Evotec SE — Investor Presentation 2006

Sep 10, 2006

Evotec AG: September 2006

Forward-looking statements

Any forward-looking statements in this presentation are subject to a number of risks and uncertainties. While this presentation represents management's current judgement on the future direction of the Company's business, the actual results could differ materially from those anticipated in these forward-looking statements. The Company undertakes no obligation to release publicly the results of any revisions to reflect events or circumstances arising after the date hereof.

01 Evotec Overview

Emerging CNS company underpinned by established, profitable services business

• zCNS pipeline with 2 clinical candidates
• zContract services business with worldclass platform
  • Focus on small molecule drug development
  • Servicing over 120 customers
  • Powerful engine for proprietary research

• zCritical mass

• Revenues 2005: €80m

• 600 employees
• zFSE Prime Segment, TecDAX 30

Our CNS pipeline

D i s c o e r v y	P l i i l r e c n c a	P h I a s e	P h I I a s e	P h I I I a s e
E V T 2 0 1 G I i A B A d l t n s o m n a m o a o r u – A
E V T 1 0 1 A l h i / h i i t z e m e r n e u r o p a c p a n –	N M D A b t s u y p e s p e	i f i i t t c c a n a g o n s
E V T 1 0 2 P i i t t o s o p e r a e p a n v
E V T 1 0 3 F l l E V T t 1 0 1 o o w -u p o
D i P j t s c r o e c s
A D

Our highly productive small molecule discovery engine

*PDC = Preclinical Development Candidate; IND = Investigational New Drug; POCD = Proof of Concept Drug

Agenda

• 01 Evotec Overview
• 02 Clinical CNS Pipeline
  • EVT 201: Insomnia
  • EVT 101: Alzheimer's Disease and/or Neuropathic Pain
• 03 Discovery and Development Partnerships
• 04 Financials and Outlook

Insomnia market is growing and under-penetrated

z 54% of study responders encounter symptoms of insomnia at least 1x per month, only 7% use RX sleep aid

• zSignificant consumer driven growth potential
  • 62% of sleep physicians expect more than 20% increase in prescriptions
  • Nearly 50% of prescriptions are written based on patient request

Morgan Stanley survey of global sleep specialists (Feb 2006)

Ambien and Lunesta lead the way, however significant opportunities remain

US market share data according to IMS, Q2 2006

02 CNS Pipeline

EVT 201: Partial positive allosteric modulator of the GABAA receptor complex (pPAM)

• z Potential novel insomnia treatment
  • Reduced time to sleep onset
  • Improved sleep maintenance
  • No next day hangover
• zDifferentiated preclinical profile and mechanism of action
• zStatus: Phase II
  • Well tolerated in Phase I studies at Roche and Evotec
  • Encouraging results in 2 Phase I/II proof-of-principle studies

Preclinical profile of EVT 201 encouraging

• z Binding to the benzodiazepine site of the GABAAreceptor complex
• z Slightly alpha-1 selective, high affinity partial positive allosteric modulator
• z Unlike all developed hypnotics, not sedative in rodents

	E V T 2 0 1	( ) F l l i l l t u a g o n s a p r a z o a m
P t ( i i t o e n c y a n x e y p a n c + , i l ) t t t t a n c o n v u s a n e s	/ A i k i 0 0 1 3 0 t t t c e a m g g n r a s v - d i a n m c e	O l l i h l t t t n s g m o r e p o e n y y
f f A d t ( i i d v e r s e e e c s m p a r e d f i t r o a r o p e r o r m a n c e a m n e s a , , ) l i i h d l t c o n v u s o n s u p o n w r a w a	N b d d f t t t o o s e r e a o s e s o p o v u & / k 3 0 1 0 0 m g g p o	O / b d 1 1 0 k t t s e r e a o m g g p o v
P i i f d i t t t t o e n a o n o s e a e v f f f t t h l e e c s o e a n o	N i i i i t t t t o p o e n a o n n m c e a / d 1 0 0 k t o s e s u p o m g g s c	M k d l i / k 0 3 t t a r e a c e a m g g y v s c
D l f l t t e e o p m e n o o e r a n c e v	N h i l i f f f t t t t t t o o e a n x o y c e e c a e r 4 k i t t t t w e e s c o n n u o u s r e a m e n	Y e s

