Evotec (NASDAQ: EVO), the German drug and development company, has entered into a technology development partnership with Novo Nordisk (NYSE: NVO) to support clinical and commercial manufacturing of stem cell-based therapies, Evotec said on Thursday.
Evotec will receive funding for technology development activities in Germany and Italy, research and development funding, an undisclosed upfront payment, and possible milestone and royalty payments, it added.
In exchange, Novo Nordisk has the option to obtain exclusive rights to utilize the collaboration results.
Stem cell-based therapies at Novo Nordisk are still at an exploratory level within diabetes and cardiovascular diseases and the partnership with Evotec is a way to exploit that potential further, Sydbank analysts said.
The partnership might relate to Evotec’s beta-cell implant program QR-Beta, with the initial upfront sum being a prepayment for capacity and manpower, plus cost margin, according to Warburg Research analyst Christian Ehmann.
“In our estimate, both companies will try to develop a cell-based diabetes cure,” he added.
Shares in Evotec (NASDAQ: EVO) were up 5.6% at 0753 GMT. Novo Nordisk (NYSE: NVO) shares were up 1.5%.
(Source: ReutersReuters)
