German contract developer Evotec pocketed €8 million ($10 million) from its ongoing R&D collaborations with Bayer and Johnson & Johnson ($JNJ), capping a big year for the innovative company.
With Bayer, Evotec is working on a 5-year collaboration signed in 2012 in which the pair are trying to identify new treatments for endometriosis. Evotec advanced some molecules from the discovery stage into preclinical development, triggering a payout as it works toward delivering three clinical candidates for the disease.
With J&J's Janssen unit, Evotec is working on NMDA-antagonist portfolio for development against CNS diseases, saying it reached an "important validation milestone" on a new compound, which led to an undisclosed payout.
The revenue will count toward Evotec's 2014 haul, the company said, contributing to its expected single-digit growth on the year.
The company is looking forward to a big 2015 as it prepares to sign an expansive deal with Sanofi ($SNY) in which the drugmaker will invest at least €250 million ($310 million) over 5 years in Evotec, handing over a French research site and forging deep R&D ties with the company.
Evotec splits its business into two halves: EVT Execute, which operates like a CRO, and EVT Innovate, which outlicenses internally developed candidates. The former half largely pays the bills, thanks to risk-sharing deals with the likes of Boehringer Ingelheim and Roche ($RHHBY), but Evotec has taken strides to build up its internal efforts through acquisitions and licensing agreements.
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