The availability of large, diverse datasets (“big data”) in the past 5 - 10 years, coupled with the exponential growth in computing power, increasingly sophisticated algorithms and major advances in experimental techniques for structural biology have firmly propelled artificial intelligence (“AI”) into drug discovery ("DD"). A variety of machine learning (“ML”) tools are now available across all stages of DD and development. This has led to the emergence of many AI-driven tech players looking to capitalise on biopharma’s appetite to incorporate AI into the R&D process, with many partnerships being forged. Through its collaboration with Exscientia, Evotec has been using advanced ML tools to gain operational efficiencies in drug design, reduce the overall time it takes to take a drug candidate from discovery to first in human studies, and increase the chance of success. The first drug candidate may be ready to enter the clinic by YE2019E, when it can potentially be partnered with a biopharma company. Evotec has also recently entered a collaboration with Immuneering to use AI for ligand identification in the field of hereditary metabolic diseases. We reiterate both our OUTPERFORM recommendation and €25 target price.