Denmark’s Novo A/S is investing €90.3 million (approximately $96 million) in Evotec, through the purchase of newly issued Evotec shares at €6.83 (approximately $7.3) per share. The private placement will give Novo an 8.9% holding in Evotec, which says that it will use the funds to support expansion of its outsourced services business and pipeline growth.
“We are delighted that Novo A/S, a highly regarded and well-known long-term investor, has made this investment in Evotec,” commented Werner Lanthaler, M.D., Ph.D., Evotec CEO. “This investment will allow us to accelerate our strategy to expand and invest in our best-in-class platform and outsourcing services and to build and invest in promising Cure X and Target X initiatives together with top academic partners and biotech globally.”
The Cure X and Target X initiatives are part of Evotec’s EVT Innovate program of in-house development focused on indications within Evotec’s established disease areas, including metabolic and inflammatory disease, neurology, oncology, pain, and infectious diseases. Projects are positioned for partnering with industry.
The new investment in Evotec follows a number of deals announced by the firm during the the last month of 2016 and first month of 2017. In January, Evotec inked an ion channel target drug discovery collaboration with Asahi Kasei Pharma. Also in January, Evotec and MaRS Innovation established a new firm, Fibrocor Therapeutics, to develop new treatments for fibrotic diseases. Evotec separately made an €8 million (approximatey $8.3 million) investment in metabolic diseases company Eternygen. In December, Evotec reported a neurodegenerative diseases drug discovery collaboration with Celgene, and teamed up with Forge Therapeutics to develop new treatments for superbugs.