Germany’s hybrid CRO-biotech Evotec has had a better few months than expected as it announces stronger profits for 2016 ahead of its half-year results on Aug. 10.
In a brief update, Evotec said it is increasing its financial guidance for the current year and now expects adjusted Group EBITDA (before changes) to more than double.
The company said this was “mainly as a result of an increased margin contribution and a positive outlook for the remainder of the year.” It added that all other elements in its financial guidance as of May 2016 are still the same.
Evotec combines the services of a CRO alongside the drug development capabilities of a biotech. It’s had a good year, spinning off its first company, the early-stage firm Topas Therapeutics GmbH, back in March and earlier this month teaming up with a U.K. antibiotics group to try to find new ways of stopping bacterial resistance to aging drugs.
The company raised its expectations a number of times last year as full-year revenue shot up by nearly 50% when compared with 2014.
Evotec also boasts deals with Big Pharma players including Sanofi ($SNY), Roche ($RHHBY), Johnson & Johnson ($JNJ) and, most recently, Pfizer ($PFE).
The company has also entered into R&D deals with research foundations and academic institutions, lending its development expertise and compound library out in exchange for service fees.
- check out the release