Evotec AG has acquired Galapagos NV’s Compound Focus, Inc., the compound management business of the Galapagos company BioFocus, for $14.7 million in cash, with an additional $3.2 million in potential milestones.

Compound Focus, Inc. is based in South San Francisco and is a leader in small molecule compound management services. The company’s technologies are focused on automated storage and custom design solutions for small molecule drugs. This acquisition augments Evotec’s early drug discovery services, adds to its existing compound management offering, and adds revenues.

Dr. Werner Lanthaler, chief executive officer of Evotec, said, “This acquisition will substantially improve our ability to support our alliance partners in developing and managing their compound libraries. The link to our industry leading screening platform further strengthens our hit identification capabilities. In addition, the profitable revenues shown by Compound Focus over the last years will further enhance our earnings profile going forward.”

Onno van de Stolpe, chief executive officer of Galapagos, said, “This transaction enables us to concentrate on what we do best in BioFocus and Argenta, providing top-class drug discovery solutions needed to deliver molecules for our customers. Compound management is not strategic to our offering. We are pleased to have found a good home for Compound Focus and wish them continued success as part of Evotec.”