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ARTICLE | Company News

Evotec off on J&J deal update, lowered guidance

December 14, 2013 1:29 AM UTC

Evotec AG (Xetra:EVT) slipped EUR 0.47 (12%) to EUR 3.47 on Friday after the company said it will not receive a $6 million preclinical milestone from partner Johnson & Johnson (NYSE:JNJ) under a 2012 deal for depressive disorders. As a result, Evotec said it will record a charge of up to EUR 22 million ($30.2 million) and lowered its 2013 guidance. The company now expects 2013 revenues of EUR 84-EUR 86 million ($115.2-$117.9 million), down from its previous guidance of EUR 90-EUR 100 million ($123.4-$137.2 million).

Under the 2012 deal, J&J's Janssen Pharmaceuticals Inc. subsidiary has exclusive, worldwide rights to Evotec's portfolio of NMDA receptor NR2B subtype ( GRIN2B; NR2B) antagonists for depression. Evotec said preclinical studies of the lead compound "did not justify the planned immediate development progress." The companies said Janssen is evaluating the deal, but declined to disclose details. ...