Halozyme Therapeutics has withdrawn its $2.1 billion offer to buy Evotec after the German company “has been unwilling to engage with us to explore a potential combination,” Halozyme president and CEO Helen Torley said in a Nov. 22 release.
The withdrawal also comes after an Evotec spokesperson publicly commented that the company’s goal was to remain independent, Torley said.
Mid-morning Friday, Evotec’s share price was down about 18% to $4.36.
Halozyme leaders tried to meet with the chairwoman of Evotec’s supervisory board, Iris Löw-Friedrich, M.D., Ph.D., but were rebuffed, according to the release.
They then made a formal proposal to CEO Christian Wojczewski, Ph.D., but it soon became “evident that there is no interest at this time on the part of Evotec's Supervisory and Management Boards to engage constructively with Halozyme and explore a potential transaction,” Torley explained.
In a statement, Evotec said its leadership has "strong conviction" its current standalone strategy will "accelerate growth, strengthen the long-term profitability of the company and deliver significant value to shareholders."
Evotec’s share price has plummeted 60% this year, which prompted private equity group Triton Partners to raise its stake in the firm and consider a buyout bid.
Halozyme beat Triton to the punch, putting in a bid for around 2 billion euros ($2.1 billion) on Nov. 15.
Torley said at the time that buying Evotec would “diversify and extend Halozyme revenue and EBITDA growth and durability well into the next decade and beyond.”
Halozyme’s interest in Evotec followed its 2022 acquisition of auto-injector specialist Antares Pharma for about $960 million. Halozyme’s business is built on Enhanze, a drug delivery technology that enables the subcutaneous administration of products including Johnson & Johnson’s Darzalex. Enhanze’s composition of matter patent expires in 2027.