Evotec AG and Sanofi have entered into exclusive negotiations for Evotec to accelerate infectious disease research and development through a new open innovation platform near Lyon, France.

In support of this platform, Sanofi will license most of its infectious disease research and early-stage development portfolio and transfer its infectious disease research unit to Evotec. The transaction excludes the vaccine R&D unit and related projects. Evotec will combine its drug discovery and development expertise with these new assets and experts, committing to the expansion and acceleration of anti-infective drug discovery and development through open collaborations with other pharmaceutical and biotechnology companies, foundations, academia, and government agencies. 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 €60 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. The transferred positions will be associated with specific commitments of employment for 5 years and will continue to be based near Lyon, taking advantage of the location's scientific and medical ecosystems.

Evotec will expand its existing long-term initiatives focused on innovation to fight infectious diseases including the maintenance of a portfolio of projects aimed at diseases affecting the developing world. The focus of drug discovery will at the outset be on new mode-of-action antimicrobials.

Dr Werner Lanthaler, chief executive officer of Evotec, said: "Since the acquisition of Euprotec (UK) in 2014, Evotec has had a significant strategic interest and demonstrated expertise in infectious diseases research, with an ambition to grow and become the drug discovery and development leader in this space together with its partners. We are pleased to be working and expanding our strategic relationship with Sanofi, which has a long history in providing novel anti-infective agents to markets globally. Finding a way to motivate more public funding and academic initiatives for the progress of novel anti-infectives on Evotecs' platform will be a key success factor for this initiative."

"Sanofi has a long and established history in the fight against infectious diseases, and we remain committed to addressing global health challenges through our development efforts and vaccines," says Dr Elias Zerhouni, president global R&D for Sanofi.  "Research in the field of anti-infectives is an area where building critical mass through partnering is particularly important. This new French based open innovation center will benefit from the high quality science ecosystem. Evotec is a trusted partner in drug discovery and has the ambition and capacity to become a real leader in the fight against infectious diseases."

This transaction is expected to close in the first half of 2018, subject to finalization of definitive agreements and completion of the appropriate social process. This project will be conducted in full respect of social dialogue with employee's representatives.