Financial Data and Key Metrics Changes - In H1 2025, group revenues reached €371 million, a 5% decrease compared to 2024, primarily due to an 11% decline in DMPD revenues to €269 million, influenced by a temporary decline in BMS revenues [17][18] - Just Evotec Biologics (JEP) achieved €102.2 million in revenue, reflecting a 16% year-over-year growth, driven by strong demand from non-Sandoz and DoD customers [18][19] - Adjusted group EBITDA was negative €1.9 million, with a strong contribution of €7.5 million from JEP, offsetting lower operational leverage from the DMPD segment [19][20] Business Line Data and Key Metrics Changes - DMPD segment saw an 11% revenue decline, attributed to a temporary effect in the BMS collaboration and continued softness in the early drug discovery market [10][17] - JEP segment outperformed with a 16% revenue growth year-over-year, driven by expanding customer base and strong demand [13][19] - R&D spending decreased by 35% year-over-year, from €29.3 million in 2024 to €19 million in 2025, aligning with strategic focus [19] Market Data and Key Metrics Changes - The biotech funding landscape remains complex, with early-stage investments lagging behind later-stage funding, leading to cautious spending behavior in early-stage R&D [14][15] - Signs of a modest recovery in funding are emerging, with expectations for a more normalized distribution of funding and project flow in the coming quarters [15] Company Strategy and Development Direction - The company unveiled a new strategy in April 2025, focusing on pioneering drug discovery and development, operational excellence, and sustainable profitable growth [5][8] - The business model is evolving towards two core segments: discovery and preclinical development (DMPD) and Just Evotec Biologics (JEP), with an emphasis on reducing complexity and enhancing accountability [9][12] - The planned sale of the Toulouse site to Sandoz is part of the strategy to lean into JEP's capabilities as a scalable technology provider, marking a significant milestone in the asset-light model [13][35] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing market challenges but expressed confidence in the progress made and the transformation efforts underway [5][6] - The company anticipates improved visibility towards midterm goals following the Sandoz transaction, with a bold aspiration of 8% to 12% revenue CAGR and greater than 20% EBITDA margin by 2028 [40][41] - Management highlighted the importance of leveraging technology and scientific leadership to create new business opportunities and enhance value creation [27][30] Other Important Information - The company is navigating a cautious funding environment, particularly in early-stage biotech, while maintaining a strong pipeline and operational rigor [14][15][20] - The expansion of the molecular patient database is a key strategic initiative, enhancing capabilities in precision medicine and drug discovery [23][25] Q&A Session Summary Question: Guidance for 2025 and recovery in funding - Management does not expect a significant impact from VC funding recovery in the second half of 2025 [44][45] Question: Breakdown of R&D business revenues - Management indicated that the transactional part of the R&D business is shrinking relative to integrated and large partnerships, which are growing [46][47] Question: Value transfer from the Sandoz deal - Management emphasized the importance of technology capabilities and ongoing revenue streams from milestones and royalties, but did not provide specific numbers [48][49][53] Question: Trends in DMPD segment and customer spending - Management noted cautious spending behavior among biotech customers and mixed dynamics among pharma partners [56][60][62] Question: Pricing environment and competition - Management acknowledged increased price sensitivity in the transactional segment but emphasized the value provided in integrated partnerships [69][71] Question: Geographic market dynamics - Management observed different market behaviors, with stronger traction in East Asia compared to the US and Europe [73][74] Question: Mix of JEP business revenue sources - Management stated that current revenue from JEP is a package of drug production and licensing, with a focus on monetizing assets fully [75][78] Question: Rationale for the sale of the Toulouse site - Management reiterated that the sale aligns with the strategic direction and timing for the company [86] Question: Kidney disease projects and revenue proportion - Management highlighted ongoing investments in kidney disease research and partnerships with major pharma companies [90][91] Question: Customer base for JEP growth - Management confirmed that growth in JEP is derived from a mix of small and large pharma customers, primarily in earlier-stage development [94]

