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Evotec Reports Full-Year 2010 Results: A Good Year With A Strong Start Into 2011

Stocks in this article: EVT

The Evotec Group started the year with € 70m of cash and cash equivalents. In 2011, top-line growth is expected to significantly reduce the cash requirements compared to the 2010 fiscal year for the operating business. However, Evotec's planned investments into the upgrading of its capacities and capabilities will increase cash requirements over 2010. At constant year-end 2010 currencies, the Company therefore expects to end 2011 with a liquidity of approximately € 65m, excluding any potential cash outflow for M&A or similar transactions.

Through the implementation of "Evotec 2012 – Action Plan to Focus and Grow" Evotec has managed to stop the permanent cash outflow over the last years and is currently "cash generating" or at least "cash neutral", despite its strong commitment to R&D. This is the first step towards a truly sustainable business.

Webcast / Conference Call

Evotec is going to broadcast its press & analyst conference in Frankfurt live on the internet. The Management Board of Evotec AG will inform you about the FY 2010 results as well as the status of the Discovery Alliance Business and the Company's development projects. Moreover, they will provide an update on the "Evotec 2012 – Action Plan to Focus and Grow" and the business outlook for 2011. The conference will be held in English.

Date: Thursday, 24 March 2011
Time: 10.00 am CET (09.00 am GMT/05.00 am EDT)

To join the audio webcast and to access the presentation slides you will find a link on our home page www.evotec.com shortly before the event.

For those who prefer to listen to the presentation via phone, please dial:

From Germany: +49 (0)69 20 17 44 210
From UK: +44 207 153 9154
From USA: +1 877 423 0830
Access Code: 605956#

The on-demand version of the webcast will be available on our website: www.evotec.com - Investors – Events - Financial Calendar.

About Evotec AG

Evotec is a leader in the discovery and development of novel small molecule drugs with operational sites in Europe and Asia. The Company has built substantial drug discovery expertise and an industrialized platform that can drive new innovative small molecule compounds into the clinic. In addition, Evotec has built a deep internal knowledge base in the treatment of diseases related to neuroscience, pain, oncology, inflammation and metabolic diseases. Leveraging these skills and expertise the Company intends to develop best-in-class differentiated therapeutics and deliver superior science-driven discovery alliances with pharmaceutical and biotechnology companies. Evotec has long-term discovery alliances with partners including Boehringer Ingelheim, MedImmune, CHDI, Genentech, Novartis, Ono Pharmaceutical and Roche. Evotec has product candidates in clinical development and a series of preclinical compounds and development partnerships, including for example a strategic alliance with Roche for the EVT 100 compound family, subtype selective NMDA receptor antagonists for use in treatment-resistant depression and an alliance in the field of diabetes with Andromeda (Teva). Most recently, the Company has established a top-class beta cell technology platform, which collaborates with the Harvard University for the discovery of novel potentially disease modifying approaches to treat diabetes. For additional information please go to www.evotec.com.

Forward-Looking Statements — Information set forth in this press release contains forward-looking statements, which involve a number of risks and uncertainties. Such forward-looking statements include, but are not limited to, statements regarding our expectation that our current cash, cash equivalents, investments, and operating revenues will be sufficient to fund our planned activities beyond 2015; our financial outlook for 2011 and 2012, including statements regarding our expected operating results and financing and financial position, our belief that our cash situation should remain strong throughout 2011, and our expected liquidity at the end of 2011; our revised business model providing a sound basis for long-term sustainable growth; the anticipated advantages of our acquisitions and collaborations, including the expected revenue contribution from our acquisition of Kinaxo Biotechnologies GmbH; our expectations regarding the market for drug discovery alliances, including anticipated growth of the pharmaceutical outsourcing drug discovery market and the opportunities such growth will provide us, and our ability to take advantage of such market developments; our goal to reach operating profitability and to generate cash sustainable by 2012; our beliefs regarding the sufficiency of our existing liquidity reserves; our capital-raising plans; the expected timing of the effectiveness of our deregistration with the SEC; our expectations and assumptions concerning regulatory, clinical, and business strategies; and the progress of our clinical development programs and timing of the results of our clinical trials, strategic collaborations, acquisitions, and management's plans, objectives and strategies. These 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 forward-looking statements. In particular, the risks and uncertainties include, among other things: risks that we may be unable to achieve the anticipated benefits of our revised business model or recognise the results of our revised business model within expected timeframes; risks that we will not achieve the anticipated benefits of our collaborations, partnerships and acquisitions in the timeframes expected, or at all; risks that product candidates may fail in the clinic or may not be successfully marketed or manufactured; risks relating to our ability to advance the development of product candidates currently in the pipeline or in clinical trials; our inability to further identify, develop and achieve commercial success for new products and technologies; the risk that competing products may be more successful; our inability to interest potential partners in our technologies and products; our inability to achieve commercial success for our products and technologies; our inability to protect our intellectual property and the cost of enforcing or defending our intellectual property rights; our failure to comply with regulations relating to our products and product candidates, including FDA requirements; the risk that the FDA may interpret the results of our studies differently than we have; the risk that clinical trials may not result in marketable products; the risk that we may be unable to successfully secure regulatory approval of and market our drug candidates; risks of new, changing and competitive technologies and regulations in the U.S. and internationally; general worldwide economic conditions and related uncertainties; future legislative, regulatory, or tax changes as well as other economic, business and/or competitive factors; and the effect of exchange rate fluctuations on our international operations. The list of risks above is not exhaustive. This press release contains additional factors that could impact our businesses and financial performance. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to such statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.

Fiscal Year 2010 Results

Key Figures of Consolidated Income Statements
Evotec AG and Subsidiaries
       
Euro in thousands except share data and per share data
  January to December Change
  2010 2009 in %
       
Revenues 55,262 42,683 29
Gross margin in % 44.1 43.2 2
       
Research and development expenses 6,116 20,947 (71)
Selling, general and administrative expenses 15,956 16,695 (4)
Amortisation and impairment 672 18,293 (96)
Restructuring expenses -- 4,849 --
Other operating income 4,536 4,044 12
Other operating expenses 4,423 3,980 11
       
Operating result 1,715 (42,299) 104
Operating result* 1,715 (19,612) 109
       
Net result 2,985 (45,497) 107
       
Weighted average shares outstanding 109,012,908 106,845,831  
Net loss per share (basic and diluted) 0.03 (0.43) 107
* Before impairment and restructuring expenses.      
 
Key Figures of Consolidated Statement of Financial Positions
Evotec AG and Subsidiaries
       
Euro in thousands
  31 Dec 2010 31 Dec 2009 Change in %
       
Cash and investments* 70,401 70,594 --
Working capital (5,039) (6,530) 23
Current and non-current portion of loans and finance lease obligations 11,997 13,205 (9)
Stockholders' equity 132,637 111,487 19
       
Total assets 191,859 146,599 31
* Including auction rate securities in 2009.      
CONTACT: Dr. Werner Lanthaler
         Chief Executive Officer
         +49.(0)40.560 81-242
         +49.(0)40.560 81-333 Fax
         werner.lanthaler@evotec.com
         
         Evotec AG
         Schnackenburgallee 114
         22525 Hamburg (Germany)

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