HAMBURG, Germany--
Evotec AG recently announced that it has acquired CompoundFocus, Inc., the compound management business of BioFocus, from Galapagos NV.Evotec will pay 10.25 million euros (approximately $14.7 million) to Galapagosin an immediate cash upfront to acquire all shares of Compound Focus Inc., Inaddition, Evotec will also pay 2.25 million euros ($3.2 million) in potentialearn out payments based on the business's performance in 2012 and 2013,revenues and the achievement of certain corporate milestones.
"This acquisition will substantially improve our ability tosupport our alliance partners in developing and managing their compoundlibraries," said Dr Werner Lanthaler, Chief Executive Officer of Evotec in astatement about the acquisition. "The link to our industry leading screeningplatform further strengthens our hit identification capabilities. In addition,the profitable revenues shown by Compound Focus over the last years will furtherenhance our earnings profile going forward."
Compound Focus posted revenues of 7.8 million euros ($11.2million) in 2010, and had an operating profit of 2.6 million euros ($3.7million). The company is based in South San Francisco, Calif., and is the worldleader in small molecule compound management services, with technologies thatfocus on automated storage and custom design solutions specifically for smallmolecule drugs. Compound Focus is home to sample collections that are owned byorganizations on the government, academic and commercial levels, as well as tothe National Institutes of Health Molecular Libraries Small MoleculeRepository. Once the acquisition is complete, Compound Focus's 28 employeeswill be fully integrated into Evotec.
As a drug discovery alliance and development partnershipcompany, Evotec focuses on rapidly progressing innovative product approaches.The organization operates worldwide and provides high quality stand-alone andintegrated drug discovery solutions.
Onno van de Stolpe, Chief Executive Officer of Galapagos,said they are pleased with the agreement.
"Today's transaction enables us to concentrate on what we dobest in BioFocus and Argenta, providing top class drug discovery solutionsneeded to deliver molecules for our customers," said van de Stolpe. "Compoundmanagement is not strategic to our offering. We are pleased to have found agood home for Compound Focus and wish them continued success as part ofEvotec."
As a result of the acquisition, Evotec changed its 2011 revenueguidance from 64 million to 66 million euros ($91.8 million to $94.6 million)to 68 million to 70 million euros ($97.5 million to $100.4 million). On itspart, Galapagos changed its 2011 revenue guidance from 150 million euros($215.1 million) to 146 million euros ($209.3 million).
Burrill Merchant Banking served as financial adviser toGalapagos for the acquisition.
SOURCE: Evotec AG press release