H1 2025 Performance & Strategic Review - Evotec achieved > €40 million in annualized gross savings through Priority Reset initiatives[13] - Discovery & Preclinical Development (D&PD) experienced an 11% revenue decline due to soft demand for transactional business[19] - Just - Evotec Biologics (JEB) saw a 16% year-over-year revenue growth, driven by strong non-Sandoz/non-DOD business[19] - The company is implementing a new operating model[18] and focusing investments in technology leadership[13] Technology & Asset Monetization - Evotec is expanding its E.MPD (Electronic Medical Product Documentation) database, now encompassing ~27,000 patients across various therapeutic areas[40] - A non-binding term sheet was signed for the sale of Just - Evotec Biologics EU site in Toulouse to Sandoz, including purchase price consideration, technology license fees, development revenues, milestones, and royalties[19] - The company is pursuing an IP licensing model for its proprietary continuous manufacturing platform and J CHO cell line[50] Financials & Outlook - The company is ahead of its cost-out plan[13], with FY 2025 total cost-out target of €60+ million[29] - Total liabilities and lease obligations decreased to €462 million from €478 million (end of Q1 '25)[35] - The company expects revenue between €800 million[62] for FY2025 - The company aspires to achieve revenue CAGR of 8-12% and an adjusted EBITDA margin >20% by 2028[70]

Financial Data and Key Metrics Changes - The company's full-year 2024 group revenues reached €797 million, a 2% increase compared to 2023 [15] - Adjusted EBITDA for 2024 was €22.6 million, with a strong Q4 performance contributing to a significant uplift [19][22] - Operating cash flow for Q4 landed at €74.2 million, with total liquidity increasing by €94 million to €397 million by year-end [25][24] Business Line Data and Key Metrics Changes - Shared R&D revenue declined from €673 million in 2023 to €611 million in 2024, primarily due to lower revenues from Bristol Myers Squibb [16] - Just-Evotec Biologics saw a strong revenue growth of 71%, reaching €185.6 million in 2024, driven by existing relationships and new deals [18] - R&D expenditures decreased by 26% from €68.5 million in 2023 to €50.9 million in 2024, focusing investments on relevant projects [18] Market Data and Key Metrics Changes - The global R&D spending is approximately €260 billion, with expected growth rates of 3% to 4% per year [35][36] - The biologics manufacturing market is projected to grow at 10% per year, with Evotec positioned as a leader in continuous manufacturing [33][34] - The addressable market for Evotec is anticipated to grow by 5% to 7% from 2024 to 2028, driven by increased outsourcing in drug discovery [40] Company Strategy and Development Direction - The company aims to combine scientific excellence with operational excellence to achieve sustainable profitable growth [8][9] - A strategic review has led to a focus on technology and science leadership, with an emphasis on high-value, tech-driven segments [70][86] - The Priority Reset program has successfully implemented €40 million in run rate savings, with further cost-saving measures planned for 2025 [29][51] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued softness in the Shared R&D market in 2025, with a potential tipping point for growth expected in the second half of the year [49][47] - The biologics market remains robust, with confidence in the growth of Just-Evotec Biologics [48] - The company is committed to operational excellence and expects to achieve EBITDA margins over 20% in the coming years [98] Other Important Information - The company has streamlined its asset pipeline by 30%, focusing on high-quality, high-potential assets [74] - Evotec's predictive accuracy for drug-induced liver injury exceeds 87%, positioning the company as a leader in this area [126] - The company has divested from non-core assets and reduced its equity participation exposure [76] Q&A Session Questions and Answers Question: What is the sustainable level of income from tax credits for the foreseeable future? - Management indicated that tax credits would grow in line with business growth, with no current risks identified [110] Question: What are the net effects of the €50 million growth savings? - The €50 million represents gross cost savings, with net effects considering productivity and inflation expected to balance out over the planning period [112] Question: Can you provide details on the phase composition of the drug portfolio? - Currently, there are six assets in clinical stages and six in preclinical stages, with potential for 15 assets to move into clinical stages within the next 24 months [114][115] Question: How sophisticated are the models for phasing out animal testing? - Evotec supports the FDA's initiative to replace animal testing with human microphysiological systems and AI-based approaches, positioning itself as a leader in this developing market [123][124]

Pioneering Drug Discovery FY 2024 & Strategic Review Disclaimer This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries) is being delivered on behalf of Evotec SE (the "Company", "we," "our" or "us"). This presentation is made pursuant to Section 5(d) and/or Rule 163B of the Securities Act of 1933, as amended, and is intended solely for investors that are qualified institutional buyers or certain i ...

