- Adds Key Metabolic Disease Know-How and Complementary Drug Discovery Expertise
- Adds Two High-Value Alliances With Boehringer Ingelheim and Andromeda (Teva)
- Purchase Price Includes Up To €14m In Shares, Thereof Approx. €6m (In Shares) Conditional, Plus a Future Earn-Out In Cash
- Despite Cash Requirements and Transaction Costs of Approx. €2m Liquidity Guidance of More Than
€64m By Year-End Confirmed - Evotec Appoints Dr Cord Dohrmann as Chief Scientific Officer and Member of Evotec's Management Board
Evotec AG (Frankfurt:EVT) (TecDAX) today announced the signing of a definitive agreement to acquire DeveloGen, a biopharmaceutical company engaged in the discovery of novel therapeutic approaches for the treatment of metabolic and endocrine disorders, for up to €14m in shares plus performance-related deferred payments (earn-out).
Broadening Evotec's portfolio of innovation alliances
The transaction significantly catalyses Evotec's strategy to become the world leading drug discovery and early development partner for pharma and biotechnology companies. It immediately adds two complementary alliances to Evotec's portfolio of core assets:
- An integrated discovery alliance with Boehringer Ingelheim on small molecules to treat insulin resistance (type 2 diabetes). In this performance-based alliance Evotec will receive ongoing research funding and may earn potential milestone payments of up to € 237m for the lead compound as well as royalty payments.
- A development partnership with Andromeda (Teva) on DiaPep277, a synthetic peptide immunomodulator to treat type 1 diabetes in pivotal Phase III clinical development. Evotec may receive royalties upon commercialisation of DiaPep277 products and significant milestones upon the successful completion of key development and regulatory milestones.
Sharpening Evotec's leadership role in drug discovery
The acquisition especially augments and complements Evotec's high-end drug discovery platform and capability with DeveloGen's target discovery, validation and in vivo/in vitro pharmacology expertise and adds core disease biology know-how in metabolic diseases. These skills further enhance Evotec's ability to deliver high quality, innovative solutions to its partners on a global scale.
DeveloGen's growth factor, targeting beta cell regeneration (type 1 and type 2 diabetes), which is in lead optimisation and has been funded by the Juvenile Diabetes Research Foundation, forms also part of the transaction. The most advanced lead, DG770, triggers beta cell proliferation and neogenesis and has demonstrated efficacy and safety in various preclinical models.
"Through the acquisition of core DeveloGen assets and its disease biology know-how in metabolic disorders, Evotec broadens its portfolio of high-value partnerships and adds substantial potential for milestone payments over the next years," said Dr Werner Lanthaler, Chief Executive Officer of Evotec AG. "Importantly, we are acquiring this value potential for our shareholders without assuming many of the risks associated with such transactions. Of the initial purchase price almost half will only be released following the achievement of defined company goals and an earn-out component secures that the additional consideration will only be paid if the programmes acquired generate revenues."
Transaction structure reflects value potential