Revenues at Germany’s Evotec in the first nine months of 2007 fell 23% to 23.2 million euros and its net loss stayed the same at around 23.6 million euros, though the firm is optimistic about its future prospects.
Much of that optimism surrounds its insomnia drug candidate EVT 201 and Evotec has recently presented “compelling proof-of-concept data” from two Phase II studies of the treatment. Chief executive Joern Aldag said that the results confirmed earlier data demonstrating desirable advantages in sleep onset, maintenance and lack of hangover. “We expect the compound to be attractive to potential partners as it addresses key limitations of competitive therapies”, he added, noting that Evotec aims to out-license EVT 201 in 2008.
Mr Aldag noted that the third quarter had been a significant one for the Hamburg-headquartered firm, notably through the sale of its UK-based chemical development business to Aptuit for around 46.4 million euros and the proposed acquisition of US firm Renovis in a stock deal valued at just under $152 million. He claimed that these deals “are major milestones in the implementation of our strategic plan to transition into a drug discovery and development company for central nervous system diseases”.
The CEO concluded by saying that the transactions “significantly strengthen our liquidity” and Renovis adds “complementary pipeline projects to our R&D portfolio and sufficient cash to fund their future development”. Evotec confirmed its full-year estimates, saying that revenues from continuing operations are expected to be in the range of 30-35 million euros.
