New company Breakpoint Therapeutics formed

Evotec (EVT: Xetra) today announced the formation of Breakpoint Therapeutics GmbH, a spin-off company focusing on the development of the German biotech firm's DNA damage response (DDR) portfolio, comprising discovery-stage assets and drug targets that promise broad therapeutic application in a variety of cancers.

Breakpoint Therapeutics' mission is to develop first and best-in-class oncology drugs that interfere with DNA repair and replication stress pathways to facilitate the cure of therapy-resistant cancers.

Breakpoint Therapeutics will initially focus on advancing multiple drug discovery programs initiated at Evotec that address high unmet medical needs of different patient groups. The goal of the spin-off company is to accelerate early projects through discovery and pre-clinical development and expect to deliver the first investigational new drug (IND)-ready drug in 2022.

30 million euros initial funding led by Medicxi

The early stage funding amounting to 30 million euros ($33.7 million) will be covered by a renowned international investor consortium led by Medicxi, a life sciences-focused investment firm, Taiho Ventures, the venture capital arm of Taiho Pharmaceutical, and Evotec. Evotec will hold below 50% of the company and consolidate at equity accordingly.

The company will conduct its research activities using Evotec's fully-established, validated and industrialized platforms. This highly virtual set up of Breakpoint Therapeutics achieves maximal flexibility in accessing required resource to drive projects forward at highest scientific standards and best capital efficiency.

"The formation of Breakpoint Therapeutics with a core team of Evotec scientists fits well within our strategy of creating upside with an optimal risk-reward profile through participation in companies operating in selected fields of high strategic medical relevance. Creating and advancing highly capital efficient virtual biotech initiatives is one of the key advantages with the outstanding platform of Evotec," commented Evotec chief executive Dr Werner Lanthaler.