Halozyme Therapeutics (NASDAQ: HALO) has pulled its proposal to buy Evotec SE (NASDAQ: EVO) for 2 billion euros ($2.09 billion) as the German drug developer was unwilling to engage in discussions, the U.S. firm said on Friday.
Shares of Halozyme rose about 8% to $49.24, while the U.S.-listed stock of Evotec tumbled 17.20% to $4.43.
“To date, Evotec has been unwilling to engage with us to explore a potential combination, and a company spokesperson has publicly commented that its goal is to remain an independent company,” said Halozyme CEO Helen Torley.
It also said requests to meet and engage with Iris Löw-Friedrich, chairwoman of Evotec’s supervisory board, were not accepted.
Evotec continues to have strong conviction in the company’s standalone strategy, which is expected to accelerate growth, strengthen its long-term profitability, and deliver significant value to shareholders, it said in a statement.
Halozyme NASDAQ: HALO) stock has fallen more than 15% since November 14 when the company disclosed its offer to buy Evotec (NASDAQ: EVO) at 11 euros per share.
Due to the large amount of cash required and the need to obtain a considerable amount of long-term debt to complete the deal, investors had looked warily at the attractiveness of the bid for Halozyme, said Benchmark analyst Robert Wasserman.
Triton was also exploring a potential buyout of Evotec, Bloomberg News reported earlier this month, after the private equity firm confirmed a stake of nearly 10% in the company.
Evotec collaborates with biotech companies through research alliances and partnerships to help with drug development.
Shares of the German company have fallen close to 60% so far this year, as it comes under pressure from a weak market for drug development and research.
($1 = 0.9587 euros)
