Hamburg, Germany, 31 August 2009: Evotec AG announced today that the acquisition of the controlling majority stake of Research Support International Private Limited ("RSIPL") has been successfully completed and that RSIPL is a 70%, majority owned subsidiary of Evotec as of August 31, 2009.
The purchase price for the 70% controlling majority stake payable, before adjustments, to DIL Limited, India, is EUR 2.8 million in cash, a portion of which includes a potential earn-out. Evotec has a call option to purchase the remaining 30% from DIL in the future in the event of a change of control. RSIPL, located in Thane near Mumbai, was founded in 2004 and currently employs approximately 160 employees. The company is providing Drug Discovery & Development services. RSIPL is a vibrant organization committed to provide a strong & reliable fundamental research platform to enable its customers to accelerate their drug discovery programs efficiently and cost effectively. RSIPL uses its world class infrastructure and facilities to synthesis virtually all types of organic compounds from milligram to kilogram scale. RSIPL was conferred the "Partner of Choice in Contract Research - Chemistry Based Services" award for the year 2007 by Frost & Sullivan in recognition of its experience in offering organic synthesis services to pharmaceutical and biotech customers worldwide.
Following the transaction, RSIPL will be integrated, into the value chain of Evotec's operations in Hamburg (Germany), Abingdon (UK) and Singapore. The members of the Management Board of Evotec AG, Dr Werner Lanthaler, Dr Mario Polywka and Dr Klaus Maleck, have been appointed as members of the Board of Directors of Evotec India together with two representatives from DIL.
This transaction represents an important capacity expansion for Evotec. It adds a complementary drug discovery operation and capability in the field of science-driven chemistry work in India to Evotec's already world-leading discovery platform and efficiently increases its ability to deliver high quality, know-how driven drug discovery and development services to its partners on a global scale.
Information set forth in this press release contains forward-looking statements, which involve a number of risks and uncertainties. Such forward-looking statements include, but are not limited to, statements about our expectations and assumptions concerning regulatory, clinical and business strategies, the progress of our clinical development programs and timing of the results of our clinical trials, strategic collaborations and management's plans, objectives and strategies. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: risks that the Company may be unable to reduce its cash burn through recent restructuring and cost containment measures and may not recognize the results of such measures within the expected timeframe; risks that product candidates may fail in the clinic or may not be successfully marketed or manufactured; the risk that we will not achieve the anticipated benefits of our collaborations, partnerships and acquisitions in the timeframes expected, or at all; risks relating to our ability to advance the development of product candidates currently in the pipeline or in clinical trials; our inability to further identify, develop and achieve commercial success for new products and technologies; the risk that competing products may be more successful; our inability to interest potential partners in our technologies and products; our inability to achieve commercial success for our products and technologies; our inability to protect our intellectual property and the cost of enforcing or defending our intellectual property rights; our failure to comply with regulations relating to our products and product candidates, including FDA requirements; the risk that the FDA may interpret the results of our studies differently than we have; the risk that clinical trials may not result in marketable products; the risk that we may be unable to successfully secure regulatory approval of and market our drug candidates; and risks of new, changing and competitive technologies and regulations in the U.S. and internationally.
The list of risks above is not exhaustive. Our most recent Annual Report on Form 20-F, filed with the Securities and Exchange Commission, and other documents filed with, or furnished to the Securities and Exchange Commission, contain additional factors that could impact our businesses and financial performance. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.