German drug firm Evotec AG (EVOTF.PK, EVTCY.PK) Wednesday said it has entered into a second multi-year, multi-target drug discovery collaboration with Brussels, Belgium-based UCB in the field of immunology. No financial details of the deal were disclosed.
As per the deal, Evotec will identify small molecules against a selected number of targets by using its drug discovery expertise and technologies. The molecules will be further optimized and progressed through lead optimization to a pre-clinical candidate.
Evotec said it will receive research funding based on resource allocated over the projects. The company will also be further rewarded based on the achievement of goals of the research collaboration with early stage discovery, preclinical and clinical milestones.
In addition, Evotec will receive royalties based on net sales of any approved drugs from the collaboration.
In early July, Evotec had entered into a three-year integrated drug discovery collaboration with UCB to identify small molecule modulators of priority biological targets, selected by UCB.
Werner Lanthaler, Chief Executive Officer of Evotec stated, "This integrated drug discovery deal showcases our broad target class expertise coupled with our industry leading platform."
"Evotec is the ideal partner to provide the resource bandwidth and drug-hunting expertise to complement our internal efforts to progress this strategically important program," Ismail Kola, President, UCB NewMedicines said.
In March this year, Evotec had reported a profit for fiscal 2010, marking its first in 18 years, as revenues improved 29 percent and expenses reduced. The increase stemmed from a strong performance of discovery alliances as well as significant milestone achievements, in addition to stable license and upfront income and additional revenues from the acquisition of biopharmaceutical company DeveloGen.
In Frankfurt's XETRA, Evotec shares closed Tuesday's regular trading at 2.11 euros, down 5.36 percent.
In US, EVTCY.PK ended on Tuesday at $5.53.
In Brussels, UCB shares are trading down 1.28 percent at 32.21 euros.
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