Evotec bids $475 mill for Oxford Asymmetry

UK-based Oxford Asymmetry International is to be acquired by Germanbiotechnology company Evotec BioSystems AG, in a deal worth L316 million ($474.7 million). OAI has previously said it was in merger talks (Marketletter July 24). The Evotec offer will be made on the basis of 0.1287 of a new Evotec share for each OAI share held. Based on the closing price of 91 euros ($84.89) per Evotec share on July 28, the offer values each OAI share at L7.22 ($10.94), and represents a premium of around 46% to the middle market price of 494 pence per share.

The rationale for the merger, according to a statement from Lehman Brothers which is acting on behalf of Evotec, is the combination of world leaders in biology and chemistry to create a "one-stop shop" for value-added drug discovery and development services. Moreover, this is the "partner of choice for drug discovery and development companies to overcome the bottleneck created by the genomics revolution."

The merger is said by Lehman to bring together two complementary management teams and the executive of the enlarged Evotec/OAI group will reflect continuity and existing strengths. From OAI, executive chairman Edwin Moses will become president, Mario Polywka chief operating officer and Anthony Baxter will be responsible for research activities in chemistry, while Evotec's Karsen Henco will take on the roles of chief executive and chief scientific officer, Joern Aldag will become chief financial officer and Timm-H Jessen will take responsibility for research in screening and biology.