- Total deal value of EUR 250 m, including more than EUR 40 m upfront cash payment
- Long-term discovery service collaboration with Sanofi
- Major pipeline-building initiative with focus on oncology
- Evotec acquires Sanofi's scientific operations and related employees at Toulouse site
- Creation of Evotec's European compound management centre
- Sanofi and Evotec offering joint small molecule libraries to biotech and other Pharma players for hit discovery
- Establishment of French academic bridge
Hamburg, Germany - 20 March 2015: Evotec AG (Frankfurt Stock Exchange: EVT, TecDAX, ISIN: DE0005664809) today announced that a definitive agreement for a major multi-component strategic alliance over the next five years has been signed with Sanofi. The transaction is expected to close on 31 March 2015. This successfully concludes the exclusive negotiations for a major multi-component strategic collaboration which the two companies entered into on 02 December 2014.
The collaboration will result in a minimum guaranteed commitment from Sanofi to Evotec of EUR 250 m, including more than EUR 40 m upfront cash payment. The five-year agreement includes initiatives with both of Evotec's two business segments (EVT Execute and EVT Innovate).
Capacity and capability expansion
Following its strategic growth plans, Evotec will expand its industry-leading capabilities in drug discovery by integrating a state-of-the-art facility of approx. 20,000 m2 and more than 200 highly qualified and experienced employees in Toulouse, France. Evotec will integrate the Toulouse capacities into its global drug discovery infrastructure and offering. The expanded capabilities will serve to support collaborative research in drug discovery from screening to identification of pre-clinical candidates with Evotec's Pharma, biotech, venture capital and academic partners.
Strategic outsourcing agreement
Evotec will provide a broad range of long-term drug discovery services to Sanofi. This agreement is centred on the core small-molecule discovery platforms in Toulouse for the period of the contract over the next five years. In addition, Evotec will assume management of Sanofi's global screening compound library.
Offering of joint small-molecule libraries
In a first-in class, ground-breaking 'open innovation initiative', both companies will combine their libraries and offer them for screening to Evotec's business partners. This creates one of the largest and most valuable sources of starting points for drug discovery with approx. 1,700,000 compounds available to screen.
Pipeline-building initiative in oncology
The definitive agreement defines the conditions under which Evotec and Sanofi intend to jointly progress a portfolio of primarily oncology related projects, including five advanced, pre-clinical projects and further discovery-stage assets, to IND ("Investigational New Drug") status or other value inflection points before partnering them.
French academic bridge
Sanofi and Evotec aim at further energising and accelerating the translation of excellent science from academic institutions to Pharma. In a joint effort, Evotec will scout and incubate projects generated in France into the pipeline of Evotec's Cure X/ Target X strategy.
Dr Werner Lanthaler, Chief Executive Officer of Evotec, commented: "We are very excited to welcome our new colleagues to Evotec. We would also like to welcome Sanofi as a new strategic customer and key alliance partner. This transaction supports our long-term strategic growth plans for our EVT Execute and EVT Innovate segments and brings significant value to Evotec's shareholders without the need for dilutive financing."
"Sanofi is pleased to welcome Evotec as a new strategic partner in France. We highly value this collaboration, which will reinforce Toulouse Biopark as a major biomedical research platform in Europe and create a field of opportunities for our employees, while contributing to the vitality of the local ecosystem", said Dr Elias Zerhouni, President Global R&D for Sanofi.
Given the complexity of the transaction and the nature of some of the consideration, Evotec's financial guidance will only be updated after careful consideration with the auditors. An update of how the transaction will impact the financial projections of Evotec will be given at Evotec's year-end presentation for 2014 on 24 March 2015.