Evotec OAI secures funds to develop CNS pipeline
German drug discovery and development company Evotec OAI has acquired the outstanding 78% of Evotec Neurosciences (ENS) not already owned by Evotec.
German drug discovery and development company Evotec OAI has acquired the outstanding 78% of Evotec Neurosciences (ENS) not already owned by Evotec.
ENS discovers and develops therapeutics for the treatment of Alzheimer's disease and other CNS disorders with high unmet medical needs. The transaction values ENS at €49m, including approximately €20m million of ENS cash. John Kemp, ceo of ENS, will join the executive committee of Evotec on completion of the transaction.
The company has also secured funding of €27m from a group of investors. Upon completion of the acquisition of ENS and this equity investment, Evotec will have total cash resources of more than €60m, including approximately €15m cash on Evotec's balance sheet prior to the transactions. The funds will be used to develop the ENS pipeline with the objective of having two products in clinical trials in 2006, and at least one of these developed to proof-of concept and ready for partnering by 2008.
'These two transactions - the acquisition of ENS and the capital increase - provide a great basis to leverage the skill base built over many years at Evotec in contract research. They allow Evotec to significantly expand our proprietary programmes and to create our own proprietary drug discovery and development company specialising in diseases of the central nervous system,' commented Joern Aldag, president and ceo of Evotec.
'Through the acquisition of ENS we are gaining access to world class science, validated by partnerships with some of the world's major pharmaceutical companies, and an exciting pipeline of new products which can now be funded through to proof-of-concept.'