic targeted protein degradation partnership with BMS |
| 4 | Co-owned
pipeline progress: Positive Phase I read-out for EVT8683, start of Phase I trial for EVT401 |
| 4 | Further
value creation through academic partnerships (BRIDGEs): Launch of “LAB eN²”
with Novo Nordisk and academic institutions Harvard University, Mass General Brigham, Yale
University, and Beth Israel Deaconess Medical Center |
| 4 | New
partnering agreement to strengthen biotech innovators in shared R&D economy with LabCentral,
BioLabs, and MBC BioLabs |
Events after Period-End
| 4 | Launch
of “65LAB”, Evotec’s first BRIDGE partnership in Asia |
| 4 | Co-owned
pipeline updates: Presentation of biomarkers data on EVT801, Exscientia decided to de-prioritise
EXS21546 |
| 4 | New
participation in iCARE4CVD, a consortium to personalise prevention and treatment of cardiovascular
diseases |
| 4 | New
strategic partnership with Dewpoint Therapeutics in oncology |
CORPORATE
| 4 | Opening
of new state-of-the-art biology facility on Dorothy Crowfoot Hodgkin Campus |
Events after Period-End
| 4 | Evotec
receives SBTi validation and approval of its near-term emission reduction targets |
| 4 | In
October, Evotec’s management started the social process of redeploying its chemistry
activities out of Marcy (Lyon), as part of its Value Protection Plan (“VPP”) |
|
NEWS RELEASE |
| |
BUSINESS OUTLOOK FOR FULL-YEAR 2023 AND MID-TERM GOALS 2025
CONFIRMED
| 4 | Group
revenues expected to be in a range of € 750 – 790 m or € 765
– 805 m at constant exchange rates (2022: € 751 m). |
| 4 | Adjusted
Group EBITDA expected to be in the range of € 60 – 80 m, translating
into € 70 – 90 m at constant exchange rates (2022: € 102 m). |
| 4 | Unpartnered
research and development expenses expected to be in a range of € 60 – 70 m
(2022: € 70 m). |
| 4 | Mid-term
goals target revenue growth to > € 1,000 m, adjusted EBITDA of ≥ € 300 m
and unpartnered research and development expenses of > € 100 m. |
Due to the criminal cyber-attack discovered on 6 April 2023,
productivity was affected in the second and third quarters. In response to the criminal cyber-attack, Evotec took immediate action to
contain and remediate the attack by taking its external-facing systems offline. This was deemed necessary to protect all the Company’s
partners and stakeholders and meant Evotec could ensure that the integrity of scientific data remained unaffected.
FINANCIAL HIGHLIGHTS
Key figures of consolidated income statement & segment
information
Evotec SE & subsidiaries – First nine months of 2023
| In T€ | |
EVT
Execute | | |
EVT
Innovate | | |
Intersegment
Eliminations | | |
Evotec
Group 9M
2023 | | |
Evotec
Group 9M
2022 | |
| Revenues1) | |
| 380,207 | | |
| 199,906 | | |
| — | | |
| 580,113 | | |
| 510,759 | |
| Intersegment revenues | |
| 163,165 | | |
| — | | |
| (163,165 | ) | |
| — | | |
| — | |
| Costs of revenues | |
| (460,469 | ) | |
| (136,375 | ) | |
| 154,114 | | |
| (442,729 | ) | |
| (419,150 | ) |
| Gross profit | |
| 82,903 | | |
| 63,531 | | |
| (9,051 | ) | |
| 137,384 | | |
| 91,609 | |
| Gross margin in % | |
| 15.3 | % | |
| 31.8 | % | |
| – | | |
| 23.7 | % | |
| 17.9 | % |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| R&D
expenses2) | |
| (2,767 | ) | |
| (54,650 | ) | |
| 9,051 | | |
| (48,366 | ) | |
| (55,321 | ) |
| SG&A expenses | |
| (102,096 | ) | |
| (25,387 | ) | |
| — | | |
| (127,482 | ) | |
| (109,858 | ) |
Other
operating income (expenses), net4) | |
| (12,988 | ) | |
| 20,624 | | |
| — | | |
| 7,635 | | |
| 56,734 | |
| Impairments of intangible assets | |
| (5,131 | ) | |
| — | | |
| — | | |
| (5,131 | ) | |
| — | |
| Net operating income (loss) | |
| (40,078 | ) | |
| 4,118 | | |
| — | | |
| (35,960 | ) | |
| (16,836 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Adjusted
EBITDA3) | |
| 42,057 | | |
| 8,154 | | |
| — | | |
| 50,211 | | |
| 44,600 | |
1) Group revenues would have amounted to € 587.8 m
at constant exchange rates
|
NEWS RELEASE |
| |
2) Includes
unpartnered R&D expenses of € 45.7 m in
9M 2023 (9M 2022:
€ 50.7 m)
3) Net income (loss) adjusted for interest, taxes, depreciation
and amortization of intangibles, impairments on goodwill and other intangible and tangible assets, total non-operating results, change
in contingent consideration (earn-out) and items that in magnitude, nature or occurrence would distort the presentation of the financial
performance of the Group.
