Chemistry company Evotec OAI has announced a £1.7m one-year deal with Swiss biotech company Serono.

Scientists from Evotech OAI at Milton Park, near Abingdon, and in Hamburg will find compounds which can be used for Serono's drug discovery projects.

As well as the £1.7m fee, Evotec OAI will receive milestone payments if its compounds are patented and enter clinical trials.

The collaboration with Serono, dating from October 1998, has grown into a long-term discovery and development partnership.