NEW YORK (GenomeWeb News) – Evotec today announced it has signed a definitive agreement to purchase Kinaxo Biotechnologies for up to €16 million ($22 million) in a cash and stock deal.
As part of the acquisition, Evotec will pay €3 million in cash and issue about 2.6 million shares of its stock to Kinaxo. Parts of the shares are held in escrow and will be released "subject to certain company events and representations," Evotec said. The company also will pay up to €4 million based on certain milestones being achieved.
The deal is expected to close in April.
Based in Munich, Germany, Kinaxo is a service firm employing chemical proteomics in support of small-molecule drug development. In a statement, Evotec, headquartered in Hamburg, Germany, said the deal enables it "to take earlier educated decisions on drug efficacy, safety, and response in patients."
Services provided by Kinaxo include its Cellular Target Profiling for identification of molecular targets of compounds with unknown modes of action; KinAffinity for determining the cellular selectivity of kinase inhibitors; and PhosphoScout for gaining information on drug modes of action in vivo and how they respond to drug treatments.
Last month, Kinaxo announced a collaboration with AstraZeneca to support its oncology program.
"Through the acquisition of Kinaxo, Evotec gains access to a highly innovative technology base in drug discovery, which allows us to integrate a powerful prediction platform with our leading drug discovery expertise," Werner Lanthaler, CEO of Evotec, said in a statement.
During the summer, Evotec acquired biopharmaceutical discovery and development company DeveloGen for up to €14 million.