Evotec acquires compound management business from Galapagos

Wednesday, 01. June 2011 08:34
·         Evotec to further strengthen its integrated innovation offering with
world-class compound management
·         Synergies with Evotec's drug discovery alliance business expected
·         €12.5 Mio total purchase price for profitable business will be paid in
cash to Galapagos
·         Evotec Revenue guidance 2011 will increase, strategic cash position
remains strong

Hamburg, Germany; Mechelen, Belgium - 1 June 2011: Evotec AG (Frankfurt Stock
Exchange: EVT; TecDAX) and Galapagos NV (Euronext: GLPG) today announced that
Evotec has acquired Compound Focus, Inc., the compound management business of
BioFocus, a Galapagos Company.

Strengthen Evotec's leadership role in drug discovery


This acquisition allows Evotec to augment its early drug discovery offering
substantially, provides critical mass to its existing compound management
offering, and adds profitable revenues. Compound Focus, Inc. is based in South
San Francisco, US and is the world leader in small molecule compound management
services. The company's technologies are focused on automated storage and custom
design solutions for small molecule drugs. The current key customer base
includes US federal institutes and pharma companies such as Elan, Lundbeck,
Sepracor or Procter & Gamble. In 2010, Compound Focus had revenues of €7.8M with
an operating profit of €2.6M.

Transaction structure reflects value potential

For the acquisition of all shares in Compound Focus Inc. Evotec will pay
Galapagos an immediate cash upfront of €10.25M and an additional €2.25M in
potential earn out payments upon performance of the business in 2012/2013
depending on revenues and certain corporate milestones.

Dr Werner Lanthaler, Chief Executive Officer of Evotec, commented: "This
acquisition will substantially improve our ability to support our alliance
partners in developing and managing their compound libraries. The link to our
industry leading screening platform further strengthens our hit identification
capabilities. In addition, the profitable revenues shown by Compound Focus over
the last years will further enhance our earnings profile going forward."

Onno van de Stolpe, Chief Executive Officer of Galapagos, commented: "Today's
transaction enables us to concentrate on what we do best in BioFocus and
Argenta, providing top class drug discovery solutions needed to deliver
molecules for our customers. Compound management is not strategic to our
offering. We are pleased to have found a good home for Compound Focus and wish
them continued success as part of Evotec."

Following this transaction, Evotec changes its revenue guidance for 2011 from
€64-66 m to €68 -70 m, and Galapagos changes its revenue guidance for 2011 from
€150 m to €146 m.

With comfortably more than € 55m liquidity by the end of 2011, despite the
recently closed acquisition of Compound Focus, the strategic cash position of
Evotec remains very strong.

Burrill Merchant Banking acted as financial adviser to Galapagos.
Evotec invites you to join a conference call announcing the acquisition of
Compound Focus, Inc.

Details of the Conference Call:

Wednesday 1 June 2011 at
2.30 p.m. CET
1.30 p.m. GMT
5.30 a.m. PDT / 8.30 a.m. EDT

Dial-in Numbers:

Europe:
+49 (0) 6103 485 3001 (Germany)
+44-207-153-2027 (UK)
US: +1-480-629-9673

Pass Code:  4444097

A simultaneous slide presentation for participants dialing in via phone is
available at www.equitystory.com, password: evotec 0611.

You can also listen to the conference call via audio webcast including
presentation slides at www.evotec.com.

If you are unable to attend, a recording will be available for 24 hours after
the call at the following phone numbers: +49 69 58 99 90 568 (Germany),
+44 207 154 2833 (UK), +1 303 590 3030 (US). The access code is 4444097#. The
on-demand version of the webcast will be available on our website:
http://www.evotec.com- Investors/Events/Financial Calendar.

About Evotec AG
Evotec is a drug discovery alliance and development partnership company focused
on rapidly progressing innovative product approaches with leading pharmaceutical
and biotechnology companies. The Company operates worldwide providing the
highest quality stand-alone and integrated drug discovery solutions, covering
all activities from target-to-clinic. Evotec has established a unique position
by assembling top-class scientific experts and integrating state- of-the-art
technologies as well as substantial experience and expertise in key therapeutic
areas including neuroscience, pain, metabolic diseases, oncology and
inflammation. Evotec has established long-term discovery alliances with partners
including Boehringer Ingelheim, CHDI, Genentech, Medimmune/Astra Zeneca,
Novartis, Ono Pharmaceutical and Roche. In addition, the Company has existing
development partnerships and product candidates both in clinical and preclinical
development. These include partnerships with Boehringer Ingelheim, MedImmune and
with Andromeda (Teva) in the field of diabetes. For additional information
please go towww.evotec.com.

About Compound Focus
Compound Focus, Inc. is a service division of BioFocus and provides a range of
compound management services. It is home to sample collections owned by
government, academic and commercial organizations and to the National Institutes
of Health Molecular Libraries Small Molecule Repository. The Company was founded
in 2006 and currently employs 28 employees. Following the transaction, Compound
Focus will be fully integrated into Evotec's operations.
About Galapagos
Galapagos (Euronext: GLPG; OTC: GLPYY) is a mid-size biotechnology company
specialized in the discovery and development of small molecule and antibody
therapies with novel modes-of-action. The Company is progressing one of the
largest pipelines in biotech, with six programs in development and over 50
discovery programs. Through risk/reward-sharing alliances with GlaxoSmithKline,
Lilly, Janssen Pharmaceutica, Roche and Servier, Galapagos is eligible to
receive up to €2.5 billion in downstream milestones, plus royalties. The
Galapagos Group has around 800 employees and operates facilities in six
countries, with global headquarters in Mechelen, Belgium. More info
at:www.glpg.com


CONTACTS


Galapagos NV
Onno van de Stolpe, CEO
Tel: +31 6 2909 8028

Elizabeth Goodwin, Director Investor Relations
Tel: +31 6 2291 6240
ir@glpg.com


Evotec AG
Dr Werner Lanthaler, CEO
Tel: +49 40 560 81 242
werner.lanthaler@evotec.com


Forward-Looking Statements
Information set forth in this press release contains forward-looking statements,
which involve a number of risks and uncertainties. The forward-looking
statements contained herein represent the judgement of Evotec as of the date of
this report. Such forward-looking statements are neither promises nor
guarantees, but are subject to a variety of risks and uncertainties, many of
which are beyond our control, and which could cause actual results to differ
materially from those contemplated in these forward-looking statements. We
expressly disclaim any obligation or undertaking to release publicly any updates
or revisions to any such statements to reflect any change in our expectations or
any change in events, conditions or circumstances on which any such statement is
based.







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Source: Galapagos NV via Thomson Reuters ONE

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Related Links: Galapagos N.V.
Author:
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