The Data-Driven R&D Autobahn to Cures - Global leadership in data, science, multimodality & access - Evotec
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The Data-Driven
R&D Autobahn to Cures
Global leadership in data, science,
multimodality & access
Evotec SE, Company Presentation, June 2022
Disclaimer This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries) is being delivered on behalf of Evotec SE (the “Company”, “we,” “our” or “us”). This presentation is made pursuant to Section 5(d) and/or Rule 163B of the Securities Act of 1933, as amended, and is intended solely for investors that are qualified institutional buyers or certain institutional accredited investors solely for the purposes of familiarizing such investors with the Company. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy Evotec securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No representations or warranties, express or implied, are made as to the accuracy or completeness of the statements, estimates, projections or assumptions contained in the presentation, and neither the Company nor any of its directors, officers, employees, affiliates, agents, advisors or representatives shall have any liability relating thereto. Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business operations and financial performance and condition. Many of the forward-looking statements contained in this presentation can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “should,” “target,” “would” and other similar expressions that are predictions of or indicate future events and future trends, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. The forward-looking statements contained in this presentation speak only as of the date of this presentation, and unless otherwise required by law, we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Non-IFRS Measures This presentation contains references to certain non-IFRS measures including EBITDA and Adjusted EBITDA, each of which are not recognized under International Financial Reporting Standards (“IFRS”). The Company believes that non-IFRS financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-IFRS financial information to supplement their IFRS results. The non-IFRS financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with IFRS, and may be different from similarly titled non-IFRS measures used by other companies. EBITDA and Adjusted EBITDA each have limitations as an analytical tool, respectively, and you should not consider any of these measures either in isolation or as a substitute for other methods of analyzing the results as reported under IFRS. Our management team uses these non-IFRS financial measures to evaluate our profitability and efficiency, to compare operating results to prior periods, and to measure and allocate financial resources internally. However, management does not consider such non-IFRS measures in isolation or as an alternative to measures determined in accordance with IFRS. See appendix to this presentation for a reconciliation of Adjusted EBITDA to the nearest GAAP measure. PAGE 1
Agenda
Unique business strategy and capabilities to improve efficiency
Precision medicine platforms to improve probability of success
Building a strong growth business and a large royalty pool
PAGE 2
Agenda Unique strategy and capabilities to improve Efficiency & Probabilities of Success PAGE 3
Bringing the industry closer together
Our contribution to the industry
We discover medicines
for difficult to treat diseases
in efficient collaborations
„The goal of We focus on data driven
precision medicine and
Evolution is not early disease relevance to
improve Probabilities of
one single human, Success
it is mankind.“ We built the “shared
economy” in R&D,
designed to result in
Manfred Eigen a large royalty pool
1927–2019, Co-founder of Evotec,
Nobel Prize 1967
PAGE 4
Platforms & technologies are high-tech driven & fully integrated
The drug discovery & development innovation hub – Capabilities & expertise overview
Industry needs Capabilities & Expertise (illustrative)
R&D efficiency
platforms1)
Precision medi-
cine platforms
Just – Evotec
Biologics1)
Right modality
drug design
PAGE 5 1) Also partly accessible as stand alone “Fee for Service” or FTE-rate based offerings
Faster and more learning curves illustrate … “just the beginning”
“Evotec inside” (selected KPI’s 2020/21)
62 142 12 24 > 250
Patent applications High-throughput screens Pre-clinical development INDiGO® programs GMP API batches
candidates (PDC)
>10 >200 bn >440 bn >10,000 >100
Precision platforms Data points of iPSC-derived cells compounds assessed EVOPanHunter projects
as protein degraders
>15 20 >40,000 >20 >90%
Biologics projects Months construction time samples in HT analytics and consecutive successful J.POD® cGMP qualification
functional characterisation manufacturing runs activities completed
>130 >90 >20 >10 >10
Co-owned pipeline assets Small molecules Biologics Cell & gene therapy Multiple modalities
PAGE 6
We establish the “sharing economy” in R&D
Our network of > 500 partners
Partners Collaboration priorities
> 40 Flexible access to
Pharma technologies and assets
> 400 Integrated drug discovery &
Biotech development processes More
efficient &
more precise
> 30 Funding & operations for drugs
Academia industrial translation
> 10 Data pooling & advanced
Foundations analytics of patient data
PAGE 7
Bringing Probability of Success up is key leverage for better IRR1)
Current challenges in R&D
Key challenges
Development costs per asset increase
Cost per asset doubled since 2010, in US$ m
R&D model is Challenging returns due to ~2,500
inefficient “too late and “expensive failure”
1,188 +100%
“One drug fits all” 90% of drugs are efficacious 2010 2020
is outdated only in 50% of patients
Commercial returns decrease
New modalities did not 9% of Phase I biologics IRR since 20104)
solve all problems receive approval2) ~10
-80%
~23)
Emerging technologies Precision medicine toolkit,
are still very fragmented OMICS platforms, and AI/ML 2010 2020
1) IRR = Internal Rate of Return
PAGE 8 2) https://pharmaintelligence.informa.com/~/media/informa-shop-window/pharma/2021/files/reports/2021-clinical-development-success-rates-2011-2020-v17.pdf
3 excl. Covid-19 vaccines
4) Sources: Deloitte – Centre for Health Solutions: Ten years on measuring the return of pharmaceutical innovation 2020; Evaluate Pharma – World Preview 2018 / World Preview 2020
Integrating and accelerating better data for more precise medicine
What does ‘data-driven’ mean in practice?
Multiple sources to drive innovation
AI-enabled Data
small R&D integration
molecules efficiency EVOiR&D
RNA Linking platforms
Single
analytics genetic, Precision
cell tech-
nologies Structures & medicine
Functions Precision
Molecular EVOpanOmics &
medicine
databases EVOpanHunter
platforms
Safety AI-derived Cell
prediction biologics Tx
Just –
Quantum
Evotec EVOaccess
Mass simulation Biologics
iPSCs Spectro-
metry
Right
Spatial
multi-Omics CRISPR- Small modality EVOmodality
Gene
based Tx molecule drug design
Dx/Tx RNA-binders
Data aggregation
PAGE 9Still a highly fragmented industry
Selected AI/ML companies (Industry landscape – Illustrative & highly simplified)
Many players at Data integration
work to initiate a
new “data driven” Patient
industry paradigm outcomes
Academic
data
Data
Early Discovery Approval and post-approval aggregation
PAGE 10Significant improvements of PoS are possible
How we can improve PoS in early R&D (Examples/simplified)
Todays use of AI/ML Integrated drug design
Data integration
in %
Target identification ~10% Efficacy &
safety predictions
System biology to better understand diseases
e.g. associating existing targets with new diseases ~10%
iPSC driven
disease relevance
Lead optimisation ~10%
In silico classification of targets via computational
chemistry e.g. better prioritised drugs accelerated
Molecular data &
~10% patient stratification
Trial design
Understanding sub populations via biomarkers ‘Standard’ success
e.g. better patient stratification for discovery project
Data aggregation
PAGE 11Agenda Precision medicine platforms to improve probability of success PAGE 12
Precision medicine is the only path to improved medicine
Leading AI/ML driven drug discovery & development platforms
Molecular patient Targeted disease models & Clinical diagnostics
databases precision medicine approaches and biomarkers
Re-defining health and Focus on early Precision diagnostics and
disease via molecular disease relevance tracking of diseases
disease profiles
Transcriptomics and proteomics data at industrial scale
Multiple patient-derived data bases, e.g. CKD database (>10,000 patients; >600 billion data points)
User friendly AI/ML driven multi-omics analysis platform
Exceeding industry standards in predicting drug safety (e.g.: liver injury 86% vs. 70%)
One of the largest and most sophisticated iPSC platforms for drug discovery in industry
First iPSC-derived drug candidate in clinic, large pipeline evolving in drug discovery and cell therapy
PAGE 13Deep understanding of biology for precision medicine
The Evotec Molecular Patient Database (E.MPD)
Tuber- Liver
culosis disease
Multiple rare Infectious
diseases diseases
Autoimmune
CNS disease
Kidney
diseases Fibrosis
Lung & Multiple
cancers Inflammation
Womens‘ …
Health
PAGE 14 EVOpanOmics: Genomics, Transcriptomics, Proteomics and Metabolomics
EVOpanHunter: Bioinformatics, AI/MLE.MPD core component of alliances in CKD
CKD strategic drug discovery deals
*
2016/17 2018/19 2020 2021 2022
Upfront Vifor funded: € 25 m Upfront Upfront Upfront
Research funding 50% on all projects Research funding Research funding Research funding
Milestones JV: NepThera Milestones Milestones Milestones
> € 300 m per > € 150 m per Tiered royalties US$ 180 m per
product product product
Tiered royalties Tiered royalties Tiered royalties
From Target identification & validation, via biomarker identification, to patient stratification
PAGE 15 * Pending acquisition by CSL Limited not closed, yetProtein degradation partnership with BMS becomes strategic
Using EVOpanOmics & EVOpanHunter – Quantum Leap in 2022
&
Proteomics approach
May 2020 Oct 2020 Mar 2021 June 2021 May 2022
to targeted protein Screening Project Double-digit New collaboration 8-year extension
degradation milestone initiation million extension in undisclosed Upfront $ 200 m
therapeutic area Deal value > $ 5bn
Development of novel
therapies for a broad range
of diseases
2018 2019 2020 2021 2022
2022
Upfront US$ 65 m
June 2020 Dec 2020 May 2021
Potential milestones
US$ 10 m – Second project Third project
> US$ 250 m per project
Expansion initiation initiation
Double-digit royalties
PAGE 16BMS & Evotec create the globally leading TPD1) alliance
Analysis of selected licensing deals – strong momentum in the last 2 years
Deal value 5.0
in $ bn
2.5 Nurix/
Sanofi
Kymera/
Sanofi
2.0 Vividion/
Bayer
Lycia/
Arvinas/
Lilly Foghorn/
1.5 Pfizer
Lilly
Amphista/ Seed/
BMS
1.0 Amphista/ Lilly
Merck Plexium/
Amgen
0.5
0
Size of bubble denotes breadth of pipeline Discovery Pre-Clinical Clinical
PAGE 17 1) Targeted Protein Degradation
Source: Company webpages, Evotec analysisTransformative iPSC-based disease modelling & cell therapy
Industry leading iPSC platform
107
Global precision “IPS cells are a powerful tool to cure intractable diseases “Evotec’s iPSC
CAGR
medicine market1) 63 ~11% because they can be made from patients’ somatic cells.” platform with the goal
in US$ bn Shinya Yamanaka, Nobel prize laureate to industrialise iPSC-
based drug screening”
2020 2025 Largest and most
sophisticated iPSC
15.7 platform in the industry
Global cell
therapy market2) CAGR >300 patient-derived
7.8 ~15%
in US$ bn cell lines across
15+ disease areas
2020 2025 Optimized for
high reproducibility,
2.3 high throughput
Global induced CAGR and robustness
1.6
pluripotent stem ~7%
cell (iPSC) Market First iPSC-derived
in US$ bn drug candidate
entered clinical trials
2020 2025 in 2021
PAGE 18 1) https://www.gminsights.com/ Feb 2020, Evotec estimates
2) https://www.grandviewresearch.com/industry-analysis/cell-therapy-market, Evotec estimates
https://www.researchandmarkets.com/reports/4805485/induced-pluripotent-stem-cell-ipsc-globalProving paradigm shift in iPSC-based discovery BMS alliance
Using EVOpanOmics & EVOpanHunter – Development since 2016
&
iPSC alliance in
2017 Oct 2018 Sep 2019 Sep 2020 Sep 2021 Nov 2021
neurodegeneration US$ 5 m – US$ 6 m – US$ 30 m – US$ 6 m – US$ 20 m – US$ 40 m –
Designation
Development of novel Screening
milestone
Expansion
milestone
Extension Expansion
milestone
1st IND
Target: eIF2b of additional
therapies for a broad programmes
range of neuro-
degenerative diseases
First programme 2016 2017 2018 2019 2020 2021
EVT8683 (eIF2b
activator) started clinical
development 2021 Upfront US$ 45 m May 2018 Dec 2018 Jan 2020 Dec 2020 Oct 2021
Phase I read-out Potential milestones US$ 6 m – US$ 14 m – US$ 6 m – US$ 6 m – US$ 9 m –
> US$ 250 m per project Expansion Lead optimisation Expansion Expansion Expansion
expected in 2022 Double-digit royalties milestone payment milestone milestone milestone
PAGE 19Delivering off-the-shelf cell therapy products to patients
EVOcells – seamless R&D continuum integrating discovery, development and manufacturing
iPSC-based QC & upscaling Pre-clinical Clinical manufacturing Marked supply
iPSC Platform cell types disease development &
gene editing expertise CMC Clinical development Marketing and sales
iPSC-based cell types ArrayCGH, karyotyping, Single cell sequencing 3D expansion Upscaling Cell QC cGMP production
WGS
Most advanced programme: E.iBeta – iPSC-based islet-like clusters mimicking human islet cells
Partnership with Sernova – iPSC-based beta cell replacement therapy for insulin-dependent Diabetes
using Sernova’s Cell PouchTM, an implantable medical device for immune protection of E.iBeta
Filing of IND expected in 2024
Acquisition of Rigenerand securing reproducible and cGMP-compatible production of E.iBeta batches
and creating the broadest and most widely integrated cell therapy platform in the industry
PAGE 20 Evotec PartnerEnabling global access to modern biologics
Efficient and flexible biologics manufacturing (EVOaccess)
Large and diverse
library to generate
antibodies
Reviews and improves native
antibody sequences to enhance
manufacturability and stability
J.DESIGN
Disruptive, intensified production
Modular, flexible process from a few kilograms to
“PODs” with most metric tons in the same facility
capital efficient set-up
Partners e.g.:
PAGE 21Continuous process outperforming fed batch 20x
Example: More intensification, higher productivity, lower COGMs
Fully end-to-end continuous process for late-stage products (> 25-day production)
Kg DS1) per Bioreactor
40 1,000L
35
30
25
20
15 500L
10
5
0
Fed batch Hybrid 15d E2E 25d
PAGE 22
1) DS = Drug SubstanceAgenda Building a strong growth business and a large royalty pool PAGE 23
We create long-term value through three collaboration routes
Service fees, milestones, and royalties for optimal value mix
Industry needs A “Fee-for-service” B EVOroyalty C EVOequity
R&D efficiency
platforms
Precision medi-
cine platforms
Just – Evotec
Biologics
Multimodality
drug design
PAGE 24A “Fee-for-service”
Significant expansion of alliances is basis for long-term success
Attraction, Extension, Retention
Attraction Extension Structural Retention ≥90%
+25%
355
315 100 +23% 100%
283
80 80%
60 60%
40 40%
20 20%
0 0%
2019 2020 2021 2019 2020 2021 2019 2020 2021
New customers during the year No. of customers > € 1 m revenues Customer relation rate
Customer base more diversified; Integrated drug discover & development Solid customer retention rates
revenues have grown significantly offering yields increasing “share of Strong basis for double-digit growth
wallet”
Faster and better results versus in-house
infrastructures
PAGE 25B EVOroyalty
Building a robust, de-risked pipeline within EVOroyalty
High-value partnerships offer path to increased royalties
Pipeline assets in 2021 Number of projects1)
Small
molecules > 90
Biologics > 20
>130
>170
2025 expected
2025 goal
Cell and
Gene therapy > 10 2021
49
2015
Multiple
modalities2) > 10
PAGE 26 1) Excluding EVOequity
2) For these projects multiple modalities are currently being exploredB EVOroyalty
Despite P2x3 set back - The iceberg keeps growing
In total >220 projects: ~180 in partnerships, >40 internal R&D projects
Inflammation & Global
Neuroscience & Pain Oncology Metabolic Diseases Virology Anti-bacterial
Immunology1) Health
SK
Ph3 Jingxin
bioscience
Ph2 P2X3 - CC P2X3 - OAB P2X3 - DNP Bayer – B1 BI/Xynomic Carrick P2X3 - Endo
Clinical
Centrexion Exscientia Carrick Bayer
Ph1
Bayer Bayer BMS Exscientia Kazia Carrick Conba Bayer Topas ND
Aeovian Exscientia EVT ND Fibrocor Topas Sanofi
Preclinical Bayer
Bayer Exscientia Exscientia Carrick Bayer E.iBETA Topas Topas Exscientia ND Nosopharm Forge
P2X3 FU
Sanofi/ LAB150
ND ND Facio Apeiron ND Autobahn Eternygen Exscientia
ND ND Argobio ND ND EVT Immunitas NephThera Topas LAB282 ND
Bayer ND
ND EVT EVT LAB282 ND ND EVT Exscientia Breakpoint ND LAB282 Celmatix Fibrocor Forge ND
ND
EVT Autobahn DarkBlue QRbeta EVT ND ND Celmatix
ND
ND EVT Breakpoint LAB282 ND EVT NephThera ND ND Blacksmith ND
Danube EVT
ND EVT LAB282 EVT EVT Carrick Blacksmith EVT EVT ND Autobahn Fibrocor LAB282 Myxob Forge ND
Labs
Discovery ND EVT/MF ND ND ND
ND Autobahn ND EVT/MF EVT Immunitas ND ND EVT Celmatix ND
ND ND Cajal Neuro ND EVT/MF EVT Quantro BELAB1407 ND ND EVT CureXsys ND
ND ND EVT Facio ND EVT/Indiv EVT Ananke BELAB2122 ND EVT EVT Exscientia ND ND ND
ND ND EVT Exscientia ND EVT EVT Autobahn LAB282 ND EVT LAB282 ND Fibrocor ND ND ND ND
ND ND EVT CureXsys LAB282 ND EVT EVT Exscientia LAB150 ND EVT LAB150 ND LAB150 ND Exscientia ND Forge ND
ND ND EVT EVT LAB150 ND ND EVT OxVax Argobio ND EVT N=4 NephThera EVT LAB282 ND LAB282 ND Exscientia ND
Partnered Pipeline Unpartnered Pipeline Equity Pipeline Bridges Pipeline
PAGE 27 Also includes Women‘s Health, Respiratory projects
1)
The Equity Pipeline does not contain programs from EVT/partners that are not publically disclosedB EVOroyalty
“Evotec Inside”
Steady stream of high-value catalysts
Molecule Therapeutic Area/Indication Partner Discovery Pre-clinical Phase I Phase II Phase III
Selected pipeline events within next 12 – 24 months EVT201 Insomnia (GABA-A)
Not Disclosed Infectious Disease (Antibody)
Phase III & registration (CHN) JingXin in insomnia BAY2395840 Diabetic Neuropathic Pain (B1)
(EVT201) CT7001 Oncology (CDK7)
Phase II data with Bayer in DNP (BAY2395840) XP-105
EVT401
Oncology (mTORC1/2)
Immunology & Inflammation (P2X7)
Phase II initiation with Bayer in Gynaecology BAY2328065 Gynaecology
(BAY2395840) EXS21546 Oncology (various programmes)
Clinical
CNTX 6016 Pain (CB2)
Phase I data in Chikungunya virus (EVT894) EVT894 Chikungunya (Antibody)
Phase I data with BMS in CNS (EVT8683) Not Disclosed Neuroscience & Pain n.a.
Not Disclosed Neuroscience & Pain n.a.
Phase I data with Exscientia in Oncology (EXS21546) EVT801 Oncology (VEGFR3)
Phase I data with Kazia in Oncology (EVT801) EVT8683 Neurodegeneration (eIF2b activator)
TPM203 Pemphigus Vulgaris (ND)
Phase I initiation in Covid-19 / HBV (EVT075) CT7001 Oncology (CDK7)
Phase I Initiation with Bayer in Kidney diseases CT7001 Oncology (CDK7)
APN411 Oncology – Immunotherapy
Phase I Initiation with Kidney diseases with other partners GLPGxxxx Fibrosis (not disclosed)
Pre-clinical
Phase I initiation with BMS in CNS BAYxxxx Nephrology (not disclosed)
QRB001 Metabolic – Diabetes (not disclosed)
Phase I Initiation with BMS in Oncology EVT075 Covid-19 / HBV n.a.
Multiple co-owned equity companies (not outlined here) will Not disclosed Various programmes
EVTxxxx CNS, Metabolic, Pain, … >10 further programmes
progress in clinic (e.g. Topas, Forge, Carrick, Fibrocor, …)
Discovery
Multiple programmes across nephrology, oncology, immunology among other therapeutic areas
PAGE 28 DNP: Diabetic neuropathic pain
CNS: Central nervous systemC EVOequity
EVOequity accelerates co-owning strategy
Operational VC model - diversified portfolio with multiple shots on goal
At Equity Holding (≥20%) or Significant influence
Academia
Partners
& BRIDGEs
Minority Shareholdings (Significant growth step up and investments towards AP 2025
Guidance 2022
Guidance 2022 YE 2021 Implied growth at midpoint
Group revenues € 700 – 720 m
€ 618.0 m ~15%
(at constant fx-rates1)) (€ 690 – 710 m)
Unpartnered R&D2) € 70 – 80 m € 58.1 m ~30%
Adjusted EBITDA3) € 105 – 120 m
€ 107.3 m At least stable
(at constant fx-rates) (€ 95 – 110 m)
Approx. € 300 m investment programme for enabling and supporting growth (e.g. capacity expansion, …)
1) EUR/US$ 1.18; EUR/GBP 0.86
PAGE 30
2) No material FX effects as most R&D efforts are carried out in € area
3) Considerable insecurities given high volatility of energy pricesClear strategy in place
Growth and investment strategy overview – Action Plan 2025
Targeted revenue development Revenue Composition of
(in € m)
composition revenue mix expected
2020 ~20% to change over time
>1,000
while ALL fields
~10% continue to grow
EVT Execute
CAGR Just – Evotec ~70% Shifting to even more
~15% Biologics1)
favourable revenue
618 EVT Innovate mix expected to drive
≥2x increased profitability
501
Goal revenue Just – Evotec Bio-
composition logics growth driven
>25% by use of J.POD®
>40% manufacturing
EVT Execute
First small royalties
Just – Evotec
Biologics1) >30%
from pipeline assets
2020 2021 2022 (e) 2023 (e) 2024 (e) 2025 (e) EVT Innovate
expected in 2025
PAGE 31 1) Just – Evotec Biologics reports under the EVT Execute segmentSetting the pace to accelerate growth along Action Plan 2025
Selected major newsflow 2022
• Undisrupted growth of base business, in-line with AP 2025 (EVOiR&D)
R&D efficiency • New integrated drug discovery & development alliances
platforms • Significant capacity and value chain expansion for all modalities
• New strategic partnerships and expansions of co-owned alliances
Precision medicine • New clinical trial initiations
platforms • Significant progress of later stage co-owned pipeline (EVOroyalty)
• Spin-Offs and investments along Building Blocks of AP 2025 (EVOequity)
• Start of production J.POD® Redmond, WA (US)
Just – • Start of construction J.POD® Toulouse, France (EU)
Evotec Biologics • Evaluation of global network of J.PODs® (EVOaccess)
• Undisrupted growth trend versus 2021 in line with AP 2025
• Growth of unpartnered R&D investments faster than top-line
Group & ESG • Validated science-based targets aligned with 1.5°C goal
• Highly impactful contribution to UN SDG 31)
PAGE 32 1)UN Sustainable Development Goal 3: Improve health and well-being with main targets for us on women’s health, fight against infectious diseases and pandemic preparednessUpcoming important dates
Financial calendar 2022
Quarterly Statement Q1 2022 11 May 2022
Virtual Annual General Meeting 2022 22 June 2022
Half-year 2022 Interim Report 11 August 2022
Quarterly Statement 9M 2022 09 November 2022
PAGE 33Appendix PAGE 34
Unbiased and systematic discovery of molecular glues
From exploratory to strategic partnership
2030
2022
2018 Strategic expansion
May 2022
Exploratory proteomics driven approach
Extend and expand unbiased and systematic
2018 approach to discover new molecular glues
Exploratory proteomics-driven approach to Driven by EVOpanOmics and EVOpanHunter
discover novel molecular glues Goal to build an extensive pipeline of
Proved to be highly productive breakthrough therapies based on molecular glues
PAGE 35Unique potential translates into a strong engagement industry
BMS & Evotec – Global Leadership in TPD
The expanding The targeted protein degradation
universe of enabling technologies market, antici-
Targeted Protein Internal TPD R&D focus only pated to be worth over $ 3.3 bn by
Degradation 2030 (CAGR of around 27%)
Unknown or minimal
Partnership activity has grown
TPD R&D focus
significantly between 2014 and
2021 R&D agreements (25%) and
research agreements (23%)
emerged as the most popular types of
partnership models
> $ 5 bn has been invested by private
& public investors since 2014
>180 investors have actively financed
projects / initiatives in this domain
Public (> $ 25 bn mkt. cap) Public (< $ 25 bn mkt. cap) Private / subsidiary Strategic collaboration and/or license agreement
PAGE 36 Sources: https://cen.acs.org/pharmaceuticals/drug-discovery/quest-drug-undruggable/96/i26; https://www.nature.com/articles/nrd892?proof=t
https://www.rootsanalysis.com/reports/view_document/protein-degradation-market/289.html; Guggenheim Securities LLC, 2022Targeted Protein Degradation opens a new path to fight disease
Mechanism of Action of targeted protein degraders
Compound mediated target Target Target degradation Therapeutic
interaction with E3 ligases ubiquitination through proteasome effect
Target protein Molecular glues
E3
UB
E3
E3
E3 ligase PROTACs
PAGE 37Drugging the undruggable harbours enormous potential
Vast majority of the proteome is currently not addressed by small molecules
Human proteome ~30,000 Degradation is a new paradigm Major advantages of degraders
Disease-causing protein
Degrader compounds rely primarily
10%
on binding
Rather than binding and activity
Inhibitor Degrader inhibition
90% Catalytic, event driven, pharmacology
undruggable via Enabling responses at lower
traditional small exposures over longer intervals
molecules
Degradation of target proteins
Less likely to lead to resistance
Pharmacological Targeted protein
inhibition degradation
Undrugged opportunity Classically defined as “druggable” by small molecules / targeted by approved drugs
PAGE 38 Sources: https://cen.acs.org/pharmaceuticals/drug-discovery/quest-drug-undruggable/96/i26; https://www.nature.com/articles/nrd892?proof=t
https://www.rootsanalysis.com/reports/view_document/protein-degradation-market/289.htmlRapidly expanding therapeutic space reflects the potential of TPD
150 TPD projects currently in development
Targeted Protein Current TPD pipeline is dominated
Degradation Therapeutics by PROTAC development
Distribution by Phase of Development Distribution by Therapeutic Area Therapeutic projects within TPD space by modality
4%
1% 6x
5% 9%
3% Autoimmune
13% Disorders
22% Inflammatory
Disorders
41%
Immunological
Disorders
Neurode-
60% generative
Disorders
Oncology
Others 1x
33%
10%
Phase 1 Phase 2 Phase 3 Preclinical Discovery PROTACs Glues
PAGE 39 LLC Research & Roots analysis – Targeted Protein Degradation Market (2nd Edition), 2021-2030Molecular glues are the more attractive degraders
Glues are currently under-represented in the TPD pipeline
Molecular glues PROTAC
Drug like-ness
Pharmacological properties
Synthetic tractability
Discovery path Challenging Rational design
PAGE 40 Nature Reviews Drug Discovery volume 21, pages181–200 (2022)BMS is a leader in targeted protein degradation
Molecular glue targeted protein degraders on market and in clinical development
E3 Highest
Company Degrader Target Indications ligase phase
CC-220 Strong sales
IKZF1/3 Multiple Myeloma CRBN Phase II
(Iberdomide)
Revlimid & Pomalyst together
CC-92480 IKZF1/3 Multiple Myeloma CRBN Phase II > $ 15 bn Sales in 2021
CC-90009 GSPT1 AML CRBN Phase I Strong pipeline
5 CELMoD®s and 1 PROTAC in
Chronic myeloid clinical development
CC-99282 IKZF1/3 leukaemia, non- CRBN Phase I
Hodgkin lymphoma
2 PROTACs and 5 CELMoDs in
full discovery
CC-91633 CK1a AML CRBN Phase I
CFT7455 IKZF1/3 MM CRBN Phase I
IKZF1/3
BTX1188 HM, Solid tumours CRBN Phase I
GSPT1
Solid tumours
DKY709 IKZF2 CRBN Phase I
(NSCLC)
PAGE 41 Nature Reviews Drug Discovery volume 21, pages181–200 (2022);
AML = Acute myeloid leukemia
MM = Multiple myeloma ; HM = Hematologic malignanciesIn a nutshell - Induced pluripotent stem cells are real game changers
Developing new therapeutic options from patient to patient
Patient cells
i.e. fibroblasts • iPSCs directly obtained from patient cells through reprogramming of
• fibroblasts
• blood
Reprogramming • hepatocytes
factors • keratinocytes, etc.
• Different reprogramming methods available
Viral transduction
Induced pluripotent stem cells (iPSCs) DNA-based induction
mRNA transfection
Recombinant proteins
Ectoderm Mesoderm Endoderm Germline
• iPSCs can be differentiated into any human cell type in vitro
Brain, Muscle, Blood, Lung, Sperm, • iPSC offer essentially unlimited cell supply for cell therapy & drug
Skin, Eye Kidney Pancreas, Liver Egg
discovery
Patient-specific disease models
PAGE 42World-leader in industrialized production of iPSC-based cells
>15 cell types, co-cultures and organoids established
What is next?
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
T-cells
Alpha-actinin Islet1/βIII tubulin DDR2 GFAP βIII tubulin/TH Iba1/PU1 MBP/OLIG2 ZO1/Aquaporin Rhodopsin
Skeletal muscle
Hepatocytes
Liver organoids
PTEC – Brain organoids
Dopaminergic Proximal tubular Photoreceptors
Cardiomyocytes Motor neurons Cardiac fibroblasts Astrocytes neurons Microglia Oligodendrocytes epithelial cells Macrophages (rods)
TBR1/βIII tubulin Peripherin/MAP2 ZO-1 Perforin/CTV/Actin L/M Opsin
Retinal pigment Photoreceptors
Forebrain neurons Beta cells Peripheral neurons Podocytes epithelia Natural killer cells (cones)
Neurons/Astrocytes/ Rhodopsin/L/M Opsin
Microglia
Retinal
MSCs organoid
Co-culture: Triple-culture:
neurons neurons
+ astrocytes + astrocytes Podocytes
+ microglia
Glom.
endothelial cells
Nephron-on-a-chip
PAGE 43Proprietary production processes for human iPSC
Industrialized and scalable iPSC differentiation
Generation of E.iBeta
Cell therapies can deliver ‘functional cures’ to patients
Supplying an unlimited quantity of high-quality cells at
low cost are the major obstacles to bring cell therapies
to market
Evotec is a leader in producing iPSC-based cell types
and organoids at highest quality and industrial scale
One of the largest iPSC groups in the industry with >100
people dedicated to developing iPSC-based cells for
drug discovery and cell therapy
Intricate know-how of developmental biology
Focus on industrialization, robustness, scalability, GMP
compatibility and QC
PAGE 44E.iBETA deliver long-term efficacy in preclinical models
Cell composition and quality coupled with process robustness is key for success
E.iBeta generated from a GMP iPSC line in bioreactor Long-term normalization of blood glucose in diabetic mice
following E.iBeta transplantation
Microscopy Histology
C-PEPTIDE
GLUCAGON
SOMATOSTATIN
10x 200µm DAPI
• Optimal cell composition • Long-term stable glucose control demonstrated in
diabetic mice for almost 1-year post-transplantation
• Pharmaceutical quality
• Equipotent to human primary islets (data not shown)
• Translation into GMP manufacturing • Physiological regulation - no hypoglycemia observed
PAGE 45Building a pipeline in iPSC-based cell therapies
Evotec’s internal off-the-shelf cell therapy programs
Pre-clinical Pre-clinical
Field Program / Project Disease area Exploratory research development IND / Phase 1 iPSC-based cell types
iNK IO1
iNK Natural killer cells
iM IO
Anti-tumour cell
therapy iT ab and gd T cells
gd iT IO
iM Macrophages
ab iT IO
iBeta Pancreatic islets
Diabetes
Sernova Cell PouchTM
Regenerative therapy iCM Cardiomyocytes
iCM Heart failure
iMSC Mesenchymal
iMSCs, iMSC
exosomes
Various stromal cells
Immune-modulation
Anti-fibrotic,
iNK, iTreg
auto-immune
PAGE 46 1) Immuno-oncologyJust beginning to deliver significant growth and value
Development from 2015 … to 2021
Co-owned pipeline assets Unpartnered R&D expenses Revenues
in € m in € m
22% 30%
CAGR1) CAGR1)
49 130+ 18 59 128 618
Co-owned companies & BRIDGEs Top-class employees Adjusted EBITDA
in € m
51%
CAGR1)
1 31 1,000 ~4,100+1) 9 107
PAGE 47 1) 2015-2021 Compound Annual Growth RateAction Plans deliver significant value
Action Plans in numbers - “… we are just at the beginning”
2025
2021
2018
2012 Action Plan 2025
2009
Leadership in data, science,
Action Plan 2022 multimodality & access
Action Plan 2016 Aspire global leadership
Action Plan 2012 Build innovation seeds
Restructure for growth
2010 2015 2020
Revenues: € 55 m Revenues: € 128 m Revenues: € 501 m
