We believe Evotec’s business is well positioned to deliver continued growth, benefiting from the ongoing trend towards outsourcing early-stage drug discovery. A key driver for future growth is via strategic alliances and Evotec has realised a number of both new and expanded agreements this year. We have raised our financial forecasts and, consequently, our valuation to €577m owing to the strong performance year to date, coupled with these collaborations. In 2016 we expect Evotec to provide an update on the future strategy.
Evotec’s 9M15 revenues grew 50% to €88.2m, driven by a strong performance in EVT Execute (+52%, the preclinical “services” business), which was boosted by Sanofi revenues. EVT Innovate (the collaborative academic/pharma drug discovery business) grew 34%. The strong performance recently led Evotec to upgrade 2015 revenue guidance to growth >45% (excluding milestones and upfronts). With the performance to date, coupled with a generally strong Q4, we believe this can be surpassed with nearly 60% growth possible, even if Q4 is flat versus Q3.
Evotec has successfully executed on a number of new and broadened collaborations. The most significant was the Sanofi transaction at the start of this year, providing additional capacity and enhancing Evotec’s capabilities. Other agreements include in tissue fibrosis with Pfizer, diabetes and immuno-oncology with Sanofi, Alzheimer's disease and Huntington's, broadening and diversifying Evotec's pipeline of opportunities. Evotec currently has a pipeline of >70 product opportunities, including seven in clinical development.
We continue to believe that in the near to mid-term the key growth drivers for Evotec are EVT Innovate, supported by EVT Execute. During 2016, we expect Evotec to provide an update on the future strategy for these key divisions.
Our Evotec valuation has been increased to €577m (from €486m) or €4.36/share, which reflects upgrades to our financial forecasts driving the valuation of the base business. We have also updated for FX, last reported net cash and rolled the valuation forward in time.