AstraZeneca unit in 260 million-euro metabolic disease alliance with Evotec; disappointing Crestor patent ruling

Germany’s Evotec AG (FSE: EVT), via its subsidiary Develogen AG, has entered into a license and collaboration agreement with Anglo-Swedish drug major AstraZeneca’s (LSE: AZN) USA-based biologics subsidiary MedImmune in the diabetes therapeutic area, with a particular focus on the regeneration of insulin producing beta cells.

The agreement triggers an upfront payment of 5 million euros ($6.6 million). Further on, additional deferred payments including potential milestone payments of up to 254 million euros, as well as royalties, are agreed. The milestone payments will be due upon achievement of certain clinical as well as regulatory and commercial events.

Further milestone payments may be achieved with the approval of additional indications and programs. Evotec will also receive research payments to support further in vivo and in vitro pharmacology efforts conducted in collaboration with MedImmune. The license gives MedImmune exclusive access to a portfolio of research programs and represents the first deal executed by Evotec on beta cell regeneration assets and capabilities.