Published : 3 weeks ago, on 22/11/2024

By Sriparna Roy

(Reuters) -Halozyme Therapeutics has pulled its proposal to buy Evotec SE for 2 billion euros ($2.09 billion) as the German drug developer was unwilling to engage in discussions, the U.S. firm said on Friday.

Shares of Halozyme rose 4.70% to $47.80, while the U.S.-listed stock of Evotec tumbled 19.63% to $4.30.

“To date, Evotec has been unwilling to engage with us to explore a potential combination, and a company spokesperson has publicly commented that its goal is to remain an independent company,” said Halozyme CEO Helen Torley.

It also said requests to meet and engage with Iris Löw-Friedrich, chairwoman of Evotec’s supervisory board, were not accepted.

Evotec continues to have strong conviction in the company’s standalone strategy, which is expected to accelerate growth, strengthen its long-term profitability and deliver significant value to shareholders, it said in a statement.

Halozyme’s stock has fallen more than 15% since on Nov. 14 when the company disclosed its offer to buy Evotec at 11 euros per share.

Due to the large amount of cash required and the need to obtain a considerable amount of long-term debt to complete the deal, investors had looked warily at the attractiveness of the bid for Halozyme, said Benchmark analyst Robert Wasserman.

Triton was also exploring a potential buyout of Evotec, Bloomberg News reported earlier this month, after the private-equity firm confirmed a stake of nearly 10% in the company.

Evotec collaborates with biotech companies through research alliances and partnerships to help with drug development.

Shares of the German company have fallen close to 60% so far this year, as it comes under pressure from a weak market for drug development and research.

($1 = 0.9587 euros)

(Reporting by Sriparna Roy in Bengaluru; Editing by Devika Syamnath and Sriraj Kalluvila)