SAN DIEGO – Halozyme Therapeutics , Inc. (NASDAQ: NASDAQ:) announced today its intention to purchase Evotec SE (NASDAQ: EVO) for €11.00 per share, an all-cash deal valued at €2.0 billion. The transaction aims to establish a global pharma services leader, significantly diversifying and expanding Halozyme’s business scope and financial prospects.
The proposed acquisition is expected to leverage Halozyme’s existing technologies and Evotec’s platforms to create a business with a broadened revenue base and enhanced growth potential. Halozyme’s ENHANZE® drug delivery technology, together with Evotec’s drug discovery and biologics manufacturing capabilities, is anticipated to provide cross-selling opportunities and foster long-term growth.
Halozyme projects approximately $2 billion in annual revenue for the combined entity by 2025, with a 15-20%+ compound annual growth rate (CAGR) from 2023A to 2028E. The company also forecasts a pro forma adjusted EBITDA margin between 45-50% by 2026, driven by the diversification and synergy of the two companies’ services.
The funding strategy for the transaction involves Halozyme’s cash reserves, projected to exceed $800 million by the end of 2024, and new debt, with the company maintaining a net leverage goal of less than 2x within two years following the closure of the deal. Halozyme’s financial advisor, Centerview Partners, and legal advisor, Weil, Gotshal & Manges LLP, are assisting in the transaction.
This strategic move is aligned with Halozyme’s merger and acquisition criteria, emphasizing a de-risked business model, a structurally similar business approach, and strong biopharma partnerships. It is designed to fortify Halozyme’s position in the pharmaceutical services industry by combining its drug delivery technology with Evotec’s continuous biologics manufacturing and drug discovery platforms.
The information presented is based on a press release statement, and the potential transaction remains subject to further negotiations and regulatory approvals. Halozyme’s forward-looking statements reflect the company’s expectations for future financial performance and the anticipated benefits of the acquisition, although actual results may vary due to market conditions and other factors.
In other recent news, Halozyme Therapeutics has proposed a $2 billion acquisition of pharmaceutical company Evotec SE. Piper Sandler, maintaining a neutral rating on Halozyme, perceives this potential merger as a strategic move…
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