Sernova, Evotec Join Forces To Develop ‘Functional Cure’ For Diabetes

Sernova Corp and Evotec SE (NASDAQ:EVO) have announced an exclusive global strategic partnership to develop cell therapy treatment for insulin-dependent diabetes.
The companies will leverage their respective technologies and scientific expertise to develop an implantable iPSC-based (induced pluripotent stem cells) beta cell replacement therapy.
The partnership provides Sernova a global exclusive option to license Evotec’s iPSC-based beta cells to treat both type 1 and type 2 diabetes.
Also Read: Why Are Evotec Shares Trading Lower On Friday?
In addition to entering into the collaboration agreement, Evotec has made a strategic equity investment of €15 million and will further invest €5 million.
Concurrently, Evotec acquired 12.9 million shares at C$1.57 per share for gross proceeds to Sernova of C$20.3 million.
In addition, Evotec will acquire a further 2.7 million shares at C$2.50 per share for gross proceeds of $6.8 million.
Evotec’s Chief Scientific Officer, Cord Dohrmann, will join Sernova’s Board of Directors.
Price Action: EVO shares are trading at $12.61 during the market session on the last check Tuesday.