Strategic Review and Future Positioning - The company is undergoing a strategic review targeted for completion in early Q2 2025, aiming to define a new vision and establish a clear future position [44]. Financial Position and Liquidity - As of December 31, 2024, the company had €396.8 million in cash, cash equivalents, and investments, with a €250 million senior secured revolving credit facility secured in July 2024 to strengthen liquidity [50]. - As of December 31, 2024, 62% of the company's liquidity is held in Euros, with approximately 26% of liquid assets in US dollars [51]. - The company is exposed to liquidity risks from long-term fixed-price contracts if planned cash inflows are lower than expected [50]. - The company received €46.9 million in R&D tax credits for the year ended December 31, 2024 [63]. - For the year ended December 31, 2024, the company reported €797.0 million in revenue, representing growth of 2.0% from the previous year [182]. - The company incurred a net loss of €196.1 million for 2024, an increase of €112.2 million compared to 2023 [182]. - Adjusted EBITDA for 2024 was €22.6 million, a decrease of €43.8 million from the previous year [182]. Revenue Sources and Customer Base - In 2024, 38.3% of the company's revenue came from three customers, with 109 customer alliances each generating over €1 million [46]. - As of December 31, 2024, Evotec's revenue from "fee-for-service" agreements accounted for 94% of total revenues, with milestone payments contributing only 0.6% and 0.4% in 2023 and 2024 respectively [99]. - The contribution of the top ten customers to total revenues rose to 52% in 2024, up from 47% in 2023 and 39% in 2022 [139]. - The total number of customers increased to 849 in 2024, with 292 new customers added during the year, compared to 298 in 2023 [138]. R&D and Innovation - The company aims to serve as a source of innovative drug candidates for partners, advancing multiple active drug discovery and early development projects [48]. - R&D expenses for 2024 were €50.9 million, down from €68.5 million in 2023, focusing on selected R&D projects [187]. - The company has over 140 partnered assets in its pipeline, which includes candidates for which it has rights to receive royalty or milestone payments [189]. - The company is focused on acquiring and licensing additional intellectual property assets and technologies as opportunities arise [153]. - The proprietary multi-omics data generation platform, PanOmics, is considered industry-leading in throughput, robustness, and cost efficiency [111]. - The molecular patient database for chronic kidney disease (CKD) has expanded to include data from almost 12,000 patients, constituting over 600 billion data points, making it the largest CKD molecular database globally [113]. Operational Challenges and Risks - The ongoing Ukraine-Russia conflict and tensions in the Middle East pose significant risks to global economic stability, potentially impacting supply chains and operational costs [45]. - The company faces competition from cost-conscious Contract Research Organizations (CROs) in Asia and Eastern Europe, which could affect market positioning and revenues [46]. - The company is exposed to risks related to changes in tax laws and interpretations, which could affect its tax obligations and financial performance [62]. - Quality risks in manufacturing and R&D could delay clinical trials and regulatory approvals, adversely affecting business operations [57]. - The company experienced a ransomware incident in 2023, which caused operational delays and may continue to impact revenue and costs [78][79]. Compliance and Regulatory Environment - The company is subject to the German Supply Chain Due Diligence Act, which mandates compliance with human rights and environmental standards starting in 2024 [55]. - Regulatory compliance risks include potential fines and reputational damage if the company fails to meet sustainability reporting obligations [54]. - The company is subject to extensive government regulations in the EU and the US, which require substantial time and financial resources for compliance [156]. Market Trends and Growth Projections - The global biotechnology market is projected to grow at a CAGR of 11.5%, from $1.55 trillion in 2024 to $3.21 trillion by 2030 [143]. - The small molecule discovery market is expected to grow at a CAGR of 7.97%, from $88.57 billion in 2024 to $140.31 billion by 2030 [144]. Infrastructure and Facilities - The company operates 17 sites, including five manufacturing facilities, with a focus on profitable growth leading to the exit of certain operations in 2024 [103]. - The total area of facilities owned and leased by the company at the end of 2024 was approximately 213,930 square meters, with significant locations in France, Germany, Italy, the UK, and the US [173]. - The company completed the construction of its first J.POD facility in North America in August 2021, and a second J.POD facility in Toulouse in 2024, to strengthen its position in drug discovery and development [175]. Employee and Talent Management - In 2024, approximately 7% of the global workforce was affected by a restructuring program due to significant organizational changes and challenging financial results [74]. - The company faced challenges in sourcing and hiring talent across global locations, particularly for specialized scientific and leadership roles, due to competitive labor markets and skills shortages [75][76]. Intellectual Property and Competitive Position - The company relies on trade secrets and patents for intellectual property protection, which may not be sufficient to maintain competitive advantage [65]. - Changes in patent laws and interpretations could diminish the value of the company's intellectual property rights [67]. - The company’s proprietary drug discovery programs and technology platforms are protected through a multi-layered intellectual property strategy [152]. - As of December 31, 2024, the company owned a patent portfolio that included more than 45 patent families, with filings in the United States and Europe, and several pending or granted in multiple jurisdictions [154].

