Evotec said today it acquired Euprotec, a contract research organization (CRO) specializing in infectious disease and respiratory biology services, in an up-to-£3.15 million (about $5.3 million) deal the buyer said will expand and complement its current drug discovery capabilities.
According to Evotec, the deal will enhance its drug discovery platform with services that include a full range of preclinical efficacy models of bacterial and fungal infection; pharmacokinetic/pharmacodynamic (PKPD) profiling and modeling; susceptibility/MIC testing and in-depth characterization of antimicrobial activity; StrainBank, a unique collection of clinical isolates, and core disease biology know-how such as mechanism of action determination and ADME/PK assays.
“Our vision of delivering integrated, world-class anti-infective discovery solutions to our clients will now be realized,” Lloyd Payne, Ph.D., Euprotec’s CEO and co-founder, said in a statement.
Added Evotec CEO Werner Lanthaler, M.D., Ph.D.: “There is a pressing need for new agents to treat key infections due to emerging resistance to current therapies. Currently, Evotec has two innovative programs, TargetPicV and TargetPGB, to develop drugs to treat infectious diseases and with this acquisition we can expand this portfolio.”
TargetPicV, launched in 2012, is Evotec’s collaboration with Haplogen to co-develop new drugs against viral infectious diseases by targeting a human protein that is essential for pathogenic viruses to infect their host cell.
TargetPGB, launched in May 2013, stems from a research collaboration between Evotec and Harvard University aimed at discovering and developing novel anti-bacterial agents by targeting peptidoglycan biosynthesis (PGB), a target family involved in bacterial cell wall biosynthesis.
Evotec agreed to pay Euprotec £1.9 million (about $3.2 million) in upfront cash, plus £1.25 million ($2.1 million) in deferred cash due two years after the deal closes, and tied to business performance and achieving undisclosed revenue targets.
The deal is expected to close before the end of the first half of this year.
Founded in 2008, Euprotec is headquartered in Manchester, U.K., and employs 19 people.
Evotec said the Euprotec deal will not change earlier-announced projections of generating “high single-digit percentage” growth in revenue excluding milestones, upfront payments, and licenses; spending between €10 million ($13.6 million) and €14 million ($19 million) in R&D; and finishing 2014 with liquidity of more than €90 million ($122.3 million).