Evotec and Sanofi negotiate 250 million euro strategic collaboration

German biotech company Evotec (Frankfurt Stock Exchange: EVT) has entered into exclusive negotiations with French drug major Sanofi (Euronext: SAN) on a 250 million euro ($308 million) strategic alliance over the next five years.

The collaboration will comprise three major strategic initiatives focused on improving the drug discovery and preclinical development space. It will result in a minimum guaranteed commitment from Sanofi to Evotec of 250 million euros over the next five years, including a sizeable upfront cash payment that will be defined in the agreement.

The alliance will also include a co-development agreement with associated upfront, development, regulatory and sales milestones as well as royalties benefiting both parties. The 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.