Halozyme Therapeutics, Inc. (NASDAQ:HALO) saw its shares rise on Friday after the company announced it was withdrawing its takeover proposal Evotec SE (NASDAQ:EVO) for 11 euros ($11.44) per share in cash, implying a fully diluted share value of 2.0 billion euros.
This move comes after lengthy efforts to engage with Evotec, which expressed its desire to remain independent, Halozyme said.
In addition, Halozyme confirmed its strong business outlook, with 2024 guidance signaling continued growth.
The company expects revenue between $970 million and $1.02 billion ($1.003 billion) and an adjusted EBITDA range of $595 million to $625 million, reflecting significant double-digit growth.
Halozyme is confident in its ability to execute on its strategy, with the goal of achieving ten approved products with ENHANZE by 2025 and $1 billion in royalty revenue by 2027.
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Halozyme CEO Helen Torley explained that while the merger would have created a leading global pharmaceutical services company, Evotec was not open to further discussions.
Halozyme’s attempts to contact Evotec leadership, including multiple requests for meetings, were unsuccessful, leading to the decision to withdraw the offer.
“A company spokesperson has publicly stated that its goal is to remain an independent company,” Helen Torley, president and CEO of Halozyme, said of Evotec, adding that “our multiple requests to meet were not accepted ”.
“Evotec has taken note of the statement from Halozyme Therapeutics Inc. on November 22, stating that it has withdrawn its non-binding proposal to acquire Evotec for €11.00 per share in cash,” Evotec said in a response.
Price promotion: HALO shares are trading 6.21% higher at $48.54 at last check on Friday, while EVO shares are down 18.8% to $4.345.
Photo via Shutterstock
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This article Halozyme Withdraws Bid for Evotec After Rejection, Reaffirms Strong Growth Prospects originally appeared on Benzinga.com
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