Evotec SE — M&A Activity 2015

Mar 20, 2015

News Details

Corporate | 20 March 2015 00:49

Evotec and Sanofi sign definitive agreement for major multi-component strategic alliance

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

2015-03-20 / 00:49

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Evotec and Sanofi sign definitive agreement for major multi-component
strategic alliance

* Total deal value of EUR 250 m, including more than EUR 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 - 20 March 2015: 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 EUR 250 m, including more than EUR 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.

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, 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 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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart

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