Evotec SE — Earnings Release 2000

May 15, 2000

News Details

Ad-hoc | 15 May 2000 08:47

Ad hoc-Service: EVOTEC BioSystems AG English

Ad hoc-announcement edited and send by DGAP. The sender is responsible for the contents of this announcement. —————————————————————————— First Quarter Report 2000: EVOTEC Achieves Considerable Increase in Revenue – Revenue rose 139% to DM 4.1 million – Net loss increased according to plan by only 20% – EVOTEC will propose a 2:1 stock split – Break-even expected for 2002 Hamburg, May 15, 2000 – In the first quarter of 2000, EVOTEC Group revenues rose 139% over the same quarter of 1999 from DM 1.7 million to DM 4.1 million. DM 3.6 million resulted from EVOTEC’s Drug Discovery Tools and Technologies division, including technology development and transfer agreements with EVOTEC’s pharmaceutical partners Novartis, SmithKline Beecham and Pfizer and the sale of instruments. The remainder resulted from Drug Discovery Products and Services. Compared to revenue growth (+139%), operating cost have increased substantially less, growing from DM 7.6 million to DM 12.0 million or 57%. Operating loss increased as expected compared to the same period of last year by 33% to DM 7.9 million, reflecting increased spending on research and development This is mainly the result of the additions to the workforce we made last year to increase our in R&D effort. The deficit for the period was DM 6.6 million, up only 20% from the comparable period in 1999. During the first three months the number of employees rose by 6 to a total of 234 employees. This slow increase underlines our objective to grow EVOTEC’s business by providing high value services to pharmaceutical companies. To attain this objective the focus has shifted from hiring additional employees to transferring experienced researchers and technicians, particularly assay developers from our Drug Discovery Tools and Technologies division into our Drug Discovery division. Hence, the growth rate for new employees has been significantly reduced, a trend which will hold in 2000. We expect to employ a staff of not more than 280 by the end of the year. In the first quarter 2000 the EVOTEC Group made significant progress through a number of important technological achievements. We delivered hardware to our partner Pfizer, including all modules of our proprietary EVOscreen system. Teams of both companies are cooperating closely to integrate the equipment into Pfizer’s screening units. In addition, with the completion and delivery of the prototype of the new 1536 FCS-compatible Nanocarrier plate in March 2000, EVOTEC has achieved in time an important milestone agreed with SmithKline Beecham and received the respective payment. We have also expanded our collaboration with Novartis in the field of on-bead screening (testing of substances on small polymer beads). After extensive beta-tests the research on this equipment will be taken up in the second quarter of 2000. During the second quarter, EVOTEC’s focus wilt be on the installation of the EVOscreen-systems at our customers sites and our own site in Hamburg. Two EVOscreen systems will be set up for site acceptance at customers’ sites during the second quarter. In addition we are now making operational our own system to provide the capacity required to adequately match the demand in our service business. Two more systems will start operating in the third and fourth quarter of 2000. The activities in sales and marketing have been increased significantly. Negotiations with customers and new collaboration partners will be completed during the current financial year. We assume that, like in the first quarter, we will realize significant revenue growth for the entire fiscal year. EVOTEC BioSystems AG had its stock listed on Neuer Markt, the high- tech segment of the Frankfurt Stock Exchange, six months ago. During this period the initial offering price of Euro 13.00 per share has been increased nearly ten-fold. Because of this rapid rise EVOTEC management decided to propose to the Annual General Meeting on June 26, 2000 a 2 for 1 stock split. The purpose is to increase the liquidity and trading activity of EVOTEC shares by doubling their number. In addition, the Management and the Supervisory Boards plan to propose creating a 12 million Euro new subscribed capital. In order to permit corporate management the optimal degree of flexibility in acting on behalf of the Company, the shareholder’s subscription rights shall be suspended in a number of situations, primarily to allow corporate acquisitions and Joint-ventures with other biotechnology companies or a listing of EVOTEC shares on a foreign stock exchange. The detailed agenda for the annual general shareholder’s meeting on June 26 will be published in the Bundesanzeiger No. 92 on May 16, 2000. EVOTEC BioSystems AG Anne Hennecke, Investor Relations Phone: +49-40-56081286 Fax:+49-40-56081222 E-mail: anne.hennecke@evotec End of Message