1st EVT 201 Phase I/II proof-of-principle insomnia study

1st study results with EVT 201 2.5mg promising

• zEncouraging hypnotic efficacy
  • Reduced time to sleep onset
  • Improved sleep maintenance measured by WASO, TST, number of awakenings
  • Enhanced sleep architecture: Longer slow wave sleep, REM sleep unaffected
  • Improved subjective mood the following morning
  • Little evidence of meaningful residual effects in the morning
    • • Minor effects on a few objective measurements (only at 8 hours post dose)
    • • No subjective hangover effects
• z Dose of 2.5 mg appears optimal
  • Hypnotic efficacy did not improve between 2.5 mg and 10.0 mg doses
  • Lower doses may show efficacy with even less potential for residual effects

02 CNS Pipeline

Arousals at 2.5 mg: Evidence of a prolonged effect throughout the night

2nd EVT 201 Phase I/II proof-of-principle insomnia study lower doses

2nd study headline results summary: Significant objective efficacy

	W k A f S l O ( W A S O ) t t a e e r e e p n s e	S i i f i l d d ( & ) 1 2 0 2 t 5 5 g n c a n r e c e m g y u ,
S l e e p i t	S ( S ) T l l T i T T t o a e e p m e	S ( ) i i f i l i d & 2 0 2 5 t g n c a n y m p r o v e m g
m a n e n a n c e	S f f l E i i I d e e p c e n c y n e x	S f ( ) i i i l i d 2 0 & 2 5 t g n c a n y m p r o v e m g
S l e e p h i t t a r c e c r e u	S S ( ) l W l % d i t o w a v e e e p + u r a o n	S f ( ) i i i l i d l l 4 d t g n c a n y n c r e a s e a o s e s
	S I V S l ( d i ) % t t a g e e e p r a o n + u	S i i f i l i d ( l l d ) 4 t g n c a n n c r e a s e a o s e s y

2nd study headline results summary: Enhanced Wake After Sleep Onset (WASO)

• z 1.5, 2.0 and 2.5 mg of EVT 201 reduced both duration and percentage of WASO
• z P < 0.05, 0.05 and 0.01 respectively

2nd study headline results summary: Longer Total Sleep Time (TST)

z EVT 201 2.0 and 2.5 mg doses significantly increased Total Sleep Time (P < 0.05)

2nd study headline results summary: Subjective efficacy, no subjective residual effects reported

S L d l E l i t e e s e e p a a o n v u Q i i t e s o n n a r e u	Q l i f l t a o s e e p u y	S i i f i l i d l l d 4 t t g n c a n m p r o e a a o s e s y v
	G i l t t t e n g o s e e p	( N f f ) * t o e e c
	E f k i a s e o a a e n n g w	N f f t o e e c
	E l i b h i a r m o r n n g e a o r y v u ( ) l i & i d t c u m s n e s s r e n e s s	N f f t o e e c

* The road traffic noise model is considered clinically non-discriminant for sleep onset measures

2nd study headline results summary: Objective residual effects minor, inconsistent, not time or dose related

