Evotec AG: Results of pre-clinical studies lead to reduction in revenues, nevertheless profitable and more than € 90 m cash for 2013 confirmed
Evotec AG announced that it is adjusting its guidance regarding Group revenues.
Certain pre-clinical studies with the NR2B subtype selective NMDA antagonist performed by Evotec’s licensee, Janssen Pharmaceuticals, Inc. did not confirm certain properties of the antagonist and did not justify the planned immediate development progress and therefore do not trigger a significant milestone payment to Evotec in 2013. The project is currently under evaluation at Janssen. Evotec will be obliged to evaluate the impairment of up to € 22 m of intangibles in respect of these “legacy assets” on Evotec´s balance sheet.
Evotec now expects revenues to be between € 84-86 m for the fiscal year 2013. Original guidance for revenues was between € 90-100 m. The operating result before impairment and changes in contingent consideration is still forecasted to be positive, but might no longer be improved from its 2012 level. In the third quarter of 2013, guidance on liquidity was increased to be >€ 90 m and remains unchanged.
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