- Adds key know-how and infectious disease therapeutic area capabilities
- Strengthens EVT Execute and EVT Innovate business by establishing an anti-infective platform
- Initial purchase price of £ 1.9 m in cash plus a deferred payment dependent on business performance
Manchester, UK and Hamburg, Germany - 28 May 2014: Evotec AG (Frankfurt Stock Exchange: EVT, TecDAX, ISIN: DE0005664809) today announced the acquisition of all shares in Euprotec Ltd, a UK-based specialist contract research organisation. Euprotec is a recognised leader in anti-infective drug discovery services. With a comprehensive portfolio of assays and disease models, underpinned by internationally recognised expertise, the company supports each stage of anti-infective drug discovery and development programmes from discovery through to late stage pre-clinical investigation and clinical proof-of-concept studies.
Strengthening Evotec's position as the quality leader in drug discovery services and creating a new disease franchise to accelerate the Cure X and Target X initiatives
The acquisition of Euprotec confirms Evotec's leading position as a fully integrated drug discovery and early development partner for Pharma and biotechnology companies. Integration of Euprotec's unique capabilities augments and complements Evotec's high-end drug discovery platform with anti-infective screening, early PKPD (Pharmacokinetic/Pharmacodynamic) profiling, an extensive range of disease and efficacy models for characterisation of anti-bacterials, anti-fungals and anti-virals, StrainBank, a unique collection of clinical isolates, and adds core disease biology know-how in infection. These skills further enhance Evotec's ability to deliver high-quality innovative solutions to its partners on a global scale.
"Through the acquisition of Euprotec's capabilities and its disease biology know-how in infection, Evotec expands its technological portfolio to offer a complete infrastructure and discovery solutions in the field of infectious diseases", said Dr Werner Lanthaler,Chief Executive Officer of Evotec AG.
"Importantly, we acquire highly innovative approaches, within our core competence along the discovery value chain, to open new therapeutic routes in the major market of infectious diseases. There is a pressing need for new agents to treat key infections due to emerging resistance to current therapies. Currently, Evotec has two innovative programmes, TargetPicV and TargetPGB, to develop drugs to treat infectious diseases and with this acquisition we can expand this portfolio."
Dr Lloyd Payne, CEO and co-founder of Euprotec, added: "We are thrilled to be joining forces with Evotec and combining its leading-edge drug discovery platform with Euprotec's comprehensive infectious disease biology capabilities and expertise. Our vision of delivering integrated, world-class anti-infective discovery solutions to our clients will now be realised. We look forward to an exciting new phase of growth with Evotec and, most importantly, working with our customers to accelerate the development of new breakthrough anti-infective vaccines and therapies."
Transaction structure reflects value potential
The purchase price consists of a cash consideration of £ 1.9 m and a deferred payment component of £ 1.25 m in cash. The deferred payment will be due following through two years after the acquisition and depends upon the business performance and achieving certain revenue targets. The deal is expected to close in H1 2014.
Despite cash requirements for the transaction in 2014, Evotec confirms all prior financial objectives. For the current fiscal year, the Company expects high single-digit percentage growth in revenue excluding milestones, upfronts and licences, to spend approximately EUR 10 m to EUR 14 m in R&D and to end the year 2014 with a liquidity of more than EUR 90 m.