Evotec SE — M&A Activity 2014

May 28, 2014

News Details

Corporate | 28 May 2014 07:30

Evotec to establish an anti-infectives platform with the acquisition of Euprotec Ltd

DGAP-News: Evotec AG / Key word(s): Mergers & Acquisitions

28.05.2014 / 07:30

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* ADDS KEY KNOW-HOW AND INFECTIOUS DISEASE THERAPEUTIC AREA CAPABILITIES

* STRENGTHENS EVT EXECUTE AND EVT INNOVATE BUSINESS BY ESTABLISHING AN
ANTI-INFECTIVE PLATFORM

* INITIAL PURCHASE PRICE OF £ 1.9 M IN CASH PLUS A DEFERRED PAYMENT
DEPENDENT ON BUSINESS PERFORMANCE

Manchester, UK and Hamburg, Germany - 28 May 2014: Evotec AG (Frankfurt
Stock Exchange: EVT, TecDAX, ISIN: DE0005664809) today announced the
acquisition of all shares in Euprotec Ltd, a UK-based specialist contract
research organisation. Euprotec is a recognised leader in anti-infective
drug discovery services. With a comprehensive portfolio of assays and
disease models, underpinned by internationally recognised expertise, the
company supports each stage of anti-infective drug discovery and
development programmes from discovery through to late stage pre-clinical
investigation and clinical proof-of-concept studies.

Strengthening Evotec's position as the quality leader in drug discovery
services and creating a new disease franchise to accelerate the Cure X and
Target X initiatives
The acquisition of Euprotec confirms Evotec's leading position as a fully
integrated drug discovery and early development partner for Pharma and
biotechnology companies. Integration of Euprotec's unique capabilities
augments and complements Evotec's high-end drug discovery platform with
anti-infective screening, early PKPD (Pharmacokinetic/Pharmacodynamic)
profiling, an extensive range of disease and efficacy models for
characterisation of anti-bacterials, anti-fungals and anti-virals,
StrainBank, a unique collection of clinical isolates, and adds core disease
biology know-how in infection. These skills further enhance Evotec's
ability to deliver high-quality innovative solutions to its partners on a
global scale.

"Through the acquisition of Euprotec's capabilities and its disease biology
know-how in infection, Evotec expands its technological portfolio to offer
a complete infrastructure and discovery solutions in the field of
infectious diseases", said Dr Werner Lanthaler, Chief Executive Officer of
Evotec AG. "Importantly, we acquire highly innovative approaches, within
our core competence along the discovery value chain, to open new
therapeutic routes in the major market of infectious diseases. There is a
pressing need for new agents to treat key infections due to emerging
resistance to current therapies. Currently, Evotec has two innovative
programmes, TargetPicV and TargetPGB, to develop drugs to treat infectious
diseases and with this acquisition we can expand this portfolio."

Dr Lloyd Payne, CEO and co-founder of Euprotec, added: "We are thrilled to
be joining forces with Evotec and combining its leading-edge drug discovery
platform with Euprotec's comprehensive infectious disease biology
capabilities and expertise. Our vision of delivering integrated,
world-class anti-infective discovery solutions to our clients will now be
realised. We look forward to an exciting new phase of growth with Evotec
and, most importantly, working with our customers to accelerate the
development of new breakthrough anti-infective vaccines and therapies."

Transaction structure reflects value potential
The purchase price consists of a cash consideration of £ 1.9 m and a
deferred payment component of £ 1.25 m in cash. The deferred payment will
be due following through two years after the acquisition and depends upon
the business performance and achieving certain revenue targets. The deal is
expected to close in H1 2014.

Despite cash requirements for the transaction in 2014, Evotec confirms all
prior financial objectives. For the current fiscal year, the Company
expects high single-digit percentage growth in revenue excluding
milestones, upfronts and licences, to spend approximately EUR 10 m to EUR
14 m in R&D and to end the year 2014 with a liquidity of more than EUR 90
m.

ABOUT EUPROTEC LTD
Euprotec, founded in 2008, is a world-leader in the provision of infectious
disease and respiratory biology services. With a highly relevant and
validated portfolio of assays and disease models, underpinned by
internationally recognised expertise, the company supports each stage of
client anti-infective drug discovery and development programs through to
late stage preclinical investigation and clinical proof-of-concept studies.
Euprotec's extensive collection of bacterial and fungal strains/clinical
isolates underpins its comprehensive range of drug discovery services
consisting of a full range of preclinical efficacy models of
bacterial/fungal infection; PKPD profiling and modelling;
susceptibility/MIC testing and in-depth characterisation of antimicrobial
activity; mechanism of action determination and ADME/PK assays. Euprotec is
based in Manchester (UK) operating out of state of the art laboratory
facilities and currently employees 19 employees. For additional information
please go to www.euprotec.com.

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 and inflammation. 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,
MedImmune and Andromeda 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 report. 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

End of Corporate News

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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

End of News DGAP News-Service

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