Halozyme withdraws Evotec offer after refusal and confirms strong growth prospects

Galozim Therapeutics, Inc. (NASDAQ:HALO) shares rose on Friday after the company announced it was withdrawing its acquisition offer. Evotek SE (NASDAQ:EVO) at €11 ($11.44) per share in cash, implying a fully diluted shareholder value of €2.0 billion.

The move follows lengthy engagement with Evotec, which has expressed a desire to remain independent, Halozyme said.

In addition, Halozyme has confirmed its strong business outlook, with its 2024 guidance signaling continued growth.

The company expects revenue to be between $970 billion and $1.02 billion ($1.003 billion) and adjusted EBITDA to be between $595 million and $625 million, representing strong double-digit growth.

Halozyme is confident in its ability to execute on its strategy, which aims to have ten approved products with ENHANZE by 2025 and $1 billion in revenue by 2027.

Read also: US Business Activity Soars to 31-Month High in November: Small-Cap Rally, Dow Tops 44,000

Helen Thorley, CEO of Halozyme, 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 engage with Evotec management, including numerous requests for meetings, were unsuccessful, leading to the decision to withdraw the offer.

“A company representative has publicly stated that its goal is to remain an independent company,” Helen Thorley, Halozyme’s president and CEO, said of Evotec, adding that “our multiple requests for a meeting have not been accepted.”

“Evotec has taken note of the statement from Halozyme Therapeutics Inc. dated 22 November, stating that it had withdrawn its non-binding offer to acquire Evotec for €11 per share in cash,” Evotec said in its response.

Price Action: HALO shares were trading 6.21% higher at $48.54 at last check on Friday, while EVO shares were down 18.8% at $4.345.

Photo via Shutterstock

Read more:

“ACTIVE INVESTORS’ SECRET WEAPON” Upgrade your stock market game with the #1 “news & everything else” trading tool: Benzinga Pro. Click here to start your 14-day trial now!

Get the latest stock analysis from Benzinga?

This article Halozyme withdrew Evotec’s offer after refusal and confirmed the prospects for strong growth. It originally appeared on Benzinga.com.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.