Evotec acquires compound management business from Galapagos
Synergies with Evotec's drug discovery alliance business expected
Evotec AG and Galapagos NV announced that Evotec has acquired Compound Focus, Inc., the compound management business of BioFocus, a Galapagos Company.
This acquisition allows Evotec to augment its early drug discovery offering substantially, provides critical mass to its existing compound management offering, and adds profitable revenues. Compound Focus, Inc. is based in South San Francisco, US and is the world leader in small molecule compound management services. The company's technologies are focused on automated storage and custom design solutions for small molecule drugs. The current key customer base includes US federal institutes and pharma companies such as Elan, Lundbeck, Sepracor or Procter & Gamble. In 2010, Compound Focus had revenues of €7.8M with an operating profit of €2.6 m.
Transaction structure reflects value potential
For the acquisition of all shares in Compound Focus Inc. Evotec will pay Galapagos an immediate cash upfront of €10.25 m and an additional €2.25 m in potential earn out payments upon performance of the business in 2012/2013 depending on revenues and certain corporate milestones.
Following this transaction, Evotec changes its revenue guidance for 2011 from €64-66 m to €68-70 m, and Galapagos changes its revenue guidance for 2011 from €150 m to €146 m.
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