Evotec has received a milestone payment of €1.5 million from Boehringer Ingelheim from the companies' research alliance. The milestone was for the transition of a pain molecule into preclinical development.
Dr. Mario Polywka, chief operating officer of Evotec, commented, "This is the 18th milestone achieved as part of our alliance with Boehringer Ingelheim and represents an important transition of a compound into preclinical development. We are pleased the collaborative efforts of our teams continue to drive value for both our organizations."
Evotec also announced that it will close its Chemistry Operations in Thane, India. All chemistry efforts will now be performed at its Abingdon (UK) facility, due to an increasing requirement to operate closer to the principal R&D laboratories of its major customers. All project work in Thane will be finished at the end of September and Evotec (India) Private Ltd will be wound down from then. Evotec will lay off 120 people and take a one-time impairment charge of as much as €4 m in 3Q13.
Dr. Polywka remarked, "Evotec were due to relocate its Indian chemistry operations in June 2014. During the due diligence in finding a new facility and because of growing customer requirements for European-based activities, we came to the conclusion to exit our operations in India completely. Through this realignment we will be able to most efficiently serve our customers, utilize our UK chemistry resources and capabilities and also realize some cost savings. Unfortunately the impact is that we must say goodbye to a first-class work force in Thane that has so ably supported our customers over the last four years. I would like to express our sincere gratitude to these employees and wish them all the best for the future."