Evotec acquires Kinaxo, expanding its drug discovery platform with cutting-edge technologies

Wednesday, 09. February 2011 18:48
Evotec AG /
Evotec acquires Kinaxo, expanding its drug discovery platform with cutting-edge
technologies
Processed and transmitted by Thomson Reuters.
The issuer is solely responsible for the content of this announcement.

·         Adds propriEtary Technologies for response prediction and Drug
efficacy and safety assessment; especially in Key indication area oncology

·         Adds fast growing business with an expected revenue of €2.5m in 2011

·         Initial PURCHASE PRICE of approx €12m consists of €3M in cash and
2.6m SHARES; plus earn-out payments of up to €4m Dependent On Performance
milestoneS

Hamburg, Germany - 9 February 2011: Evotec AG (Frankfurt Stock Exchange: EVT,
TecDAX) today announced the signing of a definitive agreement to acquire all
shares in Kinaxo Biotechnologies GmbH, a Munich-based drug discovery alliance
company supporting the development of targeted drugs.

Strengthening  Evotec's position as quality leader in drug discovery

The acquisition of Kinaxo confirms Evotec's leading position as fully integrated
drug discovery and early development partner for pharma and biotechnology
companies. Integration of Kinaxo's novel technologies enables Evotec and its
partners to take earlier educated decisions on drug efficacy, safety and
response in patients.

Kinaxo's capabilities comprise a unique combination of innovative technologies
improving drug development across the entire pharma value chain:


-       Cellular Target Profiling(®) uncovers the molecular targets of compounds
with unknown mode-of-action and reveals possible off-target side effects early
in the discovery and development process.

-       KinAffinity(®) determines the cellular selectivity of kinase inhibitors,
which represent the most important class of targeted cancer drugs.

-       PhosphoScout(®) provides valuable knowledge on drug modes-of-action in
vivo and how they respond to drug treatment.

"Through the acquisition of Kinaxo, Evotec gains access to a highly innovative
technology base in drug discovery, which allows us to integrate a powerful
response prediction platform with our leading drug discovery expertise. We are
proud to significantly strengthen our performance-based discovery offering to
our customers with this unique value proposition," said Dr Werner Lanthaler,
Chief Executive Officer of Evotec AG. "

Dr. Andreas Jenne, CEO of Kinaxo, adds: "We are excited to join forces with
Evotec. Our technology portfolio perfectly fits into Evotec's integrated service
offering. This will allow us to fully leverage our capabilities and grow our
business much faster within larger discovery alliances."

Prof. Dr. Axel Ullrich, Director of the Max-Planck-Institute for Biochemistry,
Martinsried, and co-founder of Kinaxo commented: "Kinaxo has built a unique
technology platform that allows comprehensive analysis of cancer signal
transduction processes and their response to drug treatment. The integration of
the leading drug discovery capability will implement Evotec as a driver towards
personalised medicine in the future."

Transaction structure reflects value potential

The purchase price consists of a cash consideration of € 3m and 2.597.400 shares
from authorised capital. In addition an earn-out component of up to € 4m in cash
will become due if certain performance-based milestones are reached. Parts of
the shares are held in escrow and their release is subject to certain company
events and representations. All shares issued are subject to certain lock-up
provisions. The deal is expected to close in April 2011.

Despite cash requirements for transaction and integration costs of approx. € 4m
resulting from the acquisition, Evotec confirms to keep a very strong strategic
cash balance also in 2011. For the current fiscal year, the Company expects to
grow revenues by more than 15% and to end the year 2011 with a liquidity of more
than € 64 m.

Evotec invites you to join a conference call announcing the acquisition of
Kinaxo.

Details of the Conference Call:

Thursday 10 February 2011 at

8.30 a.m. CET

7.30 a.m. GMT/2.30 a.m. US Time (East Coast)

Dial-in Numbers:

Europe:

+49 (0) 6958 999 0805 (Germany)
+44 (0) 207 153 2027 (UK)
US: +1 480 629 9724

 Pass Code:  4407349

A simultaneous slide presentation for participants dialing in via phone is
available at www.equitystory.com, password: evotec0211.

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 (0) 69 58 99 90 568 (Germany), +44
(0) 20 7959 6720 (UK), +1 303 590 3030 (US). The access code is 4407349#. The
on-demand version of the webcast will be available on our website:
www.evotec.com - Investors/Events/Financial Calendar.

Contact: Dr Werner Lanthaler, Chief Executive Officer,Evotec AG, Tel.:
+49.(0)40.56081-242,  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. Such forward-looking statements include, but are not limited to,
statements about our expected 2010 financial results and financial growth in
2011, our anticipated financing needs, our ability to deliver on our liquidity
guidance, our belief that we are on course to sustainable profitability latest
in 2012, our expectations and assumptions concerning regulatory, clinical and
business strategies, the progress of our clinical development programmes and
timing of the commencement and results of our clinical trials, strategic
collaborations and management's plans, objectives and strategies. These
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. In particular, the risks and uncertainties include,
among other things: risks that product candidates may fail in the clinic or may
not be successfully marketed or manufactured; the risk that we will not achieve
the anticipated benefits of our collaborations, partnerships and acquisitions in
the timeframes expected, or at all; risks relating to our ability to advance the
development of product candidates currently in the pipeline or in clinical
trials; our inability to further identify, develop and achieve commercial
success for new products and technologies; the risk that competing products may
be more successful; our inability to interest potential partners in our
technologies and products; our inability to achieve commercial success for our
products and technologies; our inability to protect our intellectual property
and the cost of enforcing or defending our intellectual property rights; our
failure to comply with regulations relating to our products and product
candidates, including FDA requirements; the risk that the FDA may interpret the
results of our studies differently than we have; the risk that clinical trials
may not result in marketable products; the risk that we may be unable to
successfully secure regulatory approval of and market our drug candidates; and
risks of new, changing and competitive technologies and regulations in the U.S.
and internationally. The list of risks above is not exhaustive. Our most recent
Annual Report on Form 20-F, filed with the Securities and Exchange Commission,
and other documents filed with, or furnished to the Securities and Exchange
Commission, contain additional factors that could impact our businesses and
financial performance. 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.










--- End of Message ---

Evotec AG
Schnackenburgallee 114 Hamburg Germany

WKN: 566480;ISIN: DE0005664809;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;


Pdf of PressRelease:
http://hugin.info/131215/R/1487108/422520.pdf




This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Evotec AG via Thomson Reuters ONE

[HUG#1487108]
Related Links: Evotec SE
Author:
Hugin
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.