Evotec SE (EVO): history, ownership, mission, how it works & makes money

A Brief History of Evotec SE (EVO)

Formation and Early Years

Evotec AG was founded in 1993 in Hamburg, Germany, by Dr. Werner Lanthaler, Dr. Klaus Schaefer, and Dr. Karl-Heinz Wurth. The company initially focused on drug discovery and development services.

Growth and Expansion

In 2000, Evotec went public on the Frankfurt Stock Exchange. The company began expanding its services to include integrated drug discovery and development, catering to pharmaceutical companies and biotech firms.

Key Milestones and Acquisitions

Throughout the 2000s, Evotec made significant acquisitions, enhancing its operational capabilities:

• 2003: Acquisition of the drug discovery business of the German biotech company, MDS Pharma Services.
• 2011: Acquisition of the medicinal chemistry and discovery services business from the UK-based company, Optimer Pharmaceuticals.
• 2014: Acquisition of the Dutch pharmaceutical company, Sanofi’s diabetes drug development business.
• 2017: Acquisition of the US-based company, Aptuit for $300 million, which expanded Evotec's services in the drug development sector.

Recent Financial Performance

As of Q3 2023, Evotec reported revenue of €252.6 million for the first nine months of the year, reflecting a growth of over 13% year-on-year. The company's net profit for the same period stood at €21.9 million.

Collaborations and Partnerships

Evotec has established numerous collaborations with leading pharmaceutical companies:

• Boehringer Ingelheim: Collaboration in drug discovery and development.
• Sanofi: Multiple projects focused on diabetes and oncology.
• Celgene (now part of Bristol-Myers Squibb): Strategic partnership aimed at advancing drug development.

Global Presence

Evotec operates in multiple countries with major facilities located in:

• Germany: Hamburg, Munich, Göttingen
• United States: New York, Princeton
• France: Lyon
• United Kingdom: Abingdon

Stock Performance and Market Capitalization

As of October 2023, Evotec’s share price was approximately €19.50. The market capitalization of the company is around €2.87 billion.

Research and Development Focus

Evotec invests significantly in R&D, dedicating approximately €75 million annually. The areas of focus include:

• Oncology
• Neuroscience
• Metabolic diseases
• Infectious diseases

Financial Overview

Conclusion of Recent Activities

Evotec is recognized for its cutting-edge technology and robust partnerships within the pharmaceutical sector, marking its position as a leader in drug discovery and development.

A Who Owns Evotec SE (EVO)

Shareholder Composition

The ownership structure of Evotec SE (EVO) is comprised of various institutional and private investors. As of the latest available data from the end of Q3 2023, the following breakdown illustrates the major shareholders:

Major Institutional Investors

Institutional investors play a pivotal role in the ownership of Evotec SE. The following list includes prominent institutional shareholders as per recent filings:

• BlackRock, Inc. - 5.1%
• Fidelity Management & Research Company - 4.5%
• Baillie Gifford & Co. - 3.8%
• J.P. Morgan Asset Management - 3.4%

Recent Stock Performance

Evotec SE's stock performance is a crucial factor influencing ownership dynamics. As of October 2023, the closing price of EVO was €23.50. The stock has seen the following price changes over the last year:

Market Capitalization

The market capitalization of Evotec SE is a critical indicator of its financial position. As of October 2023, the market cap is approximately:

Shareholder Voting Rights

Ownership of Evotec SE shares entails specific voting rights. Each share typically gives the holder one vote at the annual general meetings (AGMs). The distribution of votes among major shareholders is as follows:

Recent News and Developments

Recent announcements regarding Evotec’s strategic partnerships and financial performance have influenced market perceptions:

• Partnership with major pharmaceutical companies in Q3 2023
• Q2 2023 revenue reported at €125 million, a growth of 15% year-over-year
• Recent expansion into new markets in Asia, enhancing presence

Evotec SE (EVO) Mission Statement

Core Mission Statement

Evotec SE's mission is to leverage its cutting-edge technology, extensive expertise, and strategic collaborations to accelerate the development of innovative therapies for patients in need. The company aims to provide efficient and high-quality drug discovery and development solutions, benefiting both partners and patients.

Strategic Objectives

• Enhance drug discovery capabilities through innovative platforms.
• Expand partnerships within the pharmaceutical and biotechnology industries.
• Increase value creation through operational excellence.
• Commit to sustainability and ethical practices in drug development.

Financial Overview

As of Q3 2023, Evotec SE reported a revenue of approximately €574 million. The company has shown a consistent revenue growth trajectory with a compound annual growth rate (CAGR) of 17% over the last five years.

