GERMAN biotech group Evotec, which employs more than 200 people in Oxfordshire, is to buy US drug company Renovis for £80m.

The news follows the German company's £31.5m sale of two pilot plants, lab and office space at Milton Park, near Abingdon, in a move which will see 150 employees transfer to Aptuit, based in Greenwich, Connecticut.

The Milton Park deal means the Oxfordshire business will split into two, with more than half still owned by Evotec, which took over Oxford Asymmetry in 2000. The business was based on research at Oxford University by Prof Steve Davies, on chemically identical molecules which could be either right or left-handed.

Aptuit focuses on streamlining drug development for biotechnology and pharmaceutical companies. Following the purchase, it will have 2,680 employees in 18 labs across the world, including India.

All Evotec's chemical development employees will be kept on, with the same compensation and benefit packages. Evotec senior vice president Paul McGee will continue in his existing role at Milton Park, working for Aptuit.

Aptuit vice-chairman Frank J. Wright said: "We have been impressed with the depth of talent and expertise."

Dr Mario Polywka, of Evotec, said: "Aptuit are looking to invest and grow the business. When one business splits into two, it leads to job creation in areas like finance and IT. Some people might get nervous and might not want to stay, but overall there will be more jobs. Scientific operations will not change at all, but I think it is inevitable that some jobs are created elsewhere."

He added: "This was the origin of Oxford Asymmetry and it's a bit of a sad day for me because it's what we were associated with for nearly 20 years.

But he said: "We are still neighbours and we are all friends."

Aptuit has signed a deal to supply drugs for Evotec's clinical trials.

The Renovis deal means Evotec now owns a lab in South San Francisco, California, which will be a 'center of excellence' for innovative discovery projects for inflammatory diseases, pain and other related diseases. It will also lead Evotec's systems-based regenerative medicine research in progress under contracts with the NIH, the ETH Zurich and other academic institutes.

Following the Renovis deal, Evotec will have a cash pile of £88m, even without the Milton Park sale proceeds, and five potential drugs in clinical trials. It will now seek a listing on the US stockmarket Nasdaq.