HAMBURG, Germany, Sept. 8, 2014 (GLOBE NEWSWIRE) -- Evotec AG (Frankfurt:EVC) (ISIN: DE 000 566480 9) (WKN 566480) was informed that US company Hyperion Therapeutics, Inc. ("Hyperion") is terminating the development of DiaPep277® for newly diagnosed Type 1 diabetes.
In a press release published by Hyperion on 08 September 2014 at market opening in the US, the company states that it has uncovered evidence that certain employees of Andromeda Biotech, Ltd. ("Andromeda"), which Hyperion acquired in June 2014, engaged in serious misconduct, involved with the trial data of DiaPep277®. Hyperion announced that it will complete the DIA-AID 2 Phase 3 trial, but will terminate further development in DiaPep277®.
DiaPep277® is one of Evotec's advanced pipeline projects, where Evotec is entitled to royalties and milestones. Given the situation of the programme Evotec does no longer expect this project to hit the market. Therefore, the company expects to record a non-cash impairment charge of € 8.7 m.
In addition, Evotec still has an open receivable against Andromeda/Hyperion, which amounts to € 3.4 m, the payment of which is required for Evotec to meet its profitability in 2014.
Contact: Dr Werner Lanthaler, Chief Executive Officer, Evotec AG, Manfred Eigen Campus, Essener Bogen 7, 22419 Hamburg, Germany, Phone: +49.(0)40.560 81-242, email@example.com