- Total deal value of € 250 m, including more than € 40 m upfront cash payment
- Long-term discovery service collaboration with Sanofi
- Major pipeline-building initiative with focus on oncology
- Evotec acquires Sanofi's scientific operations and related employees at Toulouse site
- Creation of Evotec's European compound management centre
- Sanofi and Evotec offering joint small molecule libraries to biotech and other Pharma players for hit discovery
- Establishment of French academic bridge
HAMBURG, Germany, March 19, 2015 (GLOBE NEWSWIRE) -- Evotec AG (Frankfurt Stock Exchange:EVT) (TecDAX) (ISIN:DE0005664809) today announced that a definitive agreement for a major multi-component strategic alliance over the next five years has been signed with Sanofi. The transaction is expected to close on 31 March 2015. This successfully concludes the exclusive negotiations for a major multi-component strategic collaboration which the two companies entered into on 02 December 2014.
The collaboration will result in a minimum guaranteed commitment from Sanofi to Evotec of € 250 m, including more than € 40 m upfront cash payment. The five-year agreement includes initiatives with both of Evotec's two business segments (EVT Execute and EVT Innovate).
Capacity and capability expansion
Following its strategic growth plans, Evotec will expand its industry-leading capabilities in drug discovery by integrating a state-of-the-art facility of approx. 20,000 m2 and more than 200 highly qualified and experienced employees in Toulouse, France. Evotec will integrate the Toulouse capacities into its global drug discovery infrastructure and offering. The expanded capabilities will serve to support collaborative research in drug discovery from screening to identification of pre-clinical candidates with Evotec's Pharma, biotech, venture capital and academic partners.
Strategic outsourcing agreement
Evotec will provide a broad range of long-term drug discovery services to Sanofi. This agreement is centred on the core small-molecule discovery platforms in Toulouse for the period of the contract over the next five years. In addition, Evotec will assume management of Sanofi's global screening compound library.
Offering of joint small-molecule libraries
In a first-in class, ground-breaking 'open innovation initiative', both companies will combine their libraries and offer them for screening to Evotec's business partners. This creates one of the largest and most valuable sources of starting points for drug discovery with approx. 1,700,000 compounds available to screen.
Pipeline-building initiative in oncology
The definitive agreement defines the conditions under which Evotec and Sanofi intend to jointly progress a portfolio of primarily oncology related projects, including five advanced, pre-clinical projects and further discovery-stage assets, to IND ("Investigational New Drug") status or other value inflection points before partnering them.
French academic bridge
Sanofi and Evotec aim at further energising and accelerating the translation of excellent science from academic institutions to Pharma. In a joint effort, Evotec will scout and incubate projects generated in France into the pipeline of Evotec's Cure X/ Target X strategy.
Dr Werner Lanthaler, Chief Executive Officer of Evotec, commented: "We are very excited to welcome our new colleagues to Evotec. We would also like to welcome Sanofi as a new strategic customer and key alliance partner. This transaction supports our long-term strategic growth plans for our EVT Execute and EVT Innovate segments and brings significant value to Evotec's shareholders without the need for dilutive financing."
"Sanofi is pleased to welcome Evotec as a new strategic partner in France. We highly value this collaboration, which will reinforce Toulouse Biopark as a major biomedical research platform in Europe and create a field of opportunities for our employees, while contributing to the vitality of the local ecosystem," said Dr Elias Zerhouni, President Global R&D for Sanofi.
Given the complexity of the transaction and the nature of some of the consideration, Evotec's financial guidance will only be updated after careful consideration with the auditors. An update of how the transaction will impact the financial projections of Evotec will be given at Evotec's year-end presentation for 2014 on 24 March 2015.
Sanofi, a global healthcare leader, discovers, develops and distributes therapeutic solutions focused on patients' needs. Sanofi has core strengths in the field of healthcare with seven growth platforms: diabetes solutions, human vaccines, innovative drugs, consumer healthcare, emerging markets, animal health and the new Genzyme. Sanofi is listed in Paris (EURONEXT:SAN) and in New York (NYSE:SNY).
ABOUT EVOTEC AG
Evotec is a drug discovery alliance and development partnership company focused on rapidly progressing innovative product approaches with leading pharmaceutical and biotechnology companies, academics, patient advocacy groups and venture capitalists. We operate worldwide providing the highest quality stand-alone and integrated drug discovery solutions, covering all activities from target-to-clinic. The Company has established a unique position by assembling top-class scientific experts and integrating state-of-the-art technologies as well as substantial experience and expertise in key therapeutic areas including neuroscience, pain, metabolic diseases as well as oncology, inflammation and infectious diseases. Evotec has long-term discovery alliances with partners including Bayer, Boehringer Ingelheim, CHDI, Genentech, Janssen Pharmaceuticals, MedImmune/AstraZeneca, Roche and UCB. In addition, the Company has existing development partnerships and product candidates both in clinical and pre-clinical development. These include partnerships with Boehringer Ingelheim and MedImmune in the field of diabetes, with Janssen Pharmaceuticals in the field of depression and with Roche in the field of Alzheimer's disease. For additional information please go to www.evotec.com.
FORWARD LOOKING STATEMENTS — Information set forth in this press release contains forward-looking statements, which involve a number of risks and uncertainties. The forward-looking statements contained herein represent the judgement of Evotec as of the date of this press release. Such forward-looking 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. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.
CONTACT: For further information, please contact Gabriele Hansen VP, Corporate Communications & Investor Relations +49.(0)40.560 81-255 +49.(0)40.560 81-333 Fax firstname.lastname@example.org Evotec AG Manfred Eigen Campus Essener Bogen 7 22419 Hamburg (Germany)Source:Evotec AG