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Accelerated Positive Trend On Evotec's Revenues And Profits

HAMBURG, Germany, Nov. 11, 2010 (GLOBE NEWSWIRE) -- Evotec AG (Frankfurt:EVT) (TecDAX) today reported financial results and a corporate update for the first nine months of 2010.

Recent Highlights:

Strong improvement of key financial results

  • Evotec reports continued strong revenue growth of 33% and a positive operating result of € 1.0 m for the first nine months of 2010 (compared to € 32.9 m loss in the first nine months of 2009)
  • Strong Q3 results with 33% improvement in revenues and a positive operating result of € 0.7 m (compared to € 3.8 m loss in Q3 2009)
  • Following cash flow positive third quarter liquidity improved compared to the end of H1 2010 to € 70.2 m (+ € 2.3 m)

Several new discovery alliances initiated; progress and milestone achievements in current partnerships

  • New ion channel hit identification agreement with Almirall
  • Fragment-based drug discovery alliance with Shionogi (after period-end)
  • Pain alliance with Apeiron Biologics (after period-end)
  • Milestone achievement with Boehringer Ingelheim
  • Good progress in many alliances (e.g. Vifor, Genentech)
  • Excellent capacity utilisation

Proprietary research programmes advancing

  • Focused research investments in proprietary platform technologies and selected discovery programmes
  • Evaluation of indication for EVT 401 ongoing
  • Increased research commitment to metabolic disease capability since closing of DeveloGen acquisition

Product development partnerships on track; first license agreement for EVT 201

  • Phase II with EVT 101 in treatment-resistant depression with Roche on track
  • Jingxin Pharma in-licenses Evotec's insomnia candidate EVT 201 for development in China (after period-end)

DeveloGen acquisition completed

  • 6,750,014 new shares were issued from authorised capital in Q4 as consideration for the transaction

Financial guidance for 2010 confirmed

  • More than 20% revenue growth expected for the full year 2010, leading to revenues of € 52 to 54 m
  • Strong 2010 order book (October 2010: € 51 m; +31% over 2009) supports growth target
  • Liquidity guidance of >€ 64 m at year-end confirmed despite cash required for the acquisition of DeveloGen

Financial outlook 2011 and beyond shows continued growth

  • Revenue growth of more than 15% expected into 2011
  • Well on track for sustainable profitability latest in 2012

1. OPERATIONAL PERFORMANCE

Strong improvement of key financial results

During the first nine months of 2010 Evotec's drug discovery alliances continued to grow significantly. Supported by milestone achievements, revenues increased by 33% to € 38.8 m (2009: € 29.1 m). Gross margin was strong at 44.0% (2009: 38.3%). Following the implementation of Evotec's Action Plan 2012, and successful partnering, R&D expenses declined by 79% to € 4.2 m (2009: € 19.5 m), and SG&A costs by 12% to € 11.6 m (2009: € 13.1 m). On this basis, the operating result was positive at € 1.0 m (2009: € 32.9 m loss). Liquidity including cash, cash equivalents and investments at the end of September 2010 increased from end of June 2010 to € 70.2 m.

2. DISCOVERY ALLIANCES UPDATE

Several new discovery alliances initiated; progress and milestone achievements in current partnerships

Due to its scale, strong platform of technologies combined with disease biology know-how and excellent project management, as well as its strong reputation in the industry, Evotec is ideally positioned as the partner of choice for integrated drug discovery alliances with the pharmaceutical and biotech industry. The Company signed a number of new important contracts during the third quarter and made good progress in many of its current programmes. Within its collaboration with Boehringer Ingelheim a third milestone for 2010 was achieved in July.

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