Aptuit, Inc. and Evotec AG (Frankfurt Stock Exchange: EVT), today
announced that Aptuit has agreed to acquire the Chemical and
Pharmaceutical Development (CPD) business of Evotec, which is
comprised of an active pharmaceutical ingredient (API) facility in
Oxford, England and a well-established and recently-expanded
parenteral (injectable vials) fill/finish facility in Glasgow,
Scotland. The acquisition provides Aptuit with an established European
presence in API development services with more than 80 clients that
Aptuit expects to generate revenue in excess of $40 million for the
year ended December 31, 2007.
"This acquisition continues Aptuit's momentum as we assemble a
complete suite of drug development services in all three major
geographies in Europe, North America and Asia," said Michael A.
Griffith, Chief Executive Officer and Founder of Aptuit. "We will
integrate the highly-regarded scientific staff and two pilot plants in
Oxford and state-of-the-art parenteral fill/finish capabilities in
Glasgow into our existing global network. We will then leverage those
capabilities to drive our commercial-scale capabilities in India,
providing our clients with world-class drug development services from
discovery to commercialization. That we can consummate a cross-border
transaction of this magnitude in the current market downturn is due to
the strength of our equity partners at Welsh, Carson, Anderson & Stowe
and Temasek."
As part of the acquisition, Aptuit has also entered into a
long-term supply agreement with Evotec pursuant to which it will
provide both API and the full range of Aptuit's development services
in support of Evotec's proprietary pharmaceutical pipeline. "The deal
we announced today will position our Chemical and Pharmaceutical
Development business within an environment where it can thrive, and
with a global company focused on streamlining and supporting the drug
development process for biotechnology and pharmaceutical innovators,"
said Jorn Aldag, President & Chief Executive Officer of Evotec.
The CPD business provides small molecule API development labs,
kilo labs and pilot plants in Europe. This European operation becomes
a natural component of Aptuit's global API network with existing
operations in Harrisonville (Missouri), Kansas City (Missouri) and
Hyderabad (India) and positions Aptuit to provide drug substance
development, scale-up and manufacturing capabilities in all three
major pharmaceutical geographies. Because the drug development process
requires a dependable supply of bioavailable and stable API that can
withstand the rigors of scale up during synthesis and manufacture, a
supply of robust API is the first important component of a
comprehensive drug development strategy. To supplement its existing
capabilities, Aptuit is well advanced in its previously announced $15
million capital investment to upgrade the Harrisonville facility and
build process development and kilo labs in Kansas City.
The CPD business provides clinical scale parenteral fill/finish
including two lyophilization suites. When added to Aptuit's existing
fill/finish and lyophilization suite in Kansas City, Aptuit will have
substantial capacity in one of the fastest growing and most lively
sectors of drug development. Aptuit's existing parenteral business
continues to enjoy demand in excess of capacity and a significant
backlog of business. "The addition of the CPD capabilities will allow
Aptuit to better satisfy existing customer needs and also to pursue
substantial new opportunities in the European market," stated Frank J.
Wright, Vice Chairman and Founder of Aptuit. "Indeed, our current
marketing efforts have already identified several Aptuit clients who
are interested in placing work within the Glasgow facility."
The production of clinical trial parenteral vials in Glasgow will
flow naturally into Aptuit's six global Clinical Packaging & Logistics
(CP&L) facilities. This continues the promise of an integrated
offering and enhances Aptuit's suite of drug development services,
particularly with respect to Aptuit's Bathgate facility located just a
short distance from the CPD business' Glasgow facility, and Aptuit's
Deeside facility in Wales.
Aptuit will integrate the CPD business with its existing
solid-state chemistry, formulation and drug product manufacturing
business, with emphasis on Aptuit's solid-state chemistry center of
excellence in West Lafayette (Indiana). Understanding and managing the
solid state of a small molecule drug substance during formulated
product manufacture is critical to ensure that patients receive
medicine that is bioavailable and safe. Following the selection of
well-characterized API, Aptuit can then formulate and manufacture in
either of Aptuit's existing manufacturing facilities in Edinburgh
(Scotland) or Kansas City (Missouri).
The acquisition is also expected to accelerate growth of Aptuit
Laurus, Aptuit's recently announced joint venture in India. Aptuit
Laurus has world-class facilities in Bangalore, Hyderabad and Vizag in
India. "We view this as an excellent strategic fit for Aptuit and for
Aptuit Laurus," commented Dr. Satyanarayana Chava, CEO of Aptuit
Laurus and a member of Aptuit's Board of Managers. "Aptuit's
newly-expanded API presence and client base will provide a natural
stream of opportunities for Aptuit Laurus to offer a seamless and
cost-effective transfer to commercial scale manufacturing."
Aptuit intends to retain all of the employees of the CPD business
and will continue to honor their compensation and benefit packages. In
addition, Paul McGee (currently Evotec's Senior Vice President of
Chemical Development in Oxford, England) and Dr. Sandy Allan
(currently Evotec's Senior Vice President of Formulation Sciences in
Glasgow, Scotland) will continue in their existing roles within
Aptuit. "Throughout this process, we have been impressed with the
depth of talent and expertise resident within the CPD business,"
continued Mr. Wright, "We are pleased that we have been able to
preserve this key value driver for the CPD franchise."
The acquisition is expected to close within 75 days and is not
subject to financing or other contingencies.
About Evotec
Evotec is a leader in the discovery and development of novel small
molecule drugs. Both through its own discovery programs and through
research collaborations, the Company is generating the highest quality
research results to its partners in the pharmaceutical and
biotechnology industries. In proprietary projects, Evotec specializes
in finding new treatments for diseases of the Central Nervous System.
Evotec has three programs in clinical development: EVT 201, a partial
positive allosteric modulator (pPAM) of the GABA(A) receptor complex
for the treatment of insomnia, EVT 101, a subtype selective NMDA
receptor antagonist for the treatment of Alzheimer's disease and/or
pain, and EVT 302, a MAO-B inhibitor in development for smoking
cessation.
www.evotec.com
About Aptuit
Aptuit is a global company focused on streamlining and supporting
the drug development process for biotechnology and pharmaceutical
innovators. The company was founded by a group of industry experts
with extensive market experience who have a track record of building a
similar, highly successful company through acquisitions and
investment. Aptuit provides a comprehensive suite of product
development services and competencies to more than 600 biotechnology
and large, fully integrated pharmaceutical innovators worldwide.
Following the acquisition of the CPD business, Aptuit will have 2,680
employees across 18 global facilities, including the
recently-announced formation of Aptuit Laurus (India). Aptuit's
mission is to engineer a better drug development process, and is
partnered with Welsh, Carson, Anderson & Stowe, one of the world's
largest private equity investors. For more information about Aptuit,
please visit www.aptuit.com.
