Evotec acquires DeveloGen in a 14 million-euro deal

Evotec AG has signed a definitive agreement to acquire fellow Germany-based DeveloGen, a biopharmaceutical company engaged in the discovery of novel therapeutic approaches for the treatment of metabolic and endocrine disorders, for up to14 million euros ($17.7 million) in shares plus performance-related deferred payments (earn-out).

The transaction significantly catalyses Evotec's strategy to become the world leading drug discovery and early development partner for pharma and biotechnology companies, the company says, noting that the acquisition immediately adds two complementary alliances to its portfolio of core assets:

* an integrated discovery alliance with Boehringer Ingelheim on small molecules to treat insulin resistance (type 2 diabetes). In this performance-based alliance Evotec will receive ongoing research funding and may earn potential milestone payments of up to237 million euros for the lead compound as well as royalty payments; and