Abu Dhabi’s Mubadala invests $235m in Germany’s Evotec

Abu Dhabi’s Mubadala Investment Company will pump €200m ($235m) to acquire 5.6 per cent of outstanding shares of German drug development partnership firm Evotec.

Meanwhile, Evotec’s existing shareholder Novo Holdings will also invest EUR50m to underscore the former’s accelerated growth and reinforce its ownership in the company.

The shares will be issued at a price of €21.7802 per share, which represents a 2.5 per cent discount to the five-day volume weighted average price of €22.3387 prior to the Xetra closing auction on October 12.

Evotec has expanded its operations globally, with more than 3,400 employees at 14 global sites across Germany, the US, France, Italy, UK, and Austria. The company aims to improve its global access to more precise and effective medicines by leveraging its proprietary platforms. Furthermore, future investments will accelerate Evotec’s underlying business strategy and enable the company’s next strategic growth phase.

The company is evaluating investment opportunities such as acceleration of the company’s global infrastructure built-up strategy in biologics, investments in prediction technologies for biologics, as well as in novel cell and gene therapies in multiple indications. It is also assessing investments in greater access to patient derived material and data for precision medicine processes in drug discovery and development, among others.

Dr Werner Lanthaler, chief executive officer of Evotec, commented: “We welcome Mubadala to our group of strategic investors. There is no reason for us to slow down our mission in spite of the ongoing pandemic. We can and want to grow even faster and see a lot of positive momentum in our business strategy. We are delighted that Mubadala has chosen to invest in Evotec with a long-term view. Also, we are pleased to see that Novo Holdings continues to support our strategy.”

“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 and 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,” noted Camilla Macapili Languille, head of Pharma and Medtech at Mubadala.

Headquartered in Abu Dhabi and with offices in London, Rio de Janeiro, Moscow, New York, San Francisco and Beijing, Mubadala’s $232bn portfolio spans six continents with interests in multiple sectors and asset classes.