Evotec and Sanofi confirmed on Tuesday plans to collaborate in exploring and developing new cancer drugs over a five-year period. The companies aim to sign an agreement early next year.
The alliance would be one of the biggest between a German biotech company and established pharmaceutical firm.
Evotec and Sanofi, Europe’s third-largest pharmaceutical company with €33 billion ($41 billion) in annual sales, plan to combine their cancer research efforts in a number of concrete projects.
In addition to providing services in preclinical research for the pharmaceutical company, Evotec will take on more than 200 Sanofi employees in Toulouse, where it will establish a new site. The company currently employs more than 600 scientists.
As part of the joint venture, Sanofi will guarantee at least €250 million in payments to Evotec over a five-year period and outsource a portion of its early product development activities.