Aptuit to Acquire CPD Business of Evotec AG
- and enter into long-term collaborative supply agreement
for Evotec’s growing portfolio of proprietary
pharmaceuticals
European active pharmaceutical ingredient (API) capability
completes a global API network and positions Aptuit to transfer to
commercial scale in India; Parenteral fill/finish capabilities in
UK adds to existing capacity in US to meet growing client demand
for small-scale sterile formulation and manufacture
GREENWICH, Conn., September 10, 2007 – 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 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. 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.
Contact
Frank J. Wright, Vice Chairman, Aptuit, Inc.
(203) 660-6000, frank.wright@aptuit.com
or
Joanna Crosby, Director, Marketing, Aptuit, Inc.
+44 1244 845700, joanna.crosby@aptuit.com
or
Krystle Ficco, Feinstein Kean Healthcare
(617) 761-6702, krystle.ficco@fkhealth.com
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