- EVOTEC TO FURTHER STRENGTHEN ITS INTEGRATED INNOVATION
OFFERING WITH WORLD-CLASS COMPOUND MANAGEMENT
- SYNERGIES WITH EVOTEC'S DRUG DISCOVERY ALLIANCE
BUSINESS EXPECTED
- €12.5 MIO TOTAL PURCHASE PRICE FOR PROFITABLE BUSINESS
WILL BE PAID IN CASH TO GALAPAGOS
- EVOTEC REVENUE GUIDANCE 2011 WILL INCREASE, STRATEGIC
CASH POSITION REMAINS STRONG
Evotec AG (Frankfurt:EVT) (TecDAX) and Galapagos NV (Euronext:GLPG)
today announced that Evotec has acquired Compound Focus, Inc., the
compound management business of BioFocus, a Galapagos Company.
Strengthen Evotec's leadership role in drug
discovery
This acquisition allows Evotec to augment its early drug
discovery offering substantially, provides critical mass to its
existing compound management offering, and adds profitable
revenues. Compound Focus, Inc. is based in South San Francisco, US
and is the world leader in small molecule compound management
services. The company's technologies are focused on automated
storage and custom design solutions for small molecule drugs. The
current key customer base includes US federal institutes and pharma
companies such as Elan, Lundbeck, Sepracor or Procter & Gamble.
In 2010, Compound Focus had revenues of €7.8M with an operating
profit of €2.6 m.
Transaction structure reflects value
potential
For the acquisition of all shares in Compound Focus Inc. Evotec
will pay Galapagos an immediate cash upfront of €10.25 m and an
additional €2.25 m in potential earn out payments upon performance
of the business in 2012/2013 depending on revenues and certain
corporate milestones.
Dr Werner Lanthaler, Chief Executive Officer of Evotec,
commented: "This acquisition will substantially improve
our ability to support our alliance partners in developing and
managing their compound libraries. The link to our industry leading
screening platform further strengthens our hit identification
capabilities. In addition, the profitable revenues shown by
Compound Focus over the last years will further enhance our
earnings profile going forward."
Onno van de Stolpe, Chief Executive Officer of
Galapagos, commented: "Today's transaction enables us to
concentrate on what we do best in BioFocus and Argenta, providing
top class drug discovery solutions needed to deliver molecules for
our customers. Compound management is not strategic to our
offering. We are pleased to have found a good home for Compound
Focus and wish them continued success as part of Evotec."
Following this transaction, Evotec changes its revenue guidance
for 2011 from €64-66 m to €68-70 m, and Galapagos changes its
revenue guidance for 2011 from €150 m to €146 m.
With comfortably more than €55 m liquidity by the end of 2011,
despite the recently closed acquisition of Compound Focus, the
strategic cash position of Evotec remains very strong.
Burrill Merchant Banking acted as financial adviser to
Galapagos.
Evotec invites you to join a conference call announcing the
acquisition of Compound Focus, Inc.
Details of the Conference
Call: |
|
Wednesday 1 June 2011 at |
2.30 p.m. CET |
1.30 p.m. GMT |
5.30 a.m. PDT / 8.30 a.m. EDT |
|
Dial-in Numbers: |
|
Europe: |
+49 (0) 6103 485 3001 (Germany) |
+44-207-153-2027 (UK) |
US: +1-480-629-9673 |
|
Pass Code: 4444097 |
A simultaneous slide presentation for participants dialing in
via phone is available at www.equitystory.com, password: evotec
0611. You can also listen to the conference call via audio webcast
including presentation slides at www.evotec.com.
If you are unable to attend, a recording will be available for
24 hours after the call at the following phone numbers: +49 69 58
99 90 568 (Germany), +44 207 154 2833 (UK), +1 303 590 3030 (US).
The access code is 4444097#. The on-demand version of the webcast
will be available on our website: http://www.evotec.com -
Investors/Events/Financial Calendar.
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.
The Company operates worldwide providing the highest quality
stand-alone and integrated drug discovery solutions, covering all
activities from target-to-clinic. Evotec 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, oncology and inflammation. Evotec has
established long-term discovery alliances with partners including
Boehringer Ingelheim, CHDI, Genentech, Medimmune/Astra Zeneca,
Novartis and Ono Pharmaceutical. In addition, the Company has
existing development partnerships and product candidates both in
clinical and preclinical development. These include partnerships
with Boehringer Ingelheim, MedImmune and with Andromeda (Teva) in
the field of diabetes. For additional information please go to
www.evotec.com.
About Compound Focus, Inc.
Compound Focus, Inc. is a service division of BioFocus and
provides a range of compound management services. It is home to
sample collections owned by government, academic and commercial
organizations and to the National Institutes of Health Molecular
Libraries Small Molecule Repository. The company was incorporated
in 2006 and currently employs 28 employees. Following the
transaction, Compound Focus will be fully integrated into Evotec's
operations.
About Galapagos NV
Galapagos (Euronext:GLPG) (Pink Sheets:GLPYY) is a mid-size
biotechnology company specialized in the discovery and development
of small molecule and antibody therapies with novel
modes-of-action. The Company is progressing one of the largest
pipelines in biotech, with six programs in development and over 50
discovery programs. Through risk/reward-sharing alliances with
GlaxoSmithKline, Eli Lilly, Janssen Pharmaceutica, Roche and
Servier, Galapagos is eligible to receive up to €2.5 billion in
downstream milestones, plus royalties. The Galapagos Group has
about 800 employees and operates facilities in six countries, with
global headquarters in Mechelen, Belgium. More info at:
www.glpg.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: Dr Werner Lanthaler
Chief Executive Officer
+49.(0)40.560 81-242
+49.(0)40.560 81-333 Fax
werner.lanthaler@evotec.com
Evotec AG
Schnackenburgallee 114
22525 Hamburg (Germany)
Galapagos
Onno van de Stolpe, CEO
Tel: +31 6 2909 8028
ir@glpg.com
Elizabeth Goodwin,
Director Investor Relations
Tel: +31 6 2291 6240
ir@glpg.com
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