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news.Evotec OAI AG has acquired the outstanding 78% of Evotec Neurosciences it did not already own and has secured E47 million in cash to develop its central nervous system pipeline.
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Evotec Neurosciences (ENS) discovers and develops therapeutics for the treatment of Alzheimer’s disease and other central nervous system (CNS) disorders with high unmet medical needs. The acquisition will be effected through a share-for-share exchange transaction in which Evotec will issue approximately 14,300,000 new ordinary shares. The transaction values ENS at E49 million, including around E20 million of ENS cash.
The new and significantly expanded capabilities Evotec will have as a result of the acquisition have attracted a leading group of investors, who committed to subscribe to ten million new ordinary shares of Evotec priced at E2.72 each. Upon completion of the acquisition of ENS and this equity investment, Evotec will have total cash resources of more than E60 million.
The funds will be used to develop the ENS pipeline with the objective of having two products in clinical trials in 2006, and at least one of these developed to proof-of-concept and ready for partnering by 2008.
Commenting on the announcement, Joern Aldag, president and CEO of Evotec, said: “These two transactions, the acquisition of ENS and the capital increase, provide a great basis to leverage the skill base built over many years at Evotec in contract research. They allow Evotec to significantly expand our proprietary programs and to create our own proprietary drug discovery and development company specializing in diseases of the central nervous system.”
On completion of the acquisition and the financing, Evotec will have in place the necessary resources and expertise to create a sustainable CNS business, having a broad portfolio of preclinical programs in Alzheimer’s disease, Parkinson’s disease, neuropathic pain and other CNS indications, with the first product expected to enter the clinic in 2005 and another one in 2006.
The company will also have licensing agreements and CNS research partnerships with three of the world’s leading pharmaceutical companies (Roche, Boehringer Ingelheim and Takeda Pharmaceuticals), a world-class contract research business and access to some of the world’s leading science in CNS diseases.