Aptuit Buys Evotec Unit

Aptuit Inc., a Greenwich, Conn.-based provider of streamlining and support services for drug developers, has completed its acquisition of the chemical development business of Evotec AG (Frankfurt: EVT). The deal was valued at approximately EUR46.4 million in cash, and included Evotec's capabilities in process R&D, custom preparation, analytical development, pilot plant manufacturing and formulation. Aptuit intends to retain all of the businesses 210 employees, who are split between Oxford and Glasgow, UK. Aptuit is backed by Welsh, Carson, Anderson & Stowe and Temasek Holdings.

PRESS RELEASE
Aptuit, Inc. today announced that it has completed the acquisition of the Chemical and Pharmaceutical Development (CPD) business of Evotec, which integrates an active pharmaceutical ingredient (API) facility in Oxford, England and a well-established and recently-expanded parenteral (injectable vials) fill/finish facility in Glasgow, Scotland into Aptuit's global network. The integration of these development and small scale manufacturing facilities in Europe completes a unique global API supply chain where small scale development takes place in the US and Europe with commercial scale undertaken in new state of the art facilities in India. Aptuit brings this service to its current client base of more than 750 pharmaceutical innovators.

“Over the past 18 months we've assembled by strategic acquisitions the core competencies that are key to reducing the time and cost burdens of drug development for our customers, and that also build on our commitment to operate an efficient, integrated global network. This particular acquisition is an important building block for Aptuit as we move toward completing that network,” said Michael A. Griffith, Chief Executive Officer and Founder of Aptuit. “As the overall life science industry evolves, we are continuously evaluating the ways in which the drug development process must change and improve, and executing forward-looking deals and partnerships that are beneficial to our customers now and for the life of their products.”

Griffith continued, “The commitment to be a global force and provide full service in the US, Europe and Asia requires foresight and discipline in anticipating the needs of the market, the ability to attract, train and retain talent and build an infrastructure that best meets those needs of our many and diverse clients continues to be the focus of our attention as we constantly strive for improvements in the drug development process. We also recognize that technology and the ability to capture, store, analyze and present data in paperless business transactions will be a prerequisite for companies like ours in the future and we continue to actively invest in those resources across our network.

In addition, Paul McGee (formerly Evotec's Senior Vice President of Chemical Development in Oxford, England), who will head the business in Oxford commented, “I am truly impressed by the positive response and interest by existing and prospective clients in the capabilities Aptuit is assembling to improve the drug development process and we have already made several proposals to clients jointly with other parts of the Aptuit network and I am also delighted to continue working on the exciting portfolio of products Evotec is developing through the long term supply agreement established between the two companies.”

Since the acquisition of Evotec's CPD business was announced, Aptuit has worked to align:

The CPD business with its existing solid-state chemistry, formulation and drug product manufacturing businesses, with a critical part of which is Aptuit's solid-state chemistry center of excellence in West Lafayette (Indiana);
The small molecule API development labs, kilo labs and pilot plants in Europe into Aptuit's global API network with existing operations in Harrisonville (Missouri), Kansas City (Missouri) and Hyderabad (India), positioning Aptuit to provide drug substance development, scale-up and manufacturing capabilities in all three major pharmaceutical geographies; and
The CPD business' clinical scale parenteral fill/finish, including two lyophilization suites, with Aptuit's existing fill/finish and lyophilization capabilities in Kansas City, establishing substantial capacity in one of the fastest growing and most lively sectors of drug development.
“Positioning our Chemical and Pharmaceutical Development business supports the needs of our biotechnology and pharmaceutical innovator clients in this sector by giving them access to a mature suite of capabilities within a company that can support specific needs across the drug development continuum,” said J