A i d t t t e n o n a n	S ( S ) i d A i R A R T t t t t t s a n e e n o n o e s p o n s e u	f f N t o e e c
a c c u r a c y	f R i d V i l I i P i t a p s a n o r m a o n r o c e s s n g u	f f N t o e e c
	C i T k i T k d i i t t o n n u o u s r a c n g a s e v a o n -	f f N 8 h t t o e e c a ,
		i i d 1 0 & 1 2 h t m p a r e a
	C i T k i T k i i t t t o n n o s r a c n g a s r e a c o n m e u u -	I i d 8 h t m p a r e a ,
		f f h 1 0 1 2 t t n o e e c a o r
M e m o r y	S b M T k ( S T M ) t e r n e r g e m o r a s y	N f f h 8 1 2 t t o e e c a o r ,
		l i h f f h 1 0 t t t s g e e c a
	W d R l l i d i ( W R i ) t o r e c a m m e a e –	I i d h * 8 t m p a r e a
	W d R l l d l d ( W R d ) o r e c a e a e y –	N f f t o e e c
M d i i t t o o r c o o r n a o n	C i i l F l i k F i T t t r c a c e r s o n e s u	N f f t o e e c
	C C h i R i T i M t t t o c e e a c o n m e o o r o m p o n e n -	N f f t o e e c

* Immediate word recall was not tested at 10 and 12 hours

02 CNS Pipeline

EVT 201 Phase I/II study conclusions consistent across both studies

• zNovel pharmacological profile as a partial positive allosteric modulator of GABAA receptors
• z Good hypnotic efficacy in traffic noise model of insomnia:
  • Significantly improved sleep maintenance
• z Positive effect on sleep architecture (increased slow wave sleep)
• z The optimum dose range at 1.5 – 2.5 mg
• z Next day residual effects minimal
• zPromising potential as a differentiated treatment for insomnia with activity on both sleep induction and maintenance

EVT 201: Clinical development now focussed on 2 POC studies in primary insomnia patients

	S ( ) d B P 1 9 1 1 R h 1 9 9 9 5 t o c e u y S i l d i d 0 3 2 0 n g e a s c e n n g o s e m g m g – b j ( i ) 6 5 3 9 t t s e c s a c e u v
	S d E V T 2 0 0 1 t u y - D f i d i 2 1 0 5 o s e n n g m g m g – f f f R d T i M d l I i o a r a c o e o n s o m n a ( ) 1 2 b j h l h l l t t t s u e c s e a y m a e v o u n e e r s		S d E V T 2 0 0 2 t u y - D f i d i 1 2 5 o s e n n g m g m g – f f f R d T i M d l I i o a r a c o e o n s o m n a 1 2 b j t s u e c s
S d E V T 2 0 0 3 1 t S d E V T t u y u y - - S i l d i d R d t n g e a s c e n n g o s e e p e a o s i l d l 1 & 2 1 2 2 5 n e e r y m g , , 2 4 b b j 2 4 t s u s u e c s		S 2 0 0 3 2 d E V T 2 0 0 3 3 t u y - - - - i R d i l d l t e n o n g e p e a o s e n e e r y u y 2 5 5 m g m g j 1 6 b j t t e c s s e c s u
S d E V T 2 0 0 4 t u y - f f P h I I i t a s e p r o o o c o n c e p o n g o n g - - d i h i i i i 2 o s e s n c r o n c p r m a r y n s o m n a i t t p a e n s b j 6 6 t s e c s u			S d E V T 2 0 0 5 t u y - P h I I l d l i t t a s e e e r p a e n s y 2 d i h i l d l i o s e s n c r o n c e e r p r m a r y y i i i t t n s o m n a p a e n s 1 3 b j 5 t s e c s u

Market overview Alzheimer's disease:

Huge unmet need for therapies improving symptoms or slowing disease progression

• zAD market is one of the most rapidly growing CNS markets
  • CAGR 2001 – 2004: 35%
  • Based on aging population and launch of memantine
• zOnly 4 drugs on the market today
  • Limited benefits
  • Clear opportunities for novel treatments
• z Number of individuals with AD expected to rise up to 3-fold by 2050

