Analyst’s Disclosure:I/we have a beneficial long position in the shares of EVO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA. It may be structured as such, but it is not fin ...

Core Insights - The transaction involves the sale of the Just - Evotec Biologics manufacturing site in Toulouse for approximately US$ 350 million in cash, along with upfront technology license fees for Evotec's continuous manufacturing platform [1] - Evotec is eligible for additional license fees and development revenues, including success-based milestones, which could exceed US$ 300 million in the coming years [1] - The agreement covers royalties on a portfolio of up to ten biosimilars, targeting over US$ 90 billion in originator net sales, enhancing Evotec's revenue mix and profit margins [1] Financial Impact - The sale is immediately earnings accretive, improving Evotec's short, mid, and long-term revenue mix and capital efficiency [1] - Total potential payments from the transaction may exceed US$ 650 million, in addition to royalties from up to ten biosimilar molecules, six of which have an originator net sales value of US$ 90 billion [1] Transaction Details - The agreement was finalized following a non-binding term-sheet in July and a contract signing in November, with the effective date of the transaction being December 5, 2025 [1] - The buyer of the Toulouse site is Sandoz AG, which will benefit from Evotec's continuous manufacturing platform technology [1]

Core Insights - Evotec SE's partner Bayer AG has initiated a Phase 2 clinical trial for SEMA3A mAb as a potential treatment for Alport syndrome [1] - A milestone payment to Evotec is expected upon the first dosing of the first study participant, anticipated in early 2026 [1] Company Overview - Evotec SE is involved in a multi-target research collaboration with Bayer AG focused on kidney diseases [1] - The collaboration agreement includes provisions for milestone payments based on clinical trial progress [1]

Core Insights - The merger between Galaxy Gaming, Inc. and Evolution Malta Holding Limited is progressing, with Mississippi's regulatory approval secured, leaving only two jurisdictions pending approval [1][3] - The merger agreement has been extended to July 17, 2026, demonstrating both companies' commitment to completing the transaction and enhancing innovation in the gaming industry [2][4] Regulatory Approval Process - The companies expect to receive the necessary regulatory approvals in the first quarter of 2026, with Mississippi's approval already obtained in November 2025 [3] - Both companies are actively collaborating with regulators to fulfill the remaining gaming approvals by the extended deadline [3][4] Company Statements - Evolution's CEO expressed confidence in the merger's progress and emphasized the importance of Galaxy Gaming's innovative products in strengthening Evolution's market position [4] - Galaxy Gaming's CEO highlighted the merger as a significant opportunity for both companies to enhance customer experiences across various gaming channels [4] Post-Merger Strategy - After the merger, Galaxy Gaming will operate as an independent business unit within Evolution, maintaining its unique culture while benefiting from Evolution's global resources [4] - The focus will be on driving omni-channel innovation and creating additional value for partners and players worldwide [4]

Core Insights - Digital Ally, Inc. is advancing its position in the video technology market with innovative products aimed at enhancing security and efficiency [1][2] - The company is set to launch the EVO-CORE, featuring advanced functionalities such as Handsfree Voice Commands, License Plate Assistance, and Real-time Transcription, which are expected to be valuable for law enforcement [2][3] - The EVO-CORE will be integrated into Digital Ally's ecosystem, with evidence stored on the AWS powered EVO Web secure cloud platform, providing features like GPS Tracking and Remote Activation [3] Product Details - The EVO-CORE is designed as a cost-effective in-car video solution that is easy to install and maintain, connecting via USB to the Mobile Data Terminal (MDT) [7] - The product is expected to be ready for shipping in January 2026 and will be available through a subscription plan [4] Company Overview - Digital Ally specializes in developing and manufacturing video and analytics solutions for law enforcement, emergency management, and commercial applications, focusing on reliable and innovative technology [5]

Core Insights - Evotec SE has received a US$ 5 million milestone payment from Bristol Myers Squibb due to the FDA's acceptance of an Investigational New Drug application [1] - The milestone payment is part of a strategic collaboration focused on protein degradation, specifically involving a cereblon E3 ligase modulator [1] - A Phase 1 clinical trial for the drug candidate is anticipated to commence in 2026 [1]

