Halozyme's $2 Billion Bid for Evotec: A Strategic Move for Growth and Diversification

Halozyme Therapeutics, a leading biopharmaceutical company, has made a bold move to acquire Germany-based Evotec for approximately $2 billion. This strategic acquisition, valued at €11.00 per share, represents a 109% premium over Evotec's undisturbed share price before Triton Partners' initial accumulation and a 77% premium over its last three-month volume-weighted average price. The proposed all-cash transaction aims to create a global innovative services company with a unique set of differentiated technologies, a deep pipeline, and a best-in-class industry team.

Halozyme's CEO, Helen Torley, believes that the combination of Halozyme and Evotec would diversify and extend Halozyme's revenue and EBITDA growth well into the next decade and beyond. The acquisition would bring together best-in-class innovative technologies and both organizations' capabilities, creating a pan U.S. / European innovative services company. With increased scale, a deep pipeline, and a diversified offering, the merged entity would become a highly attractive strategic partner to the biopharmaceutical industry, providing an opportunity to accelerate the discovery and development of medicines that will improve patients' outcomes.

The proposed acquisition would create a global innovative services company with several key components:

1. **Innovation Driven Platform**: Evotec's drug discovery platform would become the Center of Excellence within Halozyme for all drug discovery business. This integration would complement Halozyme's existing ENHANZE® drug delivery technology for large volume biologics.
2. **Expanded Biologic Platforms**: Just – Evotec Biologics, a fast-growing, best-in-class biologic manufacturing platform, would complement Halozyme's ENHANZE® drug delivery technology. This combination would enable the expansion of the worldwide supply of biologic products more affordably.
3. **Accelerated Growth**: Halozyme's strong cash generation would support continued reinvestment into Evotec's earlier stage programs and new technologies. Additionally, Halozyme's proven track record of translating innovative technologies into businesses that improve patients' outcomes would result in an opportunity to accelerate the development of new treatments.
4. **Compelling Financial Upside**: The combination would be expected to meaningfully diversify, scale, and extend Halozyme's revenue and EBITDA well into the next decade and later. The diversified technology offerings of the proposed combination would create opportunities to expand programs with a broader set of partners.



Halozyme's significant cash reserves and strong balance sheet ensure that the transaction would not be subject to any financing contingency and would meet the requirements of BaFin in relation to financing of an offer. Centerview Partners is serving as Halozyme's financial advisor, and Weil, Gotshal & Manges LLP is acting as legal advisor.

In conclusion, Halozyme's proposed acquisition of Evotec is a strategic move that aligns with its long-term growth strategy. By combining Evotec's drug discovery platform and biologic manufacturing capabilities with Halozyme's ENHANZE® drug delivery technology, the merged entity would create a global innovative services company with a unique set of differentiated technologies, a deep pipeline, and a best-in-class industry team. This acquisition would diversify and extend Halozyme's revenue and EBITDA growth, making it a highly attractive strategic partner to the biopharmaceutical industry. With increased scale, a deep pipeline, and a diversified offering, Halozyme would be well-positioned to accelerate the discovery and development of new treatments, ultimately improving patients' outcomes.