Evotec Accelerates Growth Strategy of its Discovery Alliance Business with Acquisition of Indian RSIPL


  • Evotec acquires 70% controlling majority stake of Research Support International Private Limited ('RSIPL'), India, for EUR 2.8 million in cash
  • Expansion of capacity accelerates Evotec's strategy to become the global, premier provider of drug discovery and early development alliances
  • Evotec maintains liquidity guidance of more than EUR 65 million by year-end 2009


Hamburg, Germany - Evotec AG (Frankfurt Stock Exchange: EVT; NASDAQ: EVTC) and DIL Limited, India, announced today the signing of a definitive agreement to acquire a 70% controlling majority stake of the drug discovery service company RSIPL for EUR 2.8 million in cash, a portion of which includes a potential earn-out.

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 a cost-effective location 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.

"It is important to strengthen the strategic position of Evotec's Discovery Alliance Business with the best technology offering and the most efficient global reach and cost strategy. This is a very important step in our strategy "Evotec 2012 - Action Plan to Focus and Grow", said Werner Lanthaler, CEO of Evotec.

"With this acquisition we reinforce our strategic commitment to deliver the highest value, know-how driven services and build the strongest innovation alliances with our customers. Evotec continues to accelerate its strong track record in Innovation and Process Excellence with the best scientists in the industry," commented Mario Polywka, COO of Evotec.

"We are happy to undertake this strategic partnership with Evotec in the development of RSIPL and believe in the growth strategy of the Discovery Alliance Business of Evotec. The partnership with Evotec would lend substantially to the growth of RSIPL and we look forward to a successful association with them", commented Krishna Datla, Managing Director of DIL.

RSIPL, located in Thane near Mumbai, was founded in 2004 and currently employs approximately 160 employees. The company is a 100% subsidiary of DIL, a publicly listed company on the Bombay Stock Exchange. Following the transaction, RSIPL will be integrated, as Evotec India, into the value chain of Evotec's operations in Hamburg (Germany) and Abingdon (UK). The deal is expected to close latest in early September, 2009. Evotec has a call option to purchase the remaining 30% from DIL in the future in the event of a change-of-control.

Despite this and the recent acquisition of the zebrafish technology platform, Evotec maintains it guidance to have more than EUR 65 million in liquid funds available by the end of 2009.


Incorporated in 2004, Research Support International Private Limited ('RSIPL') is a 100% subsidiary of DIL Ltd (formerly Duphar-Interfran Ltd.) 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's 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 a organic synthesis services to pharmaceutical and biotech customers worldwide.

About DIL

Founded in 1951, DIL has built successful partnerships with global players in the Life Sciences Industry.
Apart from RSIPL, DIL's ventures in the Pharmaceutical Industry include commercial scale manufacturing and marketing of bulk drugs, intermediates, formulations & enzymes. DIL also engages in proprietary Research & Development of its own molecules, formulation, enzyme and enzyme application.

Forward-looking statements

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.

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