Evotec SE — Investor Presentation 2013

Jan 11, 2013

Innovation Efficiency – Evotec Company Overview

Evotec AG, 31st Annual J.P. Morgan Healthcare Conference, January 2013

Forward-looking statements

Information set forth in this presentation contains forward-looking statements, which involve a number of risks and uncertainties. The forwardlooking statements contained herein represent the judgement of Evotec as of the date of this presentation. Such forward-looking statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those contemplated in these forwardlooking statements. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.

Agenda

• Evotec at a glance

• Innovation Efficiency Action Plan 2016
• Financial strategy & Outlook

Best-in-class drug discovery offering

Evotec overview and value proposition1)

Systematic, unbiased and comprehensive service infrastructures to reduce costs and accelerate time in R&D

Rich partnered product pipeline including advanced clinical and preclinical assets and unpartnered first-inclass targets in kidney disease and CNS

Strong strategic position with more than 600 scientists, unique track record after >15 years history, >100 lead series, >30 pre-clinical candidates, >20 clinical compounds and strong cash position

A global company with a complete offering

Evotec worldwide operations

Sales representation (Boston, Tokyo) Operations & sales representation

PAGE 1) Manfred Eigen (*1927), German biophysical chemist and one of the worldwide leading pioneers in biotechnology. In 1967, he won the Nobel Prize in Chemistry for his work on a special measuring method of fast chemical reactions, which, until then, were considered to be immeasurable. He initiated the foundation of Evotec AG.

Agenda

• Evotec at a glance
• Innovation Efficiency – Action Plan 2016
• Financial strategy & Outlook

Drug discovery outsourcing is a growth market

Key factors underpinning market dynamics

Addressing the R&D productivity and innovation challenge

Evotec's customer and innovation solutions

Broad stand-alone execution business

Comprehensive Drug Discovery Platform – "EVO Apps"

Broad scope of solid fee-for service with long term perspective

EVT Execute – Examples for strategic collaborations

Field	Partner	Scope	Upside
Compound management	NIH	10 years	US\$ 70 m, solid margins
Screens for multiple disease areas	Top Pharma & biotech	~ 25 in 2012	Similar scope in 2013, solid margins
Huntington Disease	CHDI	< 3 years	US\$ 41 m over period, solid margin, technology development
Counter screening	Top Pharma	Ongoing	Solid margins
Protein production	Top Pharma	Ongoing	Solid margins
Integrated programs	Genentech	Renewable 2013	Solid margins

Strong growth with highest quality outsourcing services

EVT Execute strategy 2013

Expand offering for even more complete customer solutions (e.g. Cell Culture Services1))

Expand footprint with services even closer to our customers (e.g. US East Coast) ²

Further improve service levels, gross margins and profitability – lean initiatives 3

Disease biology – the processor for integrated drug discovery alliances

Core competence alliance model

"Fast Decision" business model aligns incentives

Milestone-driven performance-based business model

Large scope pharmaceutical portfolio with significant upsides

EVT Innovate and EVT Integrate – early assets

Indication	Partner	Status	Next milestone	Commercials
Endometriosis	Bayer	Pre-clinical	Pre-clinical candidate	Upfront € 12 m; total value up to approx. € 580 m; royalties
Undisclosed	Novartis	Pre-clinical	Phase II completion	Upfront payment, research funding milestone payments and royalties
Various	Boehringer Ingelheim	Pre-clinical	Pre- and clinical candidate	Milestone payment, royalties
Type 2 Diabetes Insulin Sensitizer	Boehringer Ingelheim	Research	Pre-clinical candidate	Up to € 237 m milestones, significant royalties
CureBeta Type 1 and 2 Diabetes	Janssen Pharmaceuticals	Research	Pre-clinical candidate	Upfront \$ 8 m; research payment; up to \$ 300 m milestones per product; significant royalties
Type 1 and 2 Diabetes EVT770	MedImmune/ AstraZenca	Research	Clinical candidate	Up to € 254 m milestones, significant royalties

Building an even stronger portfolio of opportunities

EVT Integrate strategy 2013

Further expansion of portfolio with new strategic multi-target alliances ¹

Increase amount of milestone achievements in ongoing alliances ²

Expand customer reach to even more biotech and mid-sized Pharma customers ³

Pharma product development portfolio without financial risk

EVT Innovate – clinical development assets

Indication	Partner	Status	Next milestone	Commercials
Diabetes1)	TEVA/ Andromeda	2nd Phase III recruitment closed	Final Phase III data	Approx. € 40 m milestones, royalties; potential market approx. € 500 m
Alzheimer's Disease2)	Roche	Start Phase II	Completion of Phase II Phase III start	Approx. \$ 820 m milestones, royalties; potential market \$ 3-5 bn
Treatment resistant depression3)	Janssen Pharmaceuticals	Phase I/II	Confirmation of pre clinical study / Phase II start	Approx. \$ 160 m milestones, royalties; potential market \$ 2 bn
Insomnia4)	Jingxin	Phase II	Phase IIb start	Milestones, royalties
Inflammation5)	Conba	Phase I/II	Phase II start	Approx. € 60 m milestones, royalties
Acromegaly, Diabetic Retinopathy, others	Aspireo	Phase I	Partnering	Advisory fees, royalties

Novel treatment for T1D met Phase III endpoints

Product development alliance with Andromeda/Teva (Phase III)

