Halozyme Therapeutics, Inc. confirmed it has submitted a non-binding proposal to the Management Board and Supervisory Board of Evotec SE to acquire Evotec for €11.00 per share in cash, implying a fully diluted equity value of €2.0 billion. The proposal represents a premium of 109% to Evotec's undisturbed share price on October 15, 2024, the day before Triton Partners' initial accumulation of Evotec shares, and a premium of 77% to Evotec's last three-month volume weighted average price on October 15, 2024.
"The combination of Halozyme and Evotec would diversify and extend Halozyme revenue and EBITDA growth and durability well into the next decade and beyond," said Helen Torley, president and chief executive officer of Halozyme. "I am excited about the potential to bring together best-in-class innovative technologies and both organizations' capabilities to create a pan U.S. / 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. This in turn would provide a remarkable opportunity to accelerate the discovery and development of medicines that will improve patients' outcomes."
Halozyme believes that the proposed combination would create a global innovative services company with:
- Innovation Driven Platform: Evotec's drug discovery platform would become the Center of Excellence within Halozyme for all drug discovery business.
- Expanded Biologic Platforms: Just – Evotec Biologics, a fast-growing, best-in-class biologic manufacturing platform with the potential to expand the worldwide supply of biologic products more affordably, would complement Halozyme's ENHANZE® drug delivery technology for large volume biologics.
- Accelerated Growth: Halozyme's strong cash generation would support continued reinvestment into Evotec's earlier stage programs and new technologies. Additionally, Halozyme's proven track record of translating innovative technologies into businesses that improve patients' outcomes would result in an opportunity to accelerate the development of new treatments.
- Compelling Financial Upside: The combination would be expected to meaningfully diversify, scale and extend Halozyme revenue and EBITDA well into the next decade and later. The diversified technology offerings of the proposed combination would create opportunities to expand programs with a broader set of partners.
Halozyme has significant cash reserves on hand and a strong balance sheet. Closing of the transaction would not be subject to any financing contingency and would meet the requirements of BaFin in relation to the financing of an offer.
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