Evotec enters 3-year deal with Novartis

Germany's Evotec has started a three-year research collaboration with Swiss drug major Novartis to identify and develop novel small-molecule therapeutics.

Under the terms of the agreement, Evotec will apply its drug discovery platform and disease biology expertise to advance a program against a target, nominated by Novartis, to preclinical development and the drug major will then have the responsibility for all clinical development activities, manufacture and commercialization of the compounds. In return, Evotec is eligible for an upfront payment, research funding and milestone payments that could exceed $28.0 million, along with royalties on sales of any marketed products resulting from the collaboration. Other details were not disclosed

Chief executive Jorn Aldag said: "we are delighted that Novartis has chosen to collaborate with Evotec. Novartis' decision to work with us is further recognition of our track record in advancing compounds into the clinic. We are excited to be leveraging our drug discovery expertise with such a world-class company."