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Germany’s Evotec Gets Takeover Interest From Halozyme

(Bloomberg)

(Bloomberg) -- Evotec SE has attracted takeover interest from Nasdaq-listed biotech firm Halozyme Therapeutics Inc. for a deal that would value the German drug developer at €2 billion ($2.1 billion). 

Halozyme said in a statement confirming an earlier report by Bloomberg News that it has submitted a non-binding proposal to acquire Evotec for €11 per share. That would represent a roughly 27% premium to Evotec’s closing price on Thursday.

Halozyme Chief Executive Officer Helen Torley said in the statement that acquiring Evotec would extend her company’s growth into the next decade and beyond. “With increased scale, a deep pipeline, and a diversified offering, we would be a highly attractive strategic partner to the biopharma industry,” she said.

Evotec said in a separate statement that would carefully analyze the offer and decide on its next steps.

American depositary receipts of Evotec, after rising as much as as much as 19% Thursday, closed up 12% in New York, giving the company a market value of about $1.8 billion. San Diego, California-based Halozyme’s shares fell 7.9%, giving it a market value of about $6.9 billion.

Shares of Evotec had fallen about 59% this year, bucking the 15% gain in Germany’s benchmark DAX index. Private equity firm Triton Partners recently revealed it has built up a stake in Evotec and has been considering a takeover bid, Bloomberg News has reported.

Evotec develops drug discovery programs with biotech and pharmaceutical companies in areas including cardiovascular disease, oncology and immunology.

CEO Christian Wojczewski, who took his position at Evotec in July, said in an earnings call this month that his job is to rebuild trust and provide clarity and reliability for investors. The previous CEO Werner Lanthaler stepped down for personal reasons. The company later said Lanthaler had failed to report stock trades on time, adding the lapse was unrelated to his exit. 

--With assistance from Michael Hytha.

(Updates with Halozyme statement in second paragraph.)

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