#United States #San Diego #Acquisition #Halozyme #Evotec

Halozyme Withdraws Acquisition Proposal for Evotec

Halozyme Therapeutics, Inc., a prominent player in the biopharmaceutical sector, has made headlines by pulling back its non-binding proposal to acquire Evotec SE. This decision comes after what Halozyme describes as Evotec's refusal to engage in meaningful discussions regarding the potential merger.

Background on the Proposal

On November 22, 2024, Halozyme announced its interest in acquiring Evotec at a price of €11.00 per share, equating to a total equity value of approximately €2 billion. Halozyme's motivation for this acquisition was to create a leading global pharma services company, a move that they believed would be advantageous for shareholders, patients, and employees alike. Helen Torley, the President and CEO of Halozyme, expressed confidence in the benefits that such a merger could yield.

Despite the clear vision presented by Halozyme, Evotec's management showed little willingness to explore the opportunity. Halozyme initially took steps to discuss potential collaboration, even reaching out for informal talks with a member of Evotec's Supervisory Board. However, these attempts were not reciprocated, leading Halozyme to escalate its approach.

Withdrawal of the Proposal

In her statement, Torley lamented that, despite multiple requests for serious discussions with Evotec, the company opted not to engage. She noted that Evotec is committed to remaining independent, which surfaced during communications. The culmination of these unfruitful interactions led Halozyme to officially retract its offer.

Furthermore, Torley highlighted that Halozyme had conducted extensive external due diligence in the months leading up to the proposal. This research underscored their strong belief in the potential synergies that could result from a merger with Evotec.

Focus on Future Goals

While the acquisition attempt has faced a setback, Halozyme remains steadfast in its mission to enhance patient treatment experiences. The company is optimistic about its existing growth trajectory and the prospects for its innovative drug delivery technology, ENHANZE®. Halozyme has an ambitious goal, projecting ten approved products using ENHANZE® by 2025 and targets for $1 billion in royalty revenues by 2027. Their financial outlook for 2024 is also strong, estimating revenues between $970 to $1,020 million and an adjusted EBITDA of $595 to $625 million.

Conclusion

Halozyme's decision to withdraw its acquisition proposal serves as a pivotal moment in the ongoing landscape of pharmaceutical partnerships and mergers. As the company continues to advance its objectives independently, stakeholders eagerly await how it will navigate future opportunities within the industry. The acquisition might have fallen through, but Halozyme remains focused on delivering value to its patients and investors.

For continuing updates on Halozyme’s strategic directions and innovations, interested parties are encouraged to visit their official website and corporate communications channels.