Evotec shares surge 20% on Halozyme's 2 billion euro takeover bid

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), to enhance its capabilities in drug discovery and development.

The proposed acquisition involves Halozyme offering 11 euros per share for Evotec, representing 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 Friday.

Evotec’s shares in Frankfurt jumped more than 20%.

“Just Evotec, Evotec's differentiated biologics continuous manufacturing platform, appears to be a key driver of Halozyme's interest, in our view,” Jefferies analysts led by Benjamin Jackson commented.

Separately, RBC Capital Markets analysts said while Evotec’s shares are depressed, there is “significant value within the business that can be unlocked.”

“Our Outperform rating reflects the significant long-term profitable growth available in both divisions, in which Evotec has built impressive competitive differentiation that has been reflected in high rates of customer retention, and highly-validating deals with major pharma companies,” they noted.

The company’s European shares fell more than 51% in 2024.

Earlier in the week, private equity firm Triton was reportedly considering a bid for Evotec after revealing it had acquired nearly a 10% stake in the company.

Novo Holdings, the parent company of Novo Nordisk (NYSE:NVO), and Mubadala Investment are among Evotec’s other significant shareholders.

"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, Halozyme's CEO.

Bloomberg News first reported Halozyme's acquisition plans earlier on Thursday.