Halozyme Therapeutics has submitted a non-binding proposal to acquire Germany-based Evotec for €11 per share in cash, valuing the company at a fully diluted equity value of €2bn.
This offer represents a 109% premium over Evotec’s share price on 15 October 2024, and a 77% premium over its three-month average price.
The acquisition would combine Halozyme’s advanced drug delivery technology with Evotec’s drug discovery platform.
The proposed combination will create a global company with a set of advanced technologies and a large pipeline of drugs.
California-based Halozyme believes the proposed acquisition would create a global innovative services firm with several key advantages.
Evotec’s drug discovery platform would become the ‘Center of Excellence’ for all Halozyme’s drug discovery initiatives.
Additionally, Just – Evotec Biologics, a biologic manufacturing platform, would complement Halozyme’s ENHANZE drug delivery technology, enhancing the global supply of biologics at more affordable prices.
Halozyme’s strong cash generation would also allow continued investment in Evotec’s earlier-stage programmes and emerging technologies, accelerating the development of new treatments.
Furthermore, the combination is expected to significantly diversify, extend and scale Halozyme’s revenue and EBITDA, creating opportunities to expand programmes with a broader range of partners well into the next decade.
Halozyme president and CEO Helen Torley said: “The combination of Halozyme and Evotec would diversify and extend Halozyme revenue and EBITDA growth and durability well into the next decade and beyond.
“I am excited about the potential to bring together best-in-class innovative technologies and both organisations’ capabilities to create a pan US / European innovative services company. With increased scale, a deep pipeline, and a diversified offering, we would be a highly attractive strategic partner to the biopharma industry.”
Evotec said that it plans to review the proposal, determine the next steps, and update the market as required by law.
Nasdaq-listed Halozyme said that it has substantial cash reserves and a strong balance sheet, ensuring the deal will not be subject to any financing contingency.
The deal is also expected to meet BaFin’s requirements regarding the financing of the offer.
Centerview Partners is serving as Halozyme’s financial adviser, while Weil, Gotshal & Manges is providing legal counsel for the transaction.
In September, Evotec joined forces with Novo Nordisk to develop advanced technologies that support cell therapies.
