Evotec SE — M&A Activity 2014

Dec 2, 2014

News Details

Corporate | 2 December 2014 18:05

Evotec and Sanofi enter into exclusive negotiations for a major multi-component strategic collaboration

DGAP-News: Evotec AG / Key word(s): Miscellaneous

02.12.2014 / 18:05

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* Parties have entered into exclusive negotiations and expect to sign the
transaction in H1 2015
* Goal to improve innovation effectiveness in drug discovery and
pre-clinical development
* Building pipeline focused on oncology
* Innovation bridge from academia to Pharma
* Long-term outsourcing collaboration on key drug discovery services for
Sanofi; Evotec will acquire Sanofi's scientific operations in Toulouse
* Creation of Evotec's European compound management facility and service
* Pioneering open innovation programme with Sanofi and Evotec offering
their combined approx. 1.7 million small molecule libraries to biotech and
other Pharma players
* EUR 250 m minimum guaranteed commitment from Sanofi to Evotec over the
next five years, including a sizeable upfront cash payment that will be
defined in the agreement

Hamburg, Germany - 02 December 2014: Evotec AG (Frankfurt Stock Exchange:
EVT, TecDAX, ISIN: DE0005664809) announced today that it has entered into
exclusive negotiations with Sanofi on a major multi-component strategic
alliance over the next five years.

The collaboration will comprise three major strategic initiatives all
focused on improving innovation effectiveness in the drug discovery and
pre-clinical development space and cement Evotec's position as the leading
drug discovery collaboration partner to the Pharma and biotech industry as
well as academia.

The collaboration will result in a minimum guaranteed commitment from
Sanofi to Evotec of EUR 250 m over the next five years, including a
sizeable upfront cash payment that will be defined in the agreement. It
will include a co-development agreement with associated upfront,
development, regulatory and sales milestones as well as royalties
benefiting both parties. This multi-component transaction is expected to be
signed in the first half of 2015, subject to finalization of definitive
agreements and completion of the appropriate social process.

Dr Werner Lanthaler, Chief Executive Officer of Evotec, said: "We are very
proud that Sanofi has chosen Evotec for this significant alliance. This
collaboration is a major milestone in the drug discovery space and
accelerates Evotec's strategy to become the leading drug discovery partner
to the Pharma and biotech industry as well as academia. We will warmly
welcome the Sanofi employees to the Evotec Group and look forward to
working with them."

"Open innovation is a key driver of Sanofi's strategy. We believe Evotec
will be an ideal partner, a company that fits our quality expectations and
our strategic vision. Our collaboration will secure the future for our
employees in Toulouse and importantly accelerate our pipeline
productivity", said Dr Elias Zerhouni, President Global R&D for Sanofi.

The alliance, upon completion, will cover three major strategic
initiatives:

1. Pipeline-building collaboration with initial focus on oncology
   Under the agreement, both partners will collaborate on selected
   pre-clinical development projects with a focus on oncology and potential
   Cure X/Target X initiatives.

Evotec will typically accelerate drug discovery projects to the point of
pre-clinical development candidates ("PDC") from which point Sanofi may
take over the development and commercialisation. Evotec will license from
Sanofi a portfolio of projects including five well-advanced pre-clinical
projects in oncology that will be progressed to IND ("Investigational new
drug") jointly by Sanofi and Evotec before potential partnering.

French academic bridge programme
Evotec will continue to expand its Cure X/Target X business model to
leverage scientific expertise and a broad portfolio of drug development
services to capitalise on the most promising science from French and
European academia. Sanofi will fund this initiative through a commitment to
Evotec's scouting strategy over the period of the agreements. Sanofi could
provide support to individual projects that will be progressed through this
academic bridge programme.

1. Outsourcing alliance including acquisition of Sanofi's drug discovery
   operations in Toulouse to build an European centre of excellence for
   compound management and drug discovery services
   In order to meet its strategic capacity needs, Evotec will expand its
   industry-leading capabilities in integrated drug discovery of currently
   approx. 650 scientists by integrating a state-of-the-art scientific and
   technological facility which has more than 200 highly qualified and
   experienced scientists from the Sanofi research site in Toulouse, France.
   Evotec will integrate the Toulouse capacities, which is a highly productive
   small molecule discovery site, into its global drug discovery platform. The
   expanded capabilities will cover the early-stage discovery and pre-clinical
   process from screening to medicinal chemistry. From this new facility,
   Evotec will perform collaborative research with its Pharma, biotech and
   academic partners as well as its own internal oncology research.

Strategic service agreement in compound management
Evotec will assume management of Sanofi's global screening compound library
as well as provide a broad range of drug discovery services for Sanofi for
the period of the contracts.
By thus increasing capability in compound management services, Evotec will
cement its position as the world leader in outsourced compound management.

1. Pioneering open innovation by offering combined libraries
   In a ground-breaking initiative within the industry, Sanofi and Evotec plan
   to combine their libraries to make them available for screening to Evotec's
   partners. The Sanofi library, established on its Toulouse site with over
   1,000,000 compounds, will expand Evotec's own corporate library of more
   than 400,000 compounds, thus creating a very large and valuable source of
   starting points for drug discovery. Evotec will screen the libraries
   against collaborators' and partners' targets under pre-agreed terms from
   which Sanofi will receive a contribution if a product is developed from a
   library hit. This initiative further consolidates Evotec's position as the
   leading provider of screening services in the industry.

Evotec invites you to join a conference call to provide information
regarding this major alliance with Sanofi. The conference will be held in
English.

Webcast/Conference Call

Conference call details

Date: Wednesday, 03 December 2014
Time: 9.30 am CET (08.30 am GMT, 3.30 am EST)

From Germany: +49 (0) 69 2017 44 210
From UK: +44 20 7153 9154
From USA: +1 877 423 0830
Access Code: 129176#

A simultaneous slide presentation for participants dialling in via phone is
available at http://www.audio-webcast.com/ password: evotec1214.

Webcast details

To join the audio webcast and to access the presentation slides you will
find a link on our home page www.evotec.com shortly before the event.

A replay of the conference call will be available for 24 hours and can be
accessed in Europe by dialling +49 69 2017 44 221 (Germany) or +44 20 3364
5200 (UK) and in the US by dialling +1 855 839 8920. The access code is
350788#. The on-demand version of the webcast will be available on our
website:
http://www.evotec.com/article/en/Investoren/Finanzberichte-2012-2014/238/6.

ABOUT SANOFI
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. 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 Evotec AG:
Gabriele Hansen, VP Corporate Communications & Investor Relations, Phone:
+49.(0)40.56081-255, gabriele.hansen@evotec.com

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Language: English
Company: Evotec AG
Manfred Eigen Campus / Essener Bogen 7
22419 Hamburg
Germany
Phone: +49 (0)40 560 81-0
Fax: +49 (0)40 560 81-222
E-mail: info@evotec.com
Internet: www.evotec.com
ISIN: DE0005664809
WKN: 566480
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart

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