02 CNS Pipeline

EVT 301/302: Orally active, potent and selective inhibitors of MAO-B

• zNovel potentially disease modifying Alzheimer's treatment
• zPhase III data of a first generation MAO-B inhibitor encouraging
• z EVT 301/302 developed as a second generation
  • EVT 301 development discontinued due to several cases of elevated liver function tests in Phase I study
  • Development of EVT 302 back-up compound under evaluation

02 CNS Pipeline

EVT 101: Oral NR2B subtype selective NMDA receptor antagonist

• zSymptomatic Alzheimer's treatment (Potential for neuropathic pain, Parkinson's disease)
• zSub-optimal non-selective, marketed 'memantine': Blockbuster potential
• zSelectivity may offer clinical advantages
• zPhase I successfully completed
• zRoche buy back option after Phase I

NMDA receptor antagonists: Background

• zExtensive studies indicate a role for NMDA receptor antagonists in the treatment of
  • Alzheimer's disease
  • Neuropathic pain
  • Parkinson's disease
  • Stroke and traumatic brain injury
• z The clinical development of non-selective antagonists has been hampered by a low therapeutic window due to mechanism related, CNS side-effects
• z NMDA receptor subtypes exist which contain different NR2(A-D) subunits

02 CNS Pipeline

Restricted distribution of NR2B subunit containing receptors

• zNR2B subunit has a distribution in brain restricted to areas important in:
  • Alzheimer's disease (cortex, hippocampus)
  • Parkinson's disease (basal ganglia)
  • Pain sensation (dorsal horn, thalamus, cortex)

Memantine has been quick to take up market share

• z Blockbuster potential
• z But: non-selective NMDA antagonist with accompanying side effects

Memantine sales in \$ million

EVT 101: A next generation memantine?

M i t e m a n n e	E V T 1 0 1
B l k l l N M D A i l l b i t o c a r e c e p o r s n a r a n a r e a s	S f l i N R 2 B i i N M D A t t e e c e o r c o n a n n g v t r e c e p o r s
( T h i i d i l l 2 t e r a p e u c w n o w s s m a x ~ d d d i d f f ) t r e c o m m e n e o s e s e e e c s s e e n :	T h i i d i d b t t t e r a p e u c w n o w s e x p e c e o e h i h ( l i i l l ) 1 0 g e r p r e c n c a x y >
M i f f i i d b d a m m e c a c c o m p r o m s e o s e x u y y f f l i i i d i d t t t t m a o n s u e o s e e e c s	C d i f f i t t a n o s e o g e m a m m e c a c x u y
H i h d i i d l i g o s e s m p a r m e m o r a n e a r n n g y p r o c e s s e s	H i h d d i i d t g o s e s o n o m p a r m e m o r a n y l i e a r n n g p r o c e s s e s

EVT 101: Preclinical profile High potency, selectivity and excellent drug like properties

• z High potency and selectivity

  • 1,000-fold for any off-target activities

• z Rapidly and extensively absorbed
• z Moderate plasma clearanc e
• z Good brain penetration
  • CSF/plasma ratio 0.25 – reflects free plasma concentration
• z High oral potency with low side-effects
• z High in vitro metabolic stability in microsomes and hepatocytes
• z Low potential for drug-drug interaction
  • CYP450 isoforms IC50s >50 µM
• z Successfully completed all regulatory toxicology and safety studies required for entry-into-man

EVT 101 Phase I trial: SAD and MAD

zEVT 101 at single oral doses of up to 15 mg was safe and well tolerated

• No serious adverse events recorded
• Most of the adverse events recorded were mild and short-lasting
• No food effect
• There were no clinically significant changes in safety parameters including ECGs, vital signs and blood and urine tests
• Good exposure and PK profile - Tmax ~2h, T-half ~11h, dose proportionality
• z EVT 101 dosed to 4 mg twice daily and 8 mg once daily for eight days in young subjects (24)
• z EVT 101 dosed up to 3 mg twice daily in elderly (20)
  • Well tolerated in both young and elderly with no change in PK after repeat dosing
• z Systemic exposure exceeds concentrations predicted to be therapeutically active

