Evotec completes acquisition of Just Biotherapeutics
Evotec SE announced that the strategic transaction to acquire Just Biotherapeutics (“Just.Bio”), signed on 20 May 2019, has been completed. The acquisition accelerates Evotec’s long-term strategy to be the industry partner of choice for external end-to-end innovation, strengthening Evotec’s multimodality approach to R&D.
Evotec acquired Just.Bio to integrate their cutting-edge machine-learning technologies and agile, flexible methods for the design, development, and manufacturing of biologics into Evotec’s drug discovery offerings. Just.Bio’s approx. 95 employees and its state-of-the-art biologic development and manufacturing site located in Seattle, WA, USA, will expand Evotec’s US footprint. Just.Bio’s capabilities and expertise comprise an in-house, integrated technology platform, J.DESIGN, enabling smart and efficient biologics’ drug development from design and lead optimisation to manufacturing.
Transaction structure summary
In less than four years, Just.Bio has been able to build their J.DESIGN platform and attract a diversified customer portfolio resulting in strong financial growth with reported 2018 revenues of approx. $ 20 m. Evotec will pay a total consideration of up to $ 90 m including potential earn outs in the next three years. The initial consideration upon closing is $ 60 m subject to customary net debt and working capital adjustments. The acquisition of 100% of the issued and outstanding equity interests of the company will be paid in cash to a syndicate of institutional investors of ARCH Venture Partners, Merck & Co., Lilly Asia Ventures and the Bill & Melinda Gates Foundation. The acquisition will add to Evotec’s revenue growth and will strengthen Evotec’s overall strategic vision. A guidance update will be given upon reporting of half-year 2019 figures. Just.Bio will be financially fully consolidated under the Evotec Group.
Dr Werner Lanthaler, Chief Executive Officer of Evotec, said: “We are pleased to have been able to swiftly close the acquisition of Just.Bio. With the integration of Just.Bio’s expertise in biologics and their outstanding human talent, we will accelerate our ability to build better molecules with cutting-edge technologies for our customers as well as our own pipeline. We warmly welcome the Just.Bio employees to the Evotec Group.”
Dr James Thomas, EVP, Global Head, Biotherapeutics, President US Operations of Evotec, commented: “Starting with a small group of creative and passionate employees, we've made remarkably fast progress building a state-of-the-art technology platform for expanding global access to biologics. Joining forces with Evotec will build upon these accomplishments and accelerate expansion of our advanced capabilities in Seattle, a growing hub of technology innovation. We are thrilled to be part of the excellent Evotec global team.”
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