Drug delivery specialist Halozyme Therapeutics has launched a $2.1 billion (€2 billion) takeover bid for Evotec, a leading drug discovery CRO. The move comes just days after reports surfaced of private equity firm Triton Partners, which holds a near 10% stake, exploring its own acquisition of Evotec. This flurry of activity follows a significant downturn in Evotec’s share price over the past year.
Halozyme’s offer represents a 27.5% premium over Evotec’s recent closing price, reflecting the depressed valuation of the German CRO. Halozyme, known for its Enhanze drug delivery technology, is seeking to diversify its revenue base ahead of the 2027 expiration of key Enhanze patents. While Halozyme anticipates continued royalties from Enhanze partnerships well into the next decade, the company is proactively pursuing growth opportunities beyond its flagship technology.
The acquisition of Evotec would provide Halozyme with immediate access to diversified revenue streams and a robust drug discovery engine. Halozyme envisions Evotec’s drug discovery platform as a “center of excellence,” complementing its existing Enhanze technology and creating a vertically integrated drug development powerhouse. Furthermore, Evotec’s manufacturing capabilities would synergistically enhance Halozyme’s offerings.
Halozyme’s strong cash flow would enable continued investment in Evotec’s early-stage pipeline and cutting-edge technologies, driving innovation and accelerating the development of novel therapeutics. Evotec’s existing network of partnered programs would further bolster Halozyme’s portfolio and expand its reach across multiple therapeutic areas.
The news of Halozyme’s bid sent Evotec’s share price soaring nearly 20% in early European trading, although it remains slightly below the offer price. The potential for a bidding war, with Triton or other parties entering the fray, could further drive up Evotec’s valuation. Halozyme emphasizes that its offer represents a substantial 109% premium over Evotec’s pre-Triton investment share price, underscoring the perceived value of the German CRO. This bold move by Halozyme signals a strategic shift towards a more diversified and integrated drug development model, positioning the company for long-term growth and market leadership.
