IPO-pedia | German biotech Evotec seeks over $9 bln valuation

German biotech firm Evotec plans to list on the Nasdaq under the symbol "EVO" on November 4th.

The company would look to raise up to $575.5 million in the IPO by offering 22 million American depositary shares (ADSs) at $26.16 each, according to its filing. Each ADS represents one-half of an ordinary share.

According to Reuters, Evotec SE would seek a valuation of about $9.2 billion in its initial public offering in the United States. BofA Securities and Morgan Stanley are the lead underwriters for the offering.

As of October 31st, The company has a market capitalization of $8.2 billion on the Frankfurt Stock Exchange, where its shares are already listed.

Founded in 1993, Hamburg-headquartered Evotec is an industry-leading drug discovery and development partner for the pharmaceutical and biotechnology industry.

It offers a suite of technologies that enable faster and cheaper drug discoveries by pharmaceutical companies.

The company last year received a grant from the Bill & Melinda Gates Foundation to help identify and develop potential monoclonal antibody drugs for the prevention of severe COVID-19.

Evotec's work to date has resulted in 11 disclosed pipeline assets in clinical development, and over 100 pipeline assets in the discovery and preclinical phase.

In the meanwhile, it has developed a broad multi-disciplinary network of collaborations with over 800 partnerships across the pharmaceutical and biotechnology industry and academia.

Evotec generate revenue through three core collaboration routes:

1)“Fee-for-service”: byproviding stand-alone or fully integrated drug discovery and development solutions to partners on a fee-for-service and FTE-rate basis;

2)EVOroyalty: by receiving milestones and royalties on assets;

3)EVOequity: through equity ownership in emerging, highly innovative companies and translational academic institutional projects.

As of June 30, 2021, it had 24 investments with 90 active projects in our EVOequity pipeline.

Revenues from contracts with customers increased by 17.5%, from €231.0 million for the six months ended June 30, 2020 to €271.3 million in the six months ended June 30, 2021.

The increase is mainly due to a positive performance across all business lines as well as the higher contribution of Just – Evotec Biologics.

Net income increased by €105.5 million from €7.26 million in the six months ended June 30, 2020 to €112.71 million in the six months ended June 30, 2021. The increase is mainly resulted from the fair value adjustment of Evotec’s participation in Exscientia Ltd. in the amount of €116.1 million.