BIOTECH company Evotec received its second dose of good news in a month with a £2.3m milestone payment from a pharmaceutical company.

Evotec, which is based in Germany, employs about 200 people at its laboratory at Milton Park, near Abingdon. It received the payment from another German firm, Boehringer Ingelheim, for finding a possible drug to treat cardio-metabolic illnesses such as diabetes.

Earlier this month, Evotec announced that it has extended its current research collaboration with Ono Pharmaceutical and initiated a new discovery collaboration.

The good news follows a series cost-cutting measures, which included nine job losses at its Oxfordshire lab, and disappointing trial results for Evotec's anti-smoking drug.

Welcoming the milestone payment, chief executive Dr Werner Lanthaler said: "This is the second milestone that we have achieved in 2009 and further demonstrates the success of our collaboration.

"We are looking forward to continuing our collaboration into 2010 and beyond and achieving further milestones as we progress several projects towards the clinic.”

Under the agreement with Boehring Ingelheim, Evotec could receive royalties if new drugs reach the market.