02 CNS Pipeline

EVT 101 Phase I MAD: Pharmacokinetics predictable and unchanged after repeat dosing (4 mg twice daily)

Agenda

• 01 Evotec Overview
• 02 Clinical CNS Pipeline
• 03 Discovery and Development Partnerships
• 04 Financials and Outlook

Differentiation factor 1: Fully integrated R&D solutions from Target to Clinic

** typically done by customer or subcontracted 9/25/2006

Differentiation factor 2: Critical mass in scientific skills and facilities

350+ experienced scientific/technical staff High quality research facilities:

• Laboratories: 27 biology labs 5 cell-culture labs 33 chemistry labs 8 analytical labs X-ray crystallography
• World-class screening factory: 3 uHTS platforms for biochemical and cellular assays

Production:

• 2 cGMP kilo laboratories 2 pilot plants, with 8 vessels (FDA and European standards)
• Cutting-edge analytical equipment

9/25/2006

Page 35

Differentiation factor 3: Broad customer network, outstanding references

Strategy

• Benefit from academic centres of excellence (e.g. UC GRI)
• Complete pre-/clinical development packages for Biotech (incl. consultancy)
• z Outsource strategy for non-core, price challenged elements
• z Leverage technology platform, target class and therapeutic indication expertise into higher value, results-driven collaborations

Boehringer - Evotec: High value added, results-driven collaboration

Roche - Evotec: High value added, results-driven collaboration

• zCNS project started in Evotec

  • Undisclosed target

• Assay development, initial screen, identified chemical matter

• zRoche interested in the project, offered deal
  • 50:50 collaboration
  • Jointly develop compound to Clinical Candidate stage
  • Opt-in right for Roche at Clinical Candidate, if not exercised Evotec can opt in
  • Milestones potentially over EUR 100 m
  • Royalties

Agenda

• 01 Evotec Overview
• 02 Clinical CNS Pipeline
• 03 Discovery and Development Partnerships
• 04 Group Financials and Outlook

H1 2006: Group results improved despite increased R&D expenses, strong performance in Services

E U R i l l i % t m o n e c e p x ,	H 1 2 0 0 5	H 1 2 0 0 6	i % ∆ n
R e v e n u e s	3 4 3	3 6 6	% 7 +
S i D i i i e r c e s s o n v v -	2 9 0	3 0 1	4 % +
G i r o s s m a r g n	3 % 5 7	3 6 6 %
O i l t t p e r a n g r e s u	( ) 2 7 3	( ) 1 8 1	3 4 % +
S i D i i i e r v c e s v s o n -	( ) 4 9	0 3	1 0 5 % +
N l t t e r e s u	( ) 2 8 4	( ) 1 1 3	6 0 % +
C f h t t h d J a s a e e n o u n e	8 3 5	6 0 7	4 % +
I F R S

Strong Sales & Order Book

Sales & Order Book for 2006 as of August

in € million

Key milestones 2006

H 1 2 0 0 6	9 f C S E i N i l i h h i l i i t x p a n s o n o p p e n e r o u g n c e n s n g -
	9 E V T P h I S A D l 1 0 1 t a s e r e s s : u
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	9 C S N d i h i i h B i P h t t s c o v e r y p a r n e r s p w g a r m a
H 2 2 0 0 6	9 E V T C l P h I, f l l l R h b b k ? 1 0 1 t t o m p e e a s e r e s s o c e a c : u u u y - ,
	9 E V T 3 0 1 R l f P h I d t t e s u s o a s e s u y :
	E V T I i i P h I I i i i i 2 0 1 9 t t t t n a e a s e n n s o m n a p a e n s :
	S i D i i i h i t e r v c e s v s o n c a s g e n e r a v e
	Y d h E U R 4 8 e a r e n c a s m >

Tomorrow's Drugs Today™

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