Halozyme provides update on proposal to combine with Evotec

Halozyme Therapeutics (HALO) provided an update on its non-binding proposal to acquire Evotec SE (EVO) for EUR 11.00 per share in cash, implying a fully diluted equity value of EUR 2.0 billion. In a presentation posted on its investor relations website, Halozyme highlights how its proposed combination with Evotec would create a leading global innovative pharma services company that would deliver significant value to all stakeholders. The presentation highlights include: The acquisition of Evotec would be a logical extension and diversification of Halozyme’s business, and is aligned with Halozyme’s M&A criteria: De-risked business; Structurally similar business model; Strong biopharma partnerships: Potential for durable long-term revenue growth. The combination would create a unique B2B global innovative pharma services company with complementary and leverageable platforms and cross-selling opportunities:Drug discovery; Continuous biologics manufacturing; Drug delivery. The combination would meaningfully diversify, scale and extend Halozyme’s revenue and adjusted EBITDA well into the next decade and beyond: Establishes a diversified pharma services portfolio with approximately $2 billion in annual revenue projected in 2025. Enhances long-term growth profile. Delivers robust long-term margin profile. The all-cash transaction would be supported by an existing lender group with a clear path to less than 2x net leverage within two years post-close. Halozyme has significant cash reserves on-hand and a strong balance sheet with cash projected to be more than $800 million at year-end 2024.The transaction would not be subject to a financing condition.