Halozyme Therapeutics Plans Acquisition of Evotec

Investing.com — Halozyme Therapeutics (NASDAQ: HALO) announced on Thursday its plans to acquire German drug developer Evotec SE ADR (NASDAQ: EVO) in a deal valued at approximately 2 billion euros ($2.10 billion), aimed at enhancing its capabilities in drug discovery and development.

The proposed acquisition includes Halozyme offering 11 euros per share for Evotec, signifying a 27.5% premium to the company’s most recent closing price.

Following the announcement, US-listed shares of Evotec rose by nearly 7%, while Halozyme's shares declined by 4.5% in premarket trading on Friday. In Frankfurt, Evotec’s shares jumped by more than 20%.

Jefferies analysts, led by Benjamin Jackson, suggested that Evotec's differentiated biologics continuous manufacturing platform appears to be a key driver of Halozyme's interest.

Separately, RBC Capital Markets analysts remarked that although Evotec’s shares are currently depressed, there is “significant value within the business that can be unlocked.” They noted that their Outperform rating reflects the potential for significant long-term profitable growth in both divisions, highlighting Evotec's impressive competitive differentiation and high customer retention rates, along with validating deals with major pharma companies.

Earlier in the week, private equity firm Triton was reportedly considering a bid for Evotec after acquiring nearly a 10% stake in the company. Novo Holdings, the parent company of Novo Nordisk (NYSE: NVO), and Mubadala Investment are also significant shareholders in Evotec.

Helen Torley, Halozyme's CEO, emphasized that “the combination of Halozyme and Evotec would diversify and extend Halozyme revenue and EBITDA growth and durability well into the next decade and beyond.” Bloomberg News first reported Halozyme's acquisition plans earlier on Thursday.