About DiaPep277®

• DiaPep277® is a unique peptide of 24 amino acids derived from human heat shock protein 60 (HSP 60)
• The peptide acts by modulating the immune system, thus preventing the destruction of pancreatic cells that secrete insulin in response to elevated blood glucose levels

DiaPep277® progressing towards market

Product development alliance with Andromeda/Teva

Development background	Status	Expected key milestones for Evotec
• All development, regulatory responsibilities and costs have been transferred to	• DiaPep277® met primary endpoint of 1st Phase III trial (beta cell function)	• Next milestone is triggered upon completion and outcome of 2nd Phase III study
Andromeda/Teva1) • Phase I and Phase II studies	• DiaPep277® demonstrated a significant preservation of	• Final data of 2nd Phase III in 2014/2015(e)
were successfully conducted	C-peptide levels, a marker for	• First sales projected for
• Two Phase III studies have to be conducted for registration	assessing insulin secretion by pancreatic cells	2015(e)/2016
• Orphan drug status in USA granted	• Additional clinical, safety and efficacy analysis ongoing
• Teva has a world-wide exclusive license to DiaPep277®	• 2nd Phase III with approx. 500 patients/recruitment closed

Novel treatment of Alzheimer's disease

Product development alliance with Roche (Phase II)

About RG1577 – EVT302

• MAO-B is normally present in brain and is responsible for break-down of certain neurotransmitters
• Activity of MAO-B is linked to production of reactive oxygen species, molecules that can cause neuronal damage
• Blocking the activity of MAO-B should reduce oxidative stress which is expected to slow progression of AD

Phase II POC ongoing

Product development alliance with Roche

Development background	Licensing agreement	Status and expected key milestones for Evotec
• All development, regulatory responsibilities and costs have been transferred to Roche • Phase I and Phase II trials have been conducted partially with different therapeutic goals • Safety profile is established • Development profile can potentially target stand-alone application or combination treatments	• No further costs to Evotec • Upfront payment of \$ 10 m • Milestones of \$ 820 m • Double-digit royalties	• Phase II trial initiated in September 2012 • Phase II completion (POC) / Phase III start (2015e)

Uniquely positioned to meet an huge unmet medical need

Product development alliance with Janssen (Phase I/II)

TRD & selective antagonists of NMDA receptor NR2B subtypes
• a high unmet medical need1) TRD – – More than 120 m depressed patients in US/EU – 1/3 of patients does not respond to first line antidepressant – Significant side effects of all existing interventions • Significant advantages over non-selective NMDA antagonists (e.g. ketamine and memantine) due to better side effect profile

About NMDA receptor NR2B subtypes

EVT100 are high affinity, selective antagonists of N-methyl-D-aspartate (NMDA) receptor subtypes containing the NR2B subunit; they bind preferentially to the activated form of the receptor (activity-dependent); they modulate channel activity by inhibiting channel opening probability

¹⁾ Definition CPMP Guidelines: TRD "Consecutive treatment with 2 products of different classes, used for a sufficient length of time at an adequate dose, fail to induce an acceptable effect" (Cave pseudo-resistance)

Fast next development steps expected

Product development alliance with Janssen

Development background	Licensing agreement	Status and expected key milestones for Evotec
• All development, regulatory responsibilities and costs have been transferred to Janssen • Several Phase I trials have been conducted with EVT101 and EVT103 • Safety / Tox profile is established for EVT101 and almost complete for EVT103	• No further costs to Evotec • Upfront payment of \$ 2 m and \$ 6 m after confirmation of certain pre-clinical properties of the candidates • Clinical & commercial milestones of up to \$ 167 m • Double-digit royalties	• Confirmation of pre-clinical study of EVT103 and Phase II trial start in 2013 • Completion/Phase II 2015(e)

Creating first-in-class innovation

Janssen / Harvard / Evotec - CureBeta

Building a Cure X pipeline

Cure X initiatives

CureBeta CureBeta	• Started collaboration with Harvard University in March 2011 • Partnered CureBeta with Janssen in July 2012 • Significant research payments, milestones, royalties
CureNephron CureNephron	• Started collaboration with Harvard University in February 2012 • Portfolio of approaches to identify disease modifying mechanisms • Highly productive in generating candidate targets & compounds
CureNeuron	• Concept phase for internal projects • Exploring potential collaboration opportunities
CureHeart	• Concept phase for internal projects • Exploring potential collaboration opportunities

Open innovation with a commercial outlet

Yale – Evotec partnership

First-in-class innovation with focus in CNS, oncology and metabolics

EVT Innovate strategy 2013

Agenda

• Evotec at a glance
• Innovation Efficiency Action Plan 2016
• Financial strategy & Outlook

Positive trend of all key metrics and strong revenue and profitability growth expected for 2013

Key metrics for 2012/2013

in m €

The right team to deliver innovation, growth and industrialisation

Management & shareholder structure

Strong news flow to come with Action Plan 2016

Outlook and next steps for 2013 ff

Key milestones for 2013

1	EVT Execute

• Double-digit revenue growth
• Expansion success of existing alliances
• Significant long-term deals with Pharma, biotech and mid-sized Pharma

• At least 1 significant new integrated technology/disease alliance • Accelerated pre-clinical/clinical milestones ² EVT Integrate

• Strong progress in product development partnerships
• Expand network of academic alliances ³ EVT Innovate

Your contact:

Dr Cord Dohrmann Chief Scientific Officer

+49 (0)551.505 58 650 cord.dohrmann@evotec.com