German contract researcher Evotec posted 9% growth in the first half of 2014, executing on its plan to serve as both CRO and proprietary developer in a hybrid approach to R&D.
The company's revenue came in at about $53.6 million on the half, a leap over last year's $49.2 million. Evotec credits its growth to a slew of payments tied to alliances, licenses and milestones. EVT Execute, the company's CRO arm, brought in $53.2 million, while EVT Innovate, which outlicenses internal candidates, picked up $11.5 million. However, about $10.7 million in intersegment eliminations--in which one business sold services to the other--brought down the revenue total.
For the full year, Evotec expects high single-digit percentage growth in revenue, using some recent deals and acquisitions to flesh out sales as it expands in both its contracting and in-house operations.
Earlier this year, Evotec teamed up with Debiopharm and Convergence Pharmaceuticals in separate deals to handle early-stage drug development work, dovetailing with the company's core business of pursuing risk-splitting projects with drug developing sponsors in exchange for CRO fees and a cut of future profits. That model has attracted collaborators including Bayer, Boehringer Ingelheim, Johnson & Johnson ($JNJ) and Roche ($RHHBY).
And the Hamburg-headquartered company is working to expand EVT Innovate, in March buying up a biopharma asset management company to bring in a pipeline of its own and get to work on some unpartnered assets.
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