Financial Data and Key Metrics Changes - Group revenues for the first nine months of 2025 reached EUR 535.1 million, reflecting a 7% decline compared to the previous year [9][18] - DNPD revenues declined by 12% to EUR 391.9 million, while Just - Evotec Biologics revenues grew by 11% to EUR 143.2 million [10][19] - Adjusted group EBITDA was negative EUR 16.9 million, driven by weaker DNPD revenues and fixed cost base [21] - Year-to-date free cash flow improved by 14% compared to the same period last year [22] Business Line Data and Key Metrics Changes - DNPD business faced continued softness in the early drug discovery market, leading to a 12% revenue decline [10] - Just - Evotec Biologics business showed strong growth with revenues up 11% in the first nine months [19] - Non-Sandoz and non-DOD customer base grew by over 100% in the first nine months [14] Market Data and Key Metrics Changes - Venture capital funding for biotech remains unfavorable, impacting business development activities [10][15] - The early drug discovery market is still experiencing a temporary deprioritization, with funding levels below pre-pandemic levels [15] Company Strategy and Development Direction - The company is focused on better monetizing its technology leadership and has raised its cost reduction target to EUR 60 million for 2025 [12] - A transformational deal with Sandoz was signed, expected to unlock payments exceeding $650 million over the coming years [14][39] - The strategy includes pivoting towards an asset-light, higher-margin business model, leveraging technology partnerships [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the midterm outlook despite current market challenges, with a targeted revenue of EUR 760 million to EUR 800 million for 2025 [45] - The company remains cautious about the early drug discovery market recovery, indicating that visibility into 2026 is limited [68] Other Important Information - The company anticipates up to four molecules from its partnered asset pipeline to enter phase two clinical studies in 2026 [13] - The total milestone potential of the asset pipeline is over EUR 16 billion, with significant royalties expected [34] Q&A Session Summary Question: What were Sandoz revenues in the first nine months? - Sandoz revenues accounted for over 50% of the overall year-to-date revenues [50] Question: How much of the EUR 30-50 million EBITDA guide is from the Sandoz deal? - There is a license recognition element from Sandoz included in the initial consideration, but it is not being split out at this stage [53] Question: What is the expected growth trajectory from 2025 to 2028? - The midterm outlook suggests 8-12% revenue CAGR with stronger potential for EBITDA margins than initially planned [55] Question: What is the current state of the early drug development market? - There is still uncertainty in the market, with more cautious spending and slower decision-making observed [77] Question: Are there geographic variations in market performance? - The US market showed less dynamism earlier in the year, while the European market has been more active recently [81]

Monetizing Technology Leadership Nine-month results Scientific Excellence Operational Excellence Evotec SE, 9M 2025 results call, 05 November 2025 Agenda PAGE 3 1. 9M/Q3 review 2. Monetizing Technology Leadership 3. On track to reach 2028 outlook 4. Questions & Answers 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," ...

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Core Insights - Group revenues decreased to € 535.1 million, reflecting a decline of 7.1% [1] - The Discovery & Preclinical Development segment experienced a significant drop of 12.3% due to soft demand [1] - Just - Evotec Biologics showed strong performance with an increase of 11.3%, exceeding expectations [1] - The company anticipates the advancement of up to four molecules into clinical phase II within the next six to nine months [1] - A landmark transaction with Sandoz was signed on November 4, potentially resulting in payments exceeding US$ 650 million plus royalties on a portfolio of up to 10 biosimilar molecules [1] - The company confirmed its guidance for 2025 and outlook for 2028 [1] Financial Performance - Group revenues reported at € 535.1 million, down 7.1% [1] - Discovery & Preclinical Development segment revenue declined by 12.3% [1] - Just - Evotec Biologics segment revenue increased by 11.3% [1] Strategic Developments - The market for early drug discovery services remains soft, but strategic partnerships are progressing well [1] - Strong advancements in the partnered asset pipeline are noted [1] - The company is on track with its systematic execution of strategy [1]