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Mubadala Investment Company is pumping 200 million euros ($236 million) into Evotec SE, a German pharmaceutical company that specialises in drug discovery solutions.
Evotec SE said that it resolved a capital increase from its authorised capital without pre-emptive rights against cash. Evotec will issue a total of 11,478,298 new shares to Mubadala Investment Company and Novo Holdings A/S, increasing Evotec’s cash reserves by €250 million ($295 million) in total, state news agency WAM reported.
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 approx. 11.0 percent of outstanding shares.
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. This investment allows us to further accelerate our strategy to create the world-leading "R&D Autobahn to Cures" from discovery to commercial manufacturing."
Evotec has continuously expanded its operations internationally with more than 3,400 employees at 14 global sites in Germany, USA, 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.
"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 m (excluding IFRS 16) with Evotec’s net-debt leverage turning negative (excluding IFRS 16). Our equity ratio will strengthen to above 50 percent. 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," Enno Spillner, Chief Financial Officer of Evotec, said.
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."
(Writing by Seban Scaria; editing by Daniel Luiz)
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