The acquisition of Renovis will create a leading drug development company, with a broadened clinical and preclinical pipeline and a combined cash
position of pro-forma 141m at the end of 2007. Subject to Renovis stockholder approval, the transaction is expected to close on May 1, 2008 or shortly thereafter. It will give the Company a NASDAQ listing and at the same time, access to
the largest biotech investment community in the world.
Financial Guidance
Evotecs financial objectives in this outlook section are those of the combined
new Evotec Group based on the assumption that the merger with Renovis will close on May 1, 2008 or shortly thereafter.
In 2008, total Group revenues before out-licensing income are expected to reach 34m to 36m. These assumptions are based on the current order book, expected
new contracts and contract extensions as well as, to a lesser extent, the achievement of certain research milestones. Depending on the contribution from out-licensing and additional milestone income, revenues may also be substantially
higher.
The operating result before out-licensing income and assuming no 2008
impairment charge, is expected to be in the approximate range of 2007 and in the event of a successful out-licensing may significantly outperform 2007. Evotec continues to invest in research & development (R&D). The Company expects
R&D expenses before employee stock compensation to amount to 46 to 51 m in 2008. The increase is mainly driven by progress in the clinical pipeline and the Renovis acquisition.
Liquidity at the end of 2008, after the merger with Renovis, is targeted to exceed 85m
excluding out-licensing payments. Assuming the Companys ambitious portfolio development goals and assuming no major out-licensing event, the cash position is currently expected to be sufficient to fund Evotecs development programs over
the next three years.
About Evotec AG
Evotec is a leader in the discovery and development of novel small molecule drugs. Both through its
own discovery programs and through research collaborations, the Company is generating the highest quality research results to its partners in the pharmaceutical and biotechnology industries.
In proprietary projects, Evotec specialises in finding new treatments for diseases of the Central
Nervous System. Evotec has three programs in clinical development: EVT 201, a partial positive allosteric modulator (pPAM) of the GABA
A
receptor
complex for the treatment of insomnia, EVT 101, a subtype selective NMDA receptor antagonist for the treatment of Alzheimers disease and/or pain, and EVT 302, a MAO-B inhibitor in development for smoking cessation.
On 19 September 2007, Evotec announced that it has entered into a definitive agreement to
acquire Renovis, a biopharmaceutical company focused on the discovery and development of drugs for major medical needs in the areas of pain and inflammatory diseases. The acquisition is subject to the approval of Renovis stockholders, U.S.
anti-trust clearance and other customary closing conditions.
www.evotec.com
|