[Executive Summary](index=1&type=section&id=Executive%20Summary) Evotec outlines a new strategy for sustainable growth, meeting 2024 guidance and setting targets for 2025 and 2028 [Overview of Strategic Direction and Performance](index=1&type=section&id=Overview%20of%20Strategic%20Direction%20and%20Performance) Evotec's new strategy emphasizes core strengths, operational excellence, and a 'Priority Reset' for significant cost savings - The new strategy refocuses Evotec on its core strengths in **technology and science leadership** to deliver maximum impact for customers and patients, accelerating drug discovery through cutting-edge platforms and **AI-driven innovation**[3](index=3&type=chunk) - The 'Priority Reset' initiative is on track to deliver annualized recurring gross savings of **€40 million**[4](index=4&type=chunk) 2025 Guidance and 2028 Outlook Highlights | Metric | 2025 Guidance | 2028 Outlook | | :--- | :--- | :--- | | Group Revenues | €840 – €880 million (5-10% growth) | 8-12% CAGR (2024-2028) | | Adjusted EBITDA | - | Margin > 20% | [Strategic Repositioning and Operational Excellence](index=2&type=section&id=Strategic%20Repositioning%20and%20Operational%20Excellence) Evotec is strategically repositioning to enhance operational excellence and simplify its business model, targeting significant cost savings by 2028 [Core Strategy and Business Model Simplification](index=2&type=section&id=Core%20Strategy%20and%20Business%20Model%20Simplification) Evotec simplifies its business model by focusing on two core pillars, streamlining assets, and targeting over €90 million in gross savings by 2028 - The company's strategy is built on two core pillars: **Drug Discovery & Pre-clinical Development (Shared R&D)** and **Just – Evotec Biologics**[7](index=7&type=chunk) - The business model will be simplified by focusing on high-value services, streamlining the asset portfolio by **~30%**, and exiting equity participations[7](index=7&type=chunk) - A commitment to operational excellence aims to deliver over **€50 million** in gross savings by 2028, in addition to the **€40 million** from the 'Priority Reset' program[7](index=7&type=chunk) [Financial Performance and Business Highlights](index=2&type=section&id=Financial%20Performance%20and%20Business%20Highlights) Evotec met its 2024 financial guidance, driven by strong growth in Just – Evotec Biologics, despite challenges in Shared R&D [FY 2024 Financial Results](index=2&type=section&id=FY%202024%20Financial%20Results) Evotec's 2024 group revenues grew 2% to €797.0 million, boosted by Just – Evotec Biologics, with adjusted EBITDA at €22.6 million FY 2024 Financial Performance | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Group Revenues | €797.0 million | €781.4 million | +2% | | Just – Evotec Biologics Revenues | €185.6 million | €108.4 million | +71% | | Total Shared R&D Revenues | €611.4 million | €673.0 million | -9% | | Adjusted Group EBITDA | €22.6 million | €66.4 million | -66% | - Q4 2024 revenues showed strong performance, increasing by **10%** to **€221.2 million**, marking the second-highest quarterly revenue in the company's history[7](index=7&type=chunk) - The 'Priority Reset' program is on track, with one-off costs of **€54.9 million** recognized against an initial provision of **€68.5 million**[7](index=7&type=chunk) - The net debt leverage ratio significantly improved to **1.9x** net debt / EBITDA[7](index=7&type=chunk) [Business Development and Partnerships](index=3&type=section&id=Business%20Development%20and%20Partnerships) Evotec expanded key partnerships in biologics, neuroscience, and cell therapies in 2024, strengthening its foundation for future growth - Key strategic collaborations in 2024 include: - **Sandoz**: Expansion of a technology partnership for biologics development and manufacturing - **Bristol Myers Squibb (BMS)**: Progress and extension of a multi-year collaboration in neuroscience and targeted protein degradation - **Novo Nordisk**: A new technology development partnership to support next-generation cell therapies - **Pfizer**: A new multi-year master research collaboration focused on metabolic and infectious diseases[9](index=9&type=chunk) [Financial Guidance and Outlook](index=3&type=section&id=Financial%20Guidance%20and%20Outlook) Evotec provides financial guidance for 2025, projecting accelerated revenue growth, and sets long-term targets for 2028 [Fiscal Year 2025 Guidance](index=3&type=section&id=Fiscal%20Year%202025%20Guidance) Evotec forecasts 2025 group revenues between €840-€880 million and adjusted EBITDA of €30-€50 million, driven by Biologics growth FY 2025 Guidance | Metric | Expected Range | | :--- | :--- | | Group Revenues | €840 – 880 million | | R&D Expenditures | €40 – 50 million | | Adjusted Group EBITDA | €30 – 50 million | - Revenue growth in 2025 is expected to be driven by the **Just – Evotec Biologics** segment, with **Shared R&D** revenues anticipated to be stable compared to 2024[9](index=9&type=chunk) [2028 Outlook](index=3&type=section&id=2028%20Outlook) By 2028, Evotec targets an 8-12% CAGR for group revenues and an adjusted EBITDA margin exceeding 20% 2028 Long-Term Targets | Metric | Target | | :--- | :--- | | Group Revenues CAGR (2024-2028) | 8 – 12 % | | Adjusted EBITDA Margin 2028 | > 20% | [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides details on the upcoming conference call, an overview of Evotec SE, and important forward-looking statements [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Evotec will host a conference call on April 17, 2025, to discuss 2024 results and the strategic review - A conference call to discuss 2024 results and the strategic review is scheduled for **Thursday, April 17, 2025, at 2:00 pm CEST**[10](index=10&type=chunk)[11](index=11&type=chunk) [About Evotec SE](index=4&type=section&id=About%20Evotec%20SE) Evotec SE is a global life science company focused on drug discovery and development, partnering with top pharma and biotech firms - Evotec's business model involves high-value pipeline co-creating partnerships with clients including all **Top 20 Pharma** and over **800 biotechnology companies**[16](index=16&type=chunk) - The company has established a portfolio of more than **100 proprietary and co-owned R&D projects**, from early discovery to clinical development[16](index=16&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This disclaimer highlights that forward-looking statements are subject to risks and uncertainties and are not obligations to update - The announcement includes forward-looking statements regarding expectations for revenues, Group EBITDA, and R&D expenses, which are subject to known and unknown risks and are not guaranteed to be correct[17](index=17&type=chunk)

Financial Performance & Transformation - Evotec's 9M 2024 revenues decreased by 1% to €5757 million, compared to €5801 million in 9M 2023[18] - Shared R&D revenue decreased by 12% to €4470 million in 9M 2024[18] - Just – Evotec Biologics (JEB) revenue increased by 74% to €1287 million in 9M 2024[18] - Adjusted Group EBITDA for 9M 2024 was negative €60 million[18] - Discovery sales increased by 60% as of September 30, 2024, compared to the previous year[15] - JEB has experienced significant business expansion with commercial manufacturing[16] Strategic Initiatives & Cost Optimization - Evotec is implementing a priority reset program, expecting over €40 million in annual savings[9, 32] - The company has identified a reduction potential of approximately 400 roles, which is 8% of the total headcount[32] - Footprint optimization is advancing, with one-third of the planned reduction completed[9, 39] - The company is focusing on strengthening partnerships and has expanded collaborations with BMS and Sandoz[12, 34] Liquidity & Guidance - Evotec has a solid funding profile with a streamlined financing mix and long-term maturity profile[23] - The company's liquidity position as of Q3 2024 is €3033 million[23] - Evotec confirms its 2024 guidance, projecting group revenues between €790 million and €820 million and adjusted EBITDA between €15 million and €35 million[27]

Core Insights - Kia has inaugurated the Kia Gwangmyeong EVO Plant, marking Hyundai Motor Group's first dedicated electric vehicle (EV) manufacturing facility, aimed at enhancing its EV production capabilities [1][2]. Group 1: Facility Overview - The Kia Gwangmyeong EVO Plant is located at Kia Autoland Gwangmyeong and has an annual production capacity of 150,000 units, starting with the Kia EV3 and followed by the EV4 in 2025 [2][5]. - The facility represents a transformation from a previous internal combustion engine (ICE) vehicle plant, emphasizing Kia's commitment to sustainable manufacturing and mobility goals [1][4]. Group 2: Investment and Development - The total investment in the Gwangmyeong EVO Plant amounts to KRW 401.6 billion, covering approximately 60,000 square meters [5]. - The plant has undergone a year-long transformation from its original purpose of producing small ICE vehicles, showcasing Kia's strategic shift towards next-generation vehicle production [6]. Group 3: Strategic Goals and Leadership - Kia aims to lead innovation in the EV market and fulfill its responsibilities in delivering sustainable mobility solutions, as stated by Jun Young Choi, Executive Vice President at Kia [4]. - The establishment of the plant is expected to position Gwangmyeong City as a center for the EV industry in Korea, promoting local economic development and job creation [5].

