Evotec SE — Earnings Release 1999

Apr 4, 2000

News Details

Ad-hoc | 4 April 2000 08:48

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. —————————————————————————— The fiscal year 1999: Paving the way for continuing dynamic growth – Revenue increased by 34% to DM 19.1 million – DM 10 million order volume in drug discovery Services generated since IPO – Operating results significantly better than expected – Net Income exceeds analysts’ expectations – Improvement in operating cash flow and net cash flow compared to previous year Hamburg, April 4, 2000 – In fiscal 1999, EVOTEC BioSystems AG (Neuer Markt: EVT) showed a robust rate of growth. Revenue increased by 34% to DM 19.1 million. Revenue of DM 9.8 million was realized in the fourth quarter of 1999 alone. This represents an increase of 42 percent compared to the same quarter in the previous year. Revenue projections for 1999 were fully met. Pfizer, Inc. (USA) joined the EVOscreen technology development consortium in 1999, becoming the third major pharmaceutical partner, alongside existing partners Novartis and SmithKline Beecham. This new partnership represents the first major success for EVOTEC in North America. Revenue of DM 12.3 million was generated by the collaborations with these three partners in 1999. Following years of research and development, the first EVOscreen system was delivered to Novartis in 1999. Instrument sales amounted to DM 3,9 million for EVOTEC in 1999. The third quarter of 1999 was notable for the successful launch of EVOTEC’s Drug Discovery Services business unit. This unit puts EVOTEC’s substantial expertise and technology portfolio to work for pharmaceutical clients in the search for new drugs. Contracts with Roche Diagnostics, Knoll/BASF and SUGEN generated an order volume of DM 10 million, and revenues of DM 3.8 million in 1999. Top-notch scientists strengthen the EVOTEC team The growth of the Company is also reflected in the sharp increase in the number of employees. Eighty-seven new employees joined the staff in 1999. Thanks to EVOTEC’s reputation, the Company was able to attract the large number (59) of highly qualified scientists from the disciplines of biology, biochemistry, chemistry, physics, information technology and engineering the Company required to maintain its leadership position. At the end of the year, EVOTEC counted 228 full-time employees. Two new business units were inaugurated in 1999 – drug discovery Services and in-house pre-clinical drug discovery – with a total of 34 employees. These two units will contribute significantly to future growth of the Company. R&D growth right on target As planned, research and development expense grew from DM 16.2 million in 1998 to DM 25.4 million in 1999 – an increase due largely to the growth in scientific staff over the course of the year. This amount also includes the cost of platform technology development for members of the EVOscreen consortium. Results beat analysts’ expectations Expansion into new business areas and intensive research and development activities generated a net loss of DM 18.5 million in fiscal 1999. With this result, EVOTEC bettered analyst loss forecasts of DM 24 – 28 million. Improved cash flow Cash flow from operating activities improved by DM 1.8 million to DM -13.9 million. Major contributors to this result were the deferred payments made by Pfizer for the purchase of EVOscreen licenses. Net cash flow of DM 81.3 million as a result of the IPO in November 1999 lead to a significant increase in liquidity to DM 112 million as of December 31, 1999. Looking ahead to 2000: On the road to becoming an integrated drug discovery company EVOTEC expects a further significant increase in revenues for fiscal 2000. As of February, order volume already corresponded to approximately 50% of forecast revenue for 2000. An important contribution will be made by the Drug Discovery Services business unit. A planned operational base in the USA will help to establish EVOTEC’s service business in the world’s largest pharmaceutical market, clearing the way for even more substantial growth. Additional collaborations and contracts with pharmaceutical companies are anticipated for 2000. The increase in personnel will be less strong in 2000, with staff totaling not more than 280 by year’s end (1999: 228 employees). EVOTEC’s goal is to become a partner to the pharmaceutical and biotechnology industries in all areas of pre-clinical drug discovery. As well as expanding its Service business, EVOTEC will concentrate its business development activities on reinforcing its expertise in new areas of pre-clinical drug discovery via Strategie alliances or acquisitions. EVOTEC BioSystems AG Anne Hennecke, Investor Relations Phone:+49-40-56081286 Fax:+49-40-56081222 E-mail: anne.hennecke@evotec.de End of Message