Evotec SE (NASDAQ:EVO) stock fell 0.15% (As on Apr 13, 11:13:54 AM UTC-4, Source: Google Finance) after the company in the FY21 has reported the 23% increase on the revenue line, substantially pushed by the positive development of the base business and by the realization of multiple milestones, in particular in the second half of 2021. The gross margin amounted to 24.5%, slightly lower than last year’s 25%. And this is mainly due to the often mentioned end of the Sanofi subsidy for the site in Toulouse after Q1 2020 and adverse FX effects in 2021. The planned increase in unpartnered R&D expenses by 25%, namely €46 million versus €58 million leads to a 13% growth in overall R&D expenses. This development is especially driven by further enhancing the multiple platforms and continued acceleration of the co-owned pipeline. The increase of 37% in SG&A expenses versus last year is mainly caused by increasing headcount and cost for our secondary NASDAQ U.S. listing Werner. The other operating income and expense stands slightly above last year’s level and contains three main components: R&D tax credits and the recharges for ID Lyon as the main positive building blocks. The net income amounted to €215.5 million and benefits substantially from a very positive one-off effect in the non-operating income resulting from a revaluation of the Exscientia EVOequity engagement due to the successful IPO in September 2021.

Moreover, the company got exceptionally strong milestone revenue contributions of €49.5 million in 2021, mainly resulting from the long-standing BMS-Celgene collaborations and the new Takeda collaboration. The base business grew completely organically by 18% overall, and this despite negative portfolio and unfavorable FX effects. Therefore, the base revenues adjusted for these 2 effects year-on-year even grew 23%. Looking at the year-on-year revenue development, the increase is mainly driven by the very significant 27% organic growth of the business, reflected in €135 million step-up versus the last year. Year-to-date, Execute revenues, including intersegment revenues, grew by 20%, coming from €510 million in 12 months 2020. This is further driven by an increasing demand in the integrated offering, or EVOiR&D and a strong demand for our base business. 12-month 2021 Innovate revenues amounted to €147 million, which is an excellent 38% above last year due to continuous high demand for precision medicine reflected by expanding existing as well as several new partnerships and also due to the realization of substantial milestones part, in particular, in Q3 and Q4.