Halozyme Provides Update on Non-Binding Proposal to Combine with Evotec
Halozyme (NASDAQ: HALO) has provided an update on its non-binding proposal to acquire Evotec SE for €11.00 per share in cash, valuing the company at €2.0 billion. The proposed combination would create a leading global innovative pharma services company with projected annual revenue of $2 billion in 2025. The acquisition would combine Evotec's drug discovery and biologics manufacturing capabilities with Halozyme's ENHANZE® drug delivery technology. The all-cash transaction would be funded through cash reserves and new debt, with projected net leverage less than 2x within two years post-close. Halozyme expects to have over $800 million in cash by year-end 2024, maintaining a 15-20%+ revenue CAGR through 2023-2028 and achieving 45-50% adjusted EBITDA margin by 2026.
Halozyme (NASDAQ: HALO) ha fