Evotec's 2007 net loss narrows to 11.2M euros

Evotec AG's full-year 2007 revenues totaled 54.4 million euros ($86.2 million) versus 84.7 million euros the year before, despite which the firm posted an improved loss of 11.2 million euros from 27.7 million euros, driven by strong progress in its clinical pipeline and four major corporate transactions. These included the March 2007 acquisition of French biopharmaceutical group Neuro3d, the 23.0 million-euro sale of Evotec Technologies to USA-based PerkinElmer (Marketletter December 11, 2006), as well as the sale of the Chemical Development Business and the proposed acquisition of Renovis (Marketletter September 24, 2007).

In 2007, net loss of the continuing business increased to 48.1 million euros vs 29.0 million euros, as operating loss amounted to 58.1 million euros vs 34.5 million euros, resulting mainly from the company's increased investments in R&D as well as lower gross profit and impairment. Total R&D costs rose 22% to 37.0 million euros due to the sizeable clinical development programs for EVT 201, EVT 302 and the EVT 100 family.

Evotec's revenues from the continuing business totaled 32.9 million euros, a decrease of 19%. Almost half of this effect was due to the delay in receipt of milestone payments, which are now expected in 2008. Another contributor was a 86% drop in library synthesis revenues following the successful completion of the multi-year collaboration with US drug major Merck & Co, while further pressure came from adverse exchange rates. Adjusting for these factors, revenues of the ongoing business would have grown by 9%, the firm stated.