PhD | Director Therapeutic Innovation and BaseLaunch
Tel. +41 61 295 50 17stephan. emmerth@baselarea. swiss
The ingredients manufacturer Evolva is planning a capital increase in the amount of 80 million Swiss francs. Evolva aims to break even in four to six years by focusing on three key products.
The capital increase will be proposed at an Extraordinary General Meeting on 26 October 2017, according to an Evolva statement. In a first step, the Swiss asset manager Pictet Asset Management and the British investment firm Cologny Advisors LLP will subscribe to shares in a private placement. Evolva then plans to carry out a discounted rights offering. The new shares will be traded as of 10 November.
In addition, Evolva has identified three approaches to sharpen its strategic focus. First, it will focus in the near term on three key products – stevia, resveratrol ad nootkatone – each of which has large potential in lucrative market segments.
Second, Evolva will “ramp product sales and gradually reduce annual net cash burn” in an effort to break even in four to six years. This will involve direct sales and business-to-business partnering with market leaders.
Third, the company will enter into partnerships on new or existing products, but only “if this complements our core strategy”.
In the first half of 2017, Evolva generated 0.9 million Swiss francs in product revenues, and it expects full-year product revenues to reach between 2 million francs to 2.5 million francs. To achieve this, the company has adjusted its sales strategy and will reduce R&D revenues in the second half of the year. The proceeds of the approximately 80 million franc capital increase will be used to continue investing in R&D as well as in commercialization of products.
Evolva anticipates total revenue generation of around 40 million francs to 60 million francs by 2021 from nootkatone and resveratrol. This September, it received a contract from the U.S. government to develop nootkatone into a new form of protection against insects, which can also be used against mosquito-borne diseases like Zika. Reveratrol can be used to promote healthy skin ageing, and its partner company Cargill plans to launch a sweetener based on stevia.