Roth ups Evotec price target to €16

Roth Capital Partners raised its price target for “buy-rated" Evotec AG (FSE:EVT) to €16 from €5.50, reflecting a review of the company’s partnered pipeline assets. The stock was recently quoted at €11.66. 

Analyst Michael Higgins writes that Evotec’s well-earned reputation for delivering industry-leading drug discovery services and its strategic focus, initiated in 2010, to secure risk-adjusted, value-based partnership agreements with academics, companies and patient-centered groups, is producing identifiable assets. 

“We believe the Celgene neurodegenerative diseases partnership validates Evotec’s induced pluripotent stem cell (iPSC) platform, and will attract additional partners,” he added.

Mr. Higgins said examples of Evotec’s partnerships and opportunities, which are worth about $3.5-billion, plus about 10% royalties, include Celgene, to develop treatments for neurodegenerative diseases, including ALS, Alzheimer’s, Huntington’s, and Parkinson’s from its iPSC platform; Sanofi, to develop functional beta-cells to cure diabetes from its iPSC platform; and Bayer, in separate partnerships, to develop treatments for chronic kidney disease and endometriosis.