Evotec Acquires CRO Euprotec To Expand Infectious Disease Portfolio

Evotec announced in a press release that it has acquired all of the shares of Euprotec, a contract research organization (CRO) based in the UK. Euprotec has a portfolio of infectious disease assays and disease models and comprehensive drug discovery services. The acquisition strengthens Evotec’s anti-infective screening, anti-bacterials, anti-fungals, and anti-virals. StrainBank, a collection of clinical isolates, also becomes available to Evotec.

Dr. Werner Lanthaler, CEO of Evotec said of the acquisition, “We acquire highly innovative approaches within our core competence along the discovery value chain.” Dr. Lloyd Payne, CEO and co-founder of Euprotec, said that joining forces would accelerate the company’s discovery and development of anti-infectives. 

Evotec and Euprotec Agreement

Under the agreement, Evotec is purchasing Euprotec for £1.9 million ($3 million) in cash. Depending on whether certain revenue targets are achieved following two years, a deferred payment of £1.25 million is due in cash. The deal is expected to close by the end of 2014.

The acquisition helps Evotec meet its key objectives: it will strengthen Evotec’s fee-for-service model and its partnership model, which involves research fees, milestones, and/or royalties. The two companies expect to focus on infectious disease therapeutic area capabilities initially, working on pharmacokinetic/pharmacodynamic (PKPD) profiling.

Evotec Partnerships

The acquisition of Euprotec comes after several months of new partnership announcements. Recently, Evotec announced that it had entered into collaboration with Eternygen GmbH to develop small molecule inhibitors for metabolic diseases. The two companies intend to use Evotec's technology platform with Eternygen’s sodium coupled citrate transporter NaCT, a target in fatty liver, diabetes, and obesity.

In April, Evotec also announced a research collaboration with Debiopharm to identify and develop novel compounds for tumors and leukemias with defined genetic alterations. Evotec is to conduct pre-clinical discovery while Debiopharm manages clinical development. The program will investigate genetically altered targets with a driver role in a variety of cancers, including prostate cancer and glioblastoma.  

Earlier this spring, Evotech formed an alliance with Panion, a subsidiary of Convergence Pharmaceuticals. The two companies have agreed to develop analgesics for pain. Evotec will identify candidates for drug discovery activities and Panion will move assets into the clinical phase.