Develogen

About Develogen

Develogen AG was a biopharmaceutical firm established in 1996 in Göttingen, Germany, focused on discovering and developing novel therapeutics for metabolic and endocrine diseases. The company directed its efforts towards key drivers in the development of diabetes and obesity, such as insulin resistance and the loss of insulin-producing beta cells. Over its history, Develogen secured $74.6 million in funding across seven rounds, with its initial funding in July 1996 and its final grant of $500,000 in February 2010. The company was supported by 14 institutional investors, including Omega Funds, Nomura, and Phase4 Partners.

Develogen's pipeline included several promising programs. One of its most advanced leads, DG770, was designed to trigger beta-cell proliferation and neogenesis. The company also had a small molecule inhibitor program targeting insulin resistance for type 2 diabetes and a growth factor program aimed at beta-cell regeneration for both type 1 and type 2 diabetes. Additionally, Develogen was developing DG3173 (Somatoprim), a somatostatin analogue for treating acromegaly, carcinoid tumors, and diabetic retinopathy, which had completed a Phase 1 clinical trial. The company's business model revolved around forming strategic alliances and partnerships with larger pharmaceutical companies. A significant collaboration was an integrated discovery alliance with Boehringer Ingelheim to develop small molecules for treating insulin resistance, which included potential milestone payments of up to €237 million. Another key partnership was with Andromeda (a subsidiary of Teva) for the development of DiaPep277, a synthetic peptide immunomodulator for type 1 diabetes, which was in Phase III clinical development.

In July 2010, Develogen AG was acquired by Evotec AG for approximately $17.7 million (€14 million) in shares, plus potential future earn-out payments. This acquisition was a strategic move for Evotec to enhance its capabilities in metabolic disease biology and expand its portfolio of high-value partnerships. Following the acquisition, Develogen's CEO, Dr. Cord Dohrmann, who had been with the company since 1999 and was instrumental in its growth, was appointed as the Chief Scientific Officer of Evotec. Dr. Dohrmann has a background in biomedical research, having worked at institutions like the Max-Planck Institute and Harvard Medical School before joining Develogen.