4) As of Q3, the external, one-off related cyber expenses of € 11.9 m
(€ 7.8 m as of Q2) are excluded from Adjusted Group EBITDA. Internal cyber expenses are included in Adjusted Group EBITDA.
More detailed information and financial tables are available in our
interim statement 9M published on the Evotec website under the following link: https://www.evotec.com/en/investor-relations/publications
WEBCAST / CONFERENCE CALL
The Company is going to hold a conference call to discuss the results
as well as provide an update on its performance. The conference call will be held in English.
Webcast details
Date: Wednesday,
08 November 2023
Time: 2.00
pm CET (01.00 pm GMT, 08.00 am EST)
To join the audio webcast and to access the presentation slides, please
register via this link.
The on-demand version of the webcast will be available on our website:
www.evotec.com/financial-reports.
Conference call details
To join via phone, please pre-register
via this link. You will then receive a confirmation email with dedicated dial-in details such as telephone number, access code
and PIN to access the call.
A simultaneous slide presentation
for participants dialling in via phone is available under this link.
|
NEWS RELEASE |
| |
About Evotec
SE
Evotec is a life science
company with a unique business model that delivers on its mission to discover and develop highly effective therapeutics and make them
available to the patients. The Company’s multimodality platform comprises a unique combination of innovative technologies, data
and science for the discovery, development, and production of first-in-class and best-in-class pharmaceutical products. Evotec leverages
this “Data-driven R&D Autobahn to Cures” for proprietary projects and within a network of partners including all Top
20 Pharma and over 800 biotechnology companies, academic institutions, as well as other healthcare stakeholders. Evotec has strategic
activities in a broad range of currently underserved therapeutic areas, including e.g. neurology, oncology, as well as metabolic and
infectious diseases. Within these areas of expertise, Evotec aims to create the world-leading co-owned pipeline for innovative therapeutics
and has to-date established a portfolio of more than 200 proprietary and co-owned R&D projects from early discovery to clinical development.
Evotec operates globally with more than 5,000 highly qualified people. The Company’s 17 sites offer highly synergistic technologies
and services and operate as complementary clusters of excellence. For additional information please go to www.evotec.com and follow
us on X/Twitter @Evotec and LinkedIn.
FORWARD-LOOKING
STATEMENTS
This announcement contains
forward-looking statements concerning future events, including the proposed offering and listing of Evotec’s securities. Words
such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,”
“may,” “might,” “plan,” “potential,” “should,” “target,” “would”
and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments
regarding Evotec’s expectations for revenues, Group EBITDA and unpartnered R&D expenses. These forward-looking statements are
based on the information available to, and the expectations and assumptions deemed reasonable by Evotec at the time these statements
were made. No assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown
risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies,
many of which are beyond the control of Evotec. Evotec expressly disclaims any obligations or undertaking to release publicly any updates
or revisions to any forward-looking statements contained herein to reflect any change in Evotec’s expectations with respect thereto
or any change in events, conditions or circumstances on which any statement is based.
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