Evotec, Sanofi In Talks For Major Multi-Component Strategic Collaboration

(RTTNews) - Evotec AG said Tuesday it has entered into exclusive negotiations with Sanofi (SNY) on a major multi-component strategic alliance over the next five years.

According to Evotec, the collaboration will comprise three major strategic initiatives all focused on improving innovation effectiveness in the drug discovery and pre-clinical development space and cement Evotec's position as the leading drug discovery collaboration partner to the Pharma and biotech industry as well as academia.

Evotec said the collaboration will result in a minimum guaranteed commitment from Sanofi to Evotec of €250 million over the next five years, including a sizeable upfront cash payment that will be defined in the agreement. It will include a co-development agreement with associated upfront, development, regulatory and sales milestones as well as royalties benefiting both parties. This multi-component transaction is expected to be signed in the first half of 2015, subject to finalization of definitive agreements and completion of the appropriate social process.

The alliance, upon completion, will cover three major strategic initiatives:

(i) Pipeline-building collaboration with initial focus on oncology, and a French academic bridge programme;

(ii) Outsourcing alliance including acquisition of Sanofi's drug discovery operations in Toulouse to build an European centre of excellence for compound management and drug discovery services, and strategic service agreement in compound management;

(iii) and pioneering open innovation by offering combined libraries.