Evotech has agreed to acquire DeveloGen in an all-share deal.
German Pharmaceuticals company Evotech has agreed to acquire DeveloGen in an all-share deal.
The transaction consists of €14 million (£11.9 million) in shares, plus a further undisclosed performance-related payment.
Founded in 1997, DeveloGen is a biopharmaceuticals company with a focus on the treatment of diabetes. Based in Goettingen, Germany, the company received its first round of funding in 1999 from Atlas Venture, Global Life Science and IMH.
Evotech was founded in Germany in 1993 and has offices in the UK, Singapore and India. The company has around 485 staff and for the 2009 financial year posted sales of €42.7 million. Evotech has research partnerships with a number of multinational pharmaceuticals companies, including Pfizer and Genentech.
As part of the acquisition, Evotech will gain the research alliances of DeveloGen, which include a joint venture with the pharmaceuticals company Boehringer Ingelheim to research insulin resistance. As part of the Boehringer Ingelheim deal, Evotech will receive research funding and potential milestone payments of up to €237 million for the lead drug compound, as well as royalties.
Dr Werner Lanthaler, CEO of Evotec, says: ‘Through the acquisition of core DeveloGen assets and its disease biology know-how in metabolic disorders, Evotec broadens its portfolio of high-value partnerships and adds substantial potential for milestone payments over the next years.’