Partnerships and Collaborations

Evotec has entered into several strategic partnerships aimed at enhancing its research capabilities and expanding its therapeutic focus. Notable collaborations include:

• Partnership with Bayer for the development of novel pharmaceuticals.
• Collaboration with Sanofi focused on metabolic diseases.
• Alliance with Roche to optimize drug discovery processes.

Patient-Centric Approach

Evotec SE emphasizes its commitment to putting patients at the center of its mission. The company is engaged in multiple initiatives aimed at improving patient outcomes through innovative therapies, including:

• Identifying unmet medical needs.
• Developing targeted therapies in oncology.
• Focusing on neurodegenerative diseases and regenerative medicine.

Sustainability Initiatives

In alignment with its mission, Evotec is committed to sustainability in its operations. The company has set targets to reduce its carbon footprint by 30% by 2025 and is investing in green technologies for its facilities.

Global Reach

With a presence in multiple countries, Evotec SE operates across various regions, enhancing its global footprint in drug discovery and development. The company's locations include:

• Germany
• United States
• United Kingdom
• France
• China

Technological Innovations

Evotec continues to invest in technological advancements, focusing on digitalization and automation to streamline drug development processes. The incorporation of AI and machine learning is pivotal in enhancing efficiency and effectiveness in research.

How Evotec SE (EVO) Works

Business Model

Evotec SE operates primarily in the biopharmaceutical sector, offering integrated drug discovery and development services. The company collaborates with various pharmaceutical and biotechnology companies to provide innovative solutions.

Key Financial Metrics

Core Services

Evotec offers a range of services to support drug discovery and development, including:

• High Throughput Screening
• Medicinal Chemistry
• Biologics and Protein Production
• Preclinical Development
• Clinical Development

Partnerships and Collaborations

Evotec has established partnerships with several leading pharmaceutical companies, enhancing its service offerings:

• Sanofi
• Boehringer Ingelheim
• Celgene
• Teva
• f. Hoffmann-La Roche

Market Position

As of 2023, Evotec is recognized as one of the leading drug discovery companies globally. The company has expanded its operational footprint across Europe and North America.

Employee Statistics

Recent Developments

Evotec is engaged in multiple innovative projects focusing on:

• Targeted Therapies
• Gene Therapy
• Artificial Intelligence in Drug Discovery
• Cell and Gene Modulation Programs

Geographical Presence

Share Performance

As of October 2023, Evotec's share price is approximately €23.50 with a market capitalization of around €3.5 billion.

Future Outlook

Evotec is targeting a 15% annual growth rate in revenues through 2025, with continued investments in technology and strategic partnerships.

How Evotec SE (EVO) Makes Money

Revenue Streams

Evotec SE generates revenue through various streams, primarily by offering drug discovery and development services. The key revenue sources include:

• Collaboration Agreements: Revenue from partnerships with pharmaceutical and biotechnology companies.
• Service Fees: Fees for research services in drug development.
• Drug Development Collaborations: Joint projects that involve financial contributions from partners.
• Licensing Agreements: Income from licensing proprietary technologies and drug candidates.
• Revenue from Products: Sales from proprietary products and therapies.

Financial Performance

For the fiscal year 2022, Evotec reported the following financial figures:

Collaboration Agreements

Evotec has established numerous collaboration agreements with leading pharmaceutical companies. As of 2023, the company had over 40 ongoing collaborations. Notable collaborations include:

• Partnership with Bayer AG
• Collaboration with Sanofi
• Alliance with Celgene
• Strategic partnership with Roche

These collaborations have contributed significantly to the company's financial health, with contractually secured revenues reaching over 200 million EUR annually from these partnerships.

Service Fees and Research Services

Evotec's service fees are derived from providing specialized research services, including:

• Hit identification
• Lead optimization
• Preclinical development

The revenue from service fees amounted to approximately 250 million EUR in 2022, showcasing a year-on-year growth of 15%.

Licensing Agreements

Licensing agreements play a crucial role in Evotec's revenue structure. As of 2023, the company had successfully negotiated licensing deals that generated revenues of around 30 million EUR.

These agreements often involve technology transfer and upfront payments, as well as milestone payments tied to development progress.

Product Revenues

Evotec has developed and commercialized proprietary products that contribute directly to its revenue. For the fiscal year 2022, product sales had a reported value of around 5 million EUR.

Future Growth Potential

Looking forward, Evotec aims to expand its business through:

• Increased number of collaborations
• Expansion into emerging markets
• Advancements in proprietary drug development
• Investment in innovative technologies

The anticipated revenue growth from these initiatives is projected to range from 10% to 20% annually over the next five years.