Germany-based Evotec AG and Leo Pharma have announced that they have entered into a cooperation agreement aimed at developing new therapies for the treatment of skin pathologies. The deal will be in force for two years, subject to extension upon agreement between the parties. The agreement benefits from Evotec’s expertise in the drug discovery area, combined to Leo Pharma’s specific expertise in skin pathologies.
Evotec’s shares (Frankfurt), however, have had a totally unexpected reaction to the Hamburg-based biotech’s managers. Shares, indeed, have decreased by over 17% today. There are still many doubts about the reason for this, however many people agree that it is due to a Bloomberg interview to a manager, who has announced that Evotec in the near future will heavily invest on research, to further develop its pipeline. This could have raised much concern in some short-term oriented investors.