Evotec Strengthens Discovery Alliance Business through Acquisition of DeveloGen

16-Jul-2010 - Germany

Evotec AG announced the signing of a definitive agreement to acquire DeveloGen, a biopharmaceutical company engaged in the discovery of novel therapeutic approaches for the treatment of metabolic and endocrine disorders.

The transaction catalyses Evotec's strategy to become the world leading drug discovery partner for pharma and biotechnology companies. It adds two complementary alliances - one with Boehringer Ingelheim and one with Andromeda (Teva) - to Evotec's portfolio of core assets, a high-end drug discovery platform and expertise as well as highly innovative disease biology know-how in metabolic diseases.

The purchase price consists of up to € 14m in Evotec shares from authorised capital and an earn-out component in cash. Of the € 14m in shares 4m shares (valued at € 2 each) are issued at closing which is expected in August 2010. Up to 3m shares are held in escrow and are conditional on certain company events and representations. All shares issued are subject to a six months lock-up. In addition, DeveloGen shareholders are eligible for success-based cash payments (earn-out) based on future revenues generated from the acquired programmes.

Despite approximately € 2m cash required for certain obligations especially working capital needs at DeveloGen Evotec confirms all prior financial objectives. For the current fiscal year, the Company expects to grow revenues by more than 15%, to spend approximately € 10 m in R&D and to end the year 2010 with a liquidity of more than € 64 m.

Evotec appoints Cord Dohrmann, Ph.D., as Chief Scientific Officer and member of the Management Board starting September 1st 2010. Cord Dohrmann currently is the CEO of DeveloGen.

https://www.bionity.com/en/news/120125/evotec-strengthens-discovery-alliance-business-through-acquisition-of-develogen.html