Evotec Picks Up Kinaxo for €12M for Drug Efficacy and Response Technologies
Kinaxo is expected to add about €2.5 million in 2011 revenues.!--h2>
Evotec will pay roughly €12 million for Kinaxo Biotechnologies to bolster its position as fully integrated drug discovery and early development partner for pharma and biotechnology companies. The purchase price consists of a cash consideration of €3 million (about $4.08 million) and 2,597,400 shares. In addition, an earn-out component of up to €4 million (roughly $5.44 million) in cash will become due if certain performance-based milestones are reached.
Evotec believes Kinaxo could earn €2.5 million in 2011 revenues. Integration of Kinaxo’s technologies is expected to enable Evotec and its partners to take earlier educated decisions on drug efficacy, safety, and response in patients.
“Kinaxo has built a unique technology platform that allows comprehensive analysis of cancer signal transduction processes and their response to drug treatment,” notes Axel Ullrich, Ph.D., director of the Max Planck Institute for Biochemistry and co-founder of Kinaxo.
Kinaxo’s platforms include Cellular Target Profiling®, which uncovers the molecular targets of compounds with unknown mode-of-action and reveals possible off-target side effects early in the discovery and development process; KinAffinity®, which determines the cellular selectivity of kinase inhibitors; and PhosphoScout®, which provides valuable knowledge on drug modes-of-action in vivo and how they respond to drug treatment.
The deal is expected to close in April 2011. Despite cash requirements for the transaction and integration costs of approximately €4 million, Evotec expects to keep a strong cash balance in 2011. For the current fiscal year, the company expects to grow revenues by more than 15% and to end 2011 with a liquidity of more than €64 million (about $87.03 million).