Financial Data and Key Metrics Changes - In H1 2024, group revenues increased by 2% to EUR 390.8 million compared to EUR 383.8 million in H1 2023 [7] - Total shared R&D revenues decreased by 7% to EUR 302.4 million, while revenues from Just - Evotec Biologics increased by 50% to EUR 88.5 million [12] - Adjusted EBITDA for H1 2024 was close to breakeven at minus EUR 0.5 million, impacted by a high fixed cost base and slow market demand [13][14] Business Line Data and Key Metrics Changes - Just - Evotec Biologics saw a significant revenue increase driven by a higher order book in the US and initial client projects in Toulouse [12] - Shared R&D business declined due to persistent market challenges, with a revenue drop from EUR 324.8 million in H1 2023 to EUR 302.4 million in H1 2024 [12] - The gross margin in shared R&D improved from 12.8% to 15.4% despite lower revenues due to cost optimization efforts [15] Market Data and Key Metrics Changes - The market environment remains challenging, with stagnation in early R&D spending in biotech and cautious decision-making in the pharmaceutical industry [7][8] - The sales order book in the Discovery business continues to grow, indicating a healthy level of closed sales despite revenue not following the same trend [8][19] - The company expects a broader market recovery to occur no earlier than 2025 [7][8] Company Strategy and Development Direction - The company is focusing on profitable growth and has initiated a reset of priorities aimed at delivering EUR 40 million in gross savings by 2025 [11][32] - A strategic review is underway to optimize the company's portfolio and footprint, with ongoing adjustments to capacity and operations [35][60] - The company aims to leverage its differentiated offerings to achieve faster growth once the market recovers [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging market conditions and the need for adjustments in workforce capacity to align with revenue profiles [9][31] - There is a commitment to investing in R&D while reducing expenditures to safeguard sustainable growth [13][32] - The company is optimistic about its partnerships and the potential for future growth despite current market pressures [20][21] Other Important Information - The company has identified non-core business areas, such as the gene therapy business in Orth, for separation and winding down operations [14][30] - A revolving credit facility of EUR 250 million was successfully completed to strengthen the balance sheet [18] - The company is committed to enhancing its operational capabilities and has made significant investments in technology and capacity [10][25] Q&A Session Summary Question: Weakness in shared R&D - The weakness is attributed to delays in existing customer projects and fewer new projects starting, with longer-term projects translating into revenue over the next 12 to 18 months [39][41] Question: Cost savings ramp-up - Cost savings are expected to ramp through H2 2024 and be fully realized by 2025, with around EUR 10 million activated in 2024 [39][43] Question: Contribution from business segments in 2024 guidance - The guidance reflects a delayed market recovery, with shared R&D and Just - Evotec Biologics both contributing to the revised EBITDA expectations [44][46] Question: Market trends and large pharma spending - There is a prioritization of R&D spending in clinical phases, with pressures on research spending due to economic factors and the IRA [44][48] Question: Long-term growth outlook - The company is prepared for potential prolonged market challenges and is focusing on strategic adjustments to optimize performance [50][51] Question: Capacity ramp-up in Toulouse - The company is accelerating the existing capacity ramp-up in Toulouse without immediate plans for expansion at the Redmond site [55][57]

Core Insights - Evotec (EVO) has made significant advancements in its strategic partnership with Bristol Myers Squibb (BMY), resulting in a performance-based payment of $75 million, leading to a nearly 12% increase in shares on August 13 [1][4] Partnership Developments - The partnership between Evotec and Celgene (acquired by Bristol Myers in 2019) began in 2018, focusing on drug discovery and development in molecular glue degraders for oncology. This partnership was extended in 2022 for an additional eight years to include non-oncology indications [2] - Evotec and Bristol Myers have another strategic partnership in neuroscience, which has generated multiple milestone payments totaling $70 million in 2024 alone, with payments of $25 million, $20 million, and $25 million announced in January, June, and August respectively [5] Technology and Market Position - Molecular glue degraders offer long-lasting therapeutic effects compared to conventional small molecule therapeutics, which require multiple daily doses. This technology significantly expands the range of druggable proteins [3] - Year-to-date, Evotec's stock has decreased by 71.7%, contrasting with a 4.7% decline in the industry [4] New Collaborations - Recently, Evotec entered a multi-year collaboration with Pfizer (PFE) focusing on early discovery research for metabolic and infectious diseases, although financial terms were not disclosed [6]