On Thursday, Halozyme Therapeutics (NASDAQ: HALO) said it has proposed to buy German drug developer Evotec (NASDAQ: EVO) for about 2 billion euros ($2.10 billion), to bulk up its drug discovery and development portfolio.
Halozyme intends to purchase all the shares of Evotec at 11 euros per share, representing a premium of 27.5% to Evotec’s last close price.
U.S.-listed shares of Evotec were up 6.3%, while Halozyme stock fell 5.1% in aftermarket trade.
Earlier this week private equity firm Triton was also reportedly exploring a potential buyout of Evotec, after it confirmed a close to 10% stake in the company.
Evotec’s other major shareholders are Novo Nordisk (NYSE: NVO) parent Novo Holdings and Mubadala Investment.
“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, chief executive officer of Halozyme.
Evotec (NASDAQ: EVO) shares have fallen about 60% this year as revenues continue to slump due to weakness in the clinical research organization business market environment.
The company collaborates with biotech companies through research alliances and partnerships to help with drug development.
Halozyme’s plan to acquire Evotec was first reported by Bloomberg News earlier on Thursday.
($1 = 0.9504 euros)
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
