Abu Dhabi’s Mubadala Investment Company and Novo Holdings, a leading international life science investor, said they will invest €250 million ($295 million) in Evotec, a Germany-based drug development company.
Evotec said that it resolved a capital increase from its authorised capital without pre-emptive rights against cash, adding that it will issue a total of 11,478,298 new shares to Mubadala and Novo Holdings.
In this private placement capital increase, Mubadala Investment Company, a sovereign investor with an entrepreneurial mind-set and a long-standing history of strategic investments in the healthcare sector, will invest € 200 million to subscribe for approx.5.6 % of outstanding Evotec shares.
Evotec’s existing shareholder Novo Holdings A/S also will invest € 50 million to support Evotec’s accelerated growth ambition and to reinforce its ownership in the company of approximately 11% of outstanding shares.
The shares will be issued at a price of € 21.7802 per share, which represents a 2.5% discount to the five-day volume weighted average price (VWAP) of € 22.3387 prior to the Xetra closing auction on October 12, 2020. After the registration of the capital increase in the commercial register, Evotec’s share capital will increase to €163,375,791, or 163,375,791 ordinary bearer shares.
Evotec has developed a unique strategy to become the global leading platform company for the modality-agnostic development of innovative first-in-class and best-in-class therapeutic approaches resulting in a large co-owned pipeline.
Evotec has continuously expanded its operations internationally with more than 3,400 employees at 14 global sites in Germany, US, France, Italy, UK, and Austria. By leveraging its proprietary platforms within a comprehensive network of high-value partnerships, Evotec aims to improve global access to more precise and effective medicines. Future investments will accelerate Evotec’s underlying business strategy and enable the company’s next strategic growth phase.
Dr Werner Lanthaler, Chief Executive Officer of Evotec, said: “This investment allows us to further accelerate our strategy to create the world-leading “R&D Autobahn to Cures” from discovery to commercial manufacturing.”
Enno Spillner, Chief Financial Officer of Evotec, added: “With this commitment by existing and new investors, our liquidity reserves will total more than € 500 million. Thus this placement will generate a net cash position of more than € 150 million (excluding IFRS 16) with Evotec’s net-debt leverage turning negative (excluding IFRS 16).
“Our equity ratio will strengthen to above 50 %. While maintaining our business outlook for 2020, the very positive impact of this transaction on our balance sheet structure will increase our flexibility and makes us even better prepared for our accelerated global expansion steps.”
Camilla Macapili Languille, Head of Pharma & Medtech at Mubadala Investment Company, said: “We are excited to partner with Evotec, who we see as one of the global pioneers for drug discovery innovation.
“We have been impressed by the quality and depth of Evotec’s management team, the company’s distinctive business model, their proprietary technological platforms and the unique role they play in the rapidly growing universe of pharmaceutical & biotech R&D – an area whose importance is acutely highlighted in the current environment. We will work with the company and its shareholders to support Evotec’s strategic growth both through this investment and our extensive institutional network.”
Anders Bendsen Spohr, Senior Partner Principal Investments at Novo Holdings, noted: “As a long-time investor in Evotec, we are very proud of the company’s accomplishments to date. We are strong believers in Evotec’s business model and modality-agnostic approach to drug discovery, and look forward to continue to support the company in its next strategic growth phase through this additional capital commitment and our broad life science network.” – TradeArabia News Service