Evotec AG / / Ad hoc:Evotec acquires compound management business from Galapagos . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.
Hamburg, Germany - Evotec AG (Frankfurt Stock Exchange, TecDAX, ISIN: DE 000 566480 9) and Galapagos NV (Euronext: GLPG) today announced that Evotec has acquired Compound Focus, Inc., the compound management business of BioFocus, a Galapagos Company.
Evotec acquires all shares in Compound Focus Inc. Evotec will pay Galapagos an immediate cash upfront of €10.25 m and an additional €2.25 m in potential earn out payments upon performance of the business in 2012/2013 depending on revenues and certain corporate milestones.
This acquisition allows Evotec to augment its early drug discovery offering substantially, provides critical mass to its existing compound management offering, and adds profitable revenues. Compound Focus, Inc. is based in South San Francisco, US and will be fully integrated into Evotec's operations.
Given this acquisition Evotec changes its revenue guidance for 2011 from €64-66 m to €68 -70 m. With more than €55 m liquidity by the end of 2011, despite the recently closed acquisition of Compound Focus, the strategic cash position of Evotec remains very strong.