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Evotec’s annual net income more than doubles

A strong year for the pharmaceutical company.

The German pharmaceutical company Evotec AG has reported a net income of €6.65m for the year ended 31 December 2011, compared to €2.99m in 2010.

Revenues increased by 45 per cent to €80.13m (2010: €55.36m), driven by the company’s strong performance in its drug discovery alliances, as well as a €6.9m upfront payment from Roche as part of a development partnership in Alzheimer’s disease with EVT302.

Revenues included significant payments and licenses received from Boehringer Ingelheim, Ono Pharmaceutical and Shionogi in the amount of €12.4m (2010: €10.9m).

Research and development expenses came to €8.44m – an increase of 38 per cent, compared to €6.17m the previous year. Diluted earnings per share were €0.06 in 2011 (they were €0.03 in 2010). The company maintained a strong liquidity position of €62m.

Evotec said it will continue to minimise any significant clinical risk and run development programmes only in partnerships where a pharmaceutical company is funding the later-stage clinical trials.

During 2011, it invested in expanding and upgrading its capabilities in screening, protein production, structural biology and chemical proteomics.

This year, Evotec expects group revenues to reach €88 to 90m, with R&D expenses remaining broadly in line with 2011 levels at approximately €10m.

As of 31 December 2011, the company had assets of €218.21m.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.