Evotec AG (EVTCY) announced that it has entered into a research collaboration agreement with Manchester-based C4X Discovery Holdings plc (commonly known as C4XD) for the development of Orexin-1 selective inhibitors discovered through C4XD’s NMR technology.
Under the collaboration, C4XD’s NMR technology will be combined with Evotec’s drug discovery platform to develop several series of Orexin-1 selective inhibitors. Financial details of the agreement were not disclosed.
We note that activation of the orexin-1 receptor in the brain is related to stress-related addictive disorders while activation of the orexin-2 receptor leads to biorhythms and wakefulness. Evotec said that selective compounds that inhibit the orexin-1 pathway may be used as potential treatments for addiction, while avoiding the inhibition of orexin-2, which would help to evade the sedative effects associated with the inhibition of orexin-2.
Our Take
We are encouraged by Evotec’s collaboration with C4XD. Through this partnership, Evotec will be able to combine its know-how in pharmacology and computational and medicinal chemistry with C4XD’s NMR-based technology for solving the dynamic 3D structures of a wide range of biomolecules. This arrangement will facilitate both companies in the innovation and development of treatments for addictive disorders.
We note that Evotec has been on a collaboration spree over the past few years. The company already has collaboration agreements with several companies for the development of its candidates, including Roche (RHHBY) for the development of EVT302 (Alzheimer's disease) and Janssen, a subsidiary of Johnson & Johnson (JNJ), for the development of EVT100 series (depression). EVT302 is under phase IIb development with results expected in early 2015.
Meanwhile, Evotec is expected to ink another important deal soon. In Dec 2014, Evotec entered into exclusive negotiations with Sanofi (SNY) on a multi-component strategic alliance for the next five years. The agreement is slated to be signed in the first half of 2015. If the transaction is successfully closed, it will act as a major boost for Evotec in the field of drug discovery and development and benefit the company both financially and strategically.
We expect investor focus to remain on further updates from the company.
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