Aptuit To Acquire CPD Business Of Evotec AG, And Enter Into Long-Term Collaborative Supply Agreement For Evotec's Growing Portfolio Of Proprietary Pharmaceuticals
Aptuit, Inc. and Evotec AG, recently 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 $40M 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 Jörn 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 GABAA 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.
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.
SOURCE: Aptuit, Inc. and Evotec AG