Adj. EBITDA: € 2 m Adj. EBITDA: € 9 m Adj. EBITDA: € 107 m
R&D investments:1) € 2 m R&D investments:1) € 18 m R&D investments:1) € 69 m
Co-owned projects: 6 Co-owned projects: 49 Co-owned projects: 118
Employees: 519 Employees: 1,000 Employees: 3,572
PAGE 48 1) Including equity investmentsPlatforms & technologies for more precision and efficiency
Evotec today – 15 Sites & more than 4,200 employees
USA Austria Italy Germany UK France
~500 ~40 ~800 ~1,050 ~950 ~900
Branford Orth an der Donau Verona (Campus Hamburg (HQ) & Abingdon Lyon
Princeton Levi-Montalcini) Goettingen (Dorothy Crowfoot Toulouse
Redmond, WA (Manfred Eigen Hodgkin Campus) (Campus Curie)
Seattle 1st
Campus) Alderley Park 2st
J.POD®: Cologne J.POD®:
Watertown Redmond Toulouse
Munich
PAGE 49Great talent pool
Overview Employees – more than 4,200
Interdisciplinary Toxicologists International1)
Biochemists Data scientists 22% Others 19% Italian
Medicinal chemists Process/Analytical chemists
20% German
Molecular biologists Clinicians 18% British
21% French
Cell biologists mAb process engineers
Highly qualified Diverse and experienced
24% 81 nationalities 54% women
76% with at least other degrees
one academic >30% PhDs > 36% with more than
qualification
five years at Evotec
Average age: 38.5 years
PAGE 50 1) The chart exclude the USA for legal reasonsOur purpose is to go VERY long as ONE – #researchneverstops
Sustainable thinking is holistic and ensures long-term success
Best possible environment for The “shared economy” in R&D
employees and potential recruits Integrated platform with >800 partners
Engagement & commitment Sharing values of highest integrity
Leadership & training People Partner Sharing success
Diversity, Equity & Inclusion
Cures for all / Access for all
Resilient business model Purpose We will not stop until all
Financial resilience & independence Profit
Pa-
existing diseases can be cured
Constant investments into the future tients
Precise, patient-centric medicine
Basis for sustainable success Respecting diversity in all dimensions
Acknowledging Principles
for Responsible Investment Protecting the planet
PRI Planet
Compliance with investors’ Commitment to SBTi1)
sustainable investment criteria Responsible use of
Source for funding resilient growth resources
PAGE 51 1) “Science Based Targets Initiative”Our purpose defines a sustainable corporate strategy
Focus on most material topics in a holistic approach
Stakeholders
Investors Supervisory Board Patients Suppliers
People Partners
Recruits Authorities Activists Media
Neighbours
Material Topics
Invest in R&D /
Stakeholder engagement Cyber people Innovation Availability & access to medical treatment
OHS Diversity Carbon emission Waste & Water
KPIs Quality
Engagement &
CO2 per employee Integrity & Speed Covered diseases
Commitment
Retention rate Shared goals Dedicated climate mitigation capex
OUR Foundation Corporate
Culture & People &
Governance &
Values Capabilities
Enabling Systems
PAGE 52Strong team and shareholders supporting sustainable growth
Management & shareholder structure1)
> 9% T. Rowe Price Group
~ 7% Mubadala Investment Management Board Supervisory Board
Company
Werner Lanthaler (CEO) Iris Löw-Friedrich
> 10% Novo Holdings A/S < 5% Roland Oetker/ROI
Long-time experience in Pharma UCB
& biotech
Kasim Kutay
Cord Dohrmann (CSO) Novo Holdings
Long-time experience in
drug discovery Mario Polywka
Ex-Evotec
Matthias Evers (CBO)
Long-time experience in business Roland Sackers
development, technology and QIAGEN
strategy
Elaine Sullivan
~ 68% Free float ~ 1% Management Craig Johnstone (COO) Ex-Lilly
Strong drug discovery and
Number of shares: 177.0 m Constanze Ulmer-Eilfort
commercial track record
PSP Munich
Listings: Frankfurt Stock Exchange (MDAX, TecDAX), Ticker: EVT
NASDAQ Global Select Market (ADS), Ticker: EVO Enno Spillner (CFO)
Long-time experience in finance &
52 week high/low: € 45.70/€ 21.12
biotech
PAGE 53 1) Rounding differences may occurYour contact: Volker Braun Global Head of Investor Relations & ESG +49.(0).40.560 81-775 +49.(0).151 1940 5058 (m) volker.braun@evotec.com
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