Evotec acquires Kinaxo, Profitable Exit for Seed-Investor High-Tech Gründerfonds
Evotec expands its drug discovery platform with cutting-edge technologies
Evotec AG (Frankfurt Stock Exchange: EVT, TecDAX) 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 which enables Evotec to add proprietary technologies for response prediction and drug efficacy and safety assement, especially in the key are oncology, to their service portfolio.
“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.”
“We are especially convinced by the synergistic effects of the merger with Evotec which enables our portfolio company Kinaxo to better play out the strength of their technology platforms. Moreover as the seed investor of Kinaxo we are pleased to return the investment back to our investors with an attractive multiple.” stated Dr Caroline Fichtner, Senior Investment Manager of High-Tech Gründerfonds, about the successful exit.
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.
About Evotec AG
Evotec is a leader in the discovery and development of novel small molecule drugs with operational sites in Europe and Asia. The Company has built substantial drug discovery expertise and an industrialised platform that can drive new innovative small molecule compounds into the clinic. In addition, Evotec has built a deep internal knowledge base in the treatment of diseases related to neuroscience, pain, oncology, inflammation and metabolic diseases. Leveraging these skills and expertise the Company intends to develop best-in-class differentiated therapeutics and deliver superior science-driven discovery alliances with pharmaceutical and biotechnology companies. Evotec has long-term discovery alliances with partners including Boehringer Ingelheim, CHDI, Genentech, Novartis, Ono Pharmaceutical and Roche. Evotec has product candidates in clinical development and a series of preclinical compounds and development partnerships, including for example a strategic alliance with Roche for the EVT 100 compound family, subtype selective NMDA receptor antagonists for use in treatment-resistant depression and an alliance in the field of diabetes with Andromeda (Teva).
For additional information please go to www.evotec.com
Kinaxo is a privately held biotechnology company based in Munich, Germany. The company was founded in 2005 and currently employs 25 employees. Following the transaction, Kinaxo will be fully integrated into Evotec’s operations.
For additional information please go to www.kinaxo.com
About High-Tech Gründerfonds
The High-Tech Gründerfonds invests risk capital in young, high-potential technology companies that convert promising research results in business success. By means of the seed financing the start-ups shall carry on with the R & D project until the provision of a prototype or a “proof of concept“ or until the lancing on the market. The High-Tech Gründerfonds has a funds volume of about 272 million EUR. Investors of the Public Private Partnership are the German Federal Ministry for Economy and Technology, the KfW Banking Group and the six industrial company groups BASF, Deutsche Telekom, Siemens, Robert Bosch, Daimler, and Carl Zeiss.
High-Tech Gründerfonds Management GmbH
Dr. Caroline Fichtner
Senior Investment Manager
Phone: +49 228 82300100
Fax: +49 228 82300050