Sanofi (SNY) entered into exclusive negotiations with Evotec AG to accelerate infectious disease research and development through a new open innovation platform near Lyon, France. Shares drifted marginally higher intraday.
The company said it will license most of its infectious disease research and early-stage development portfolio and transfer its infectious disease research unit to Evotec, according to a statement. More than 150 scientists within the Evotec platform will be active in this field.
Sanofi will pay Evotec an initial, one-time, cash upfront payment of EUR60 million ($74.5 million) and provide significant further long-term funding to ensure support and progression of the portfolio.
Sanofi will retain certain option rights on the development, manufacturing, and commercialization of anti-infective products and will continue to be involved in infectious disease through its vaccines research and development and its global health programs.
Under the agreement, Evotec will integrate Sanofi’s infectious disease research unit, which includes more than 100 employees, into its global drug discovery and development operations.