Evotec Q3 down from 2003
revenues of €16.1 million, down 26 per cent compared to 2003.
Evotec's performance reflects the difficult operating environment
for companies supplying drug discovery technologies.
Evotec attributed the weak performance of the third quarter to the strong Q3 of 2003, citing above average sales in Evotec Technologies following the delivery of a suite of discovery instruments to Pfizer.
While Evotec's 2004 sales and order book as of September amounted to €71 million, the first half of 2004 has seen the contract service industry experience substantial downward pressure on revenue. The period saw Evotec shift its focus, forming strategic alliances and entering new projects. Its newly formed collaboration with Boehringer Ingelheim as well as its work in metabolic diseases is sure to be noted by the industry.
Jörn Aldag, President and Chief Executive Officer of Evotec OAI said: "We have advanced two out of four projects in our Metabolic Disease venture, which is part of our Discovery Programs Division, into lead optimisation. We have built momentum in our contract services business, both through new customers and innovative higher value deal structures."
The company are set to expand its operations outside of Europe with the construction of the first EVOscreen ultra-high throughput (uHTS)-screening centre in Asia. On a strategic level, its location will present the company with a foothold on the lucrative Asian uHTS market.
Evotec's Discovery and Development services division reported lower-than-expected figures, which the company claimed was due to the scaling down or the termination of discovery and development contracts. Indeed, 2003 saw many customers shifting budgets from preclinical discovery into clinical development.
Evotec's Tools and Technologies division experienced a strong 2003 primarily on the basis of a single large contract with its EVOscreen partner Pfizer. While this deal has proved fruitful, Evotec have stressed the need to reduce its dependence on the company.
Aldag commented: "This performance is of utmost strategic importance to us in an environment where the traditional fee-for-service outsourcing business is under continued pressure. We are in a strong financial position to take the company forward and benefit from an industry upswing."
