Oxford Asymmetry merges with Evotec

UK biotech group Oxford Asymmetry International is to tie the knot with German rival Evotec in a merger which values the British company at £316 million.

The pair said today that the deal combined "world leaders in biology and chemistry" to create a one-stop shop for drug discovery and development services.

Dr Edwin Moses, executive chairman of Oxford Asymmetry, said the combination would create a "European powerhouse in drug discovery and development services".

Dr Karsten Henco, chief executive of Evotec, said: "The combination of two world leaders in biology and chemistry with complementary expertise in drug discovery and development will make us the partner of choice for pharmaceutical and biotechnology companies worldwide."

The deal, expected to go through in November, values each Oxford share at 722p.

Shares in the group jumped 98.5p to 670p in early trading today.

Oxford Asymmetry was founded eight years ago with four staff and now employs more than 250 people.

It is the first time a German company in the sector has bought a British biotech firm.

Mr Moses will become president of the company while Dr Henco takes over the role of chief executive and chief scientific officer.