Evotec acquires MPS-spin-off Kinaxo
From basic research to the development of new drugs
Evotec AG, a leading company in the discovery and development of novel small molecule drugs, acquired all shares of Kinaxo Biotechnologies GmbH, a Munich-based drug discovery alliance company supporting the development of targeted drugs. With the acquisition of the MPS-spin-off Kinaxo and before Develogen AG several technologies from different Max-Plancks Institutes are now powerfully brought together and continued under the roof of the Evotec AG, which had also arisen from a Max-Planck Institute.
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 Werner Lanthaler, Chief Executive Officer of Evotec AG. “
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.”
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.”
“The takeover again shows that the basic research of the Max Planck Society (MPS) often delivers the technology base for successful company-spin-offs. We from Max Planck Innovation are glad about the fact that we could make an important contribution to the enterprise success with our active support in the start-up phase of Kinaxo as well as the successful search for investors“, according to Jörn Erselius, managing director of Max Planck Innovation, the technology transfer organisation of the MPS
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.