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STRENGTHENS CELL-BASED SCREENING AND REAGENT PLATFORM AT EVOTEC'S HAMBURG SITE
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ADDS HIGH-MARGIN BUSINESS WITH AN EXPECTED REVENUE OF MORE THAN €1.0 M IN 2013
- INITIAL PURCHASE PRICE OF APPROX €1.2 M IN CASH PLUS AN EARN-OUT PAYMENT DEPENDENT ON BUSINESS PERFORMANCE
HAMBURG, Germany, Jan. 3, 2013 (GLOBE NEWSWIRE) -- Evotec AG (Frankfurt:EVT) (TecDAX) today announced the acquisition of all shares in Cell Culture Service GmbH (CCS), a Hamburg-based company which supports the cell culture needs of a world-wide customer base of biotech and Pharmaceutical companies. CCS is one of the leading suppliers of custom cells and cell-based reagents such as recombinant assay cell lines, assay-ready Frozen Instant Cells, qualified membranes, and proteins for high throughput screening with more than ten years experience in bulk cell production.
Strengthening Evotec's position as quality leader in drug discovery solutions
The acquisition of CCS confirms Evotec's leading position as a fully integrated drug discovery and early development partner for Pharma and biotechnology companies. Integration of CCS' unique capabilities, such as frozen cell preparations and bulk cell transfection for cell-based screening will enable Evotec's partners to access the latest science and the best-in-class technology infrastructure to increase efficiency in the drug discovery process.
CCS' large scale processes for cell production, freezing and storage including the entire team of specialised cell culture scientists and technicians will be fully integrated into Evotec's Hamburg operations to realise cost synergies and efficiency improvements.
"Through the acquisition of CCS, Evotec strengthens its cell culture capabilities and gains access to a growing base of customers using cell- based assays in their drug discovery processes. CCS' experience and technologies for large scale cell production are a perfect fit with Evotec's screening and in vitro pharmacology activities", said Dr Mario Polywka, Chief Operating Officer of Evotec AG.
Dr Oliver Wehmeier, CEO of CCS, adds: "We are excited to join forces with Evotec. Our portfolio of custom products perfectly complements Evotec's integrated service offering. In return, our customers, who have relied on CCS' products and services for many years, will gain access to Evotec's broad range of screening technologies, which add a tremendous value to the assay-ready cells and cell-based reagents we provide."
Transaction structure reflects value potential
The purchase price consists of a cash consideration of €1.15 m and an earn-out component targeting €1.05 m in cash. The earn-out component will become due following one year after the acquisition and depends upon the achievement of certain revenue targets.
Despite cash requirements for the transaction and integration of approximately €1.2 m in 2012, Evotec confirms its cash guidance for the full year of more than €60 m.
ABOUT CELL CULTURE SERVICE GMBH (CCS)
CCS is a supplier of custom cells and cell based reagents for the drug discovery process. The service provider generates tailor-made recombinant cell lines and develops cell based assays for various applications in pharmaceutical and biotechnology R&D. For HTS campaigns CCS produces bulk amounts of assay-ready recombinant, non-recombinant or transiently transfected mammalian cells and preparations derived thereof. Due to its semi-automated and scalable but flexible processes and its integrated quality management system, CCS provides cells of high value which meet individual customer needs. Working from its headquarter in Hamburg, Germany or its subsidiary in Monmouth Junction, New Jersey, CCS supports most of the big pharmaceutical and major biotechnology companies in Europe and the USA in their effort to discover new therapeutics. www.cellcultureservice.com
ABOUT EVOTEC AG
Evotec is a drug discovery alliance and development partnership company focused on rapidly progressing innovative product approaches with leading pharmaceutical and biotechnology companies. We operate worldwide providing the highest quality stand-alone and integrated drug discovery solutions, covering all activities from target-to-clinic. The Company has established a unique position by assembling top-class scientific experts and integrating state-of-the-art technologies as well as substantial experience and expertise in key therapeutic areas including neuroscience, pain, metabolic diseases as well as oncology and inflammation. Evotec has long-term discovery alliances with partners including Bayer, Boehringer Ingelheim, CHDI, Genentech, MedImmune/Astra Zeneca, Novartis, Ono Pharmaceutical and Roche. In addition, the Company has existing development partnerships and product candidates both in clinical and preclinical development. These include a strategic alliance with Roche for the development of subtype-selective NMDA receptor antagonists for use in treatment-resistant depression as well as other partnerships with Boehringer Ingelheim, MedImmune and with Andromeda (Teva) in the field of diabetes. For additional information please go to www.evotec.com.
FORWARD-LOOKING STATEMENTS: Information set forth in this press release contains forward-looking statements, which involve a number of risks and uncertainties. The forward-looking statements contained herein represent the judgement of Evotec as of the date of this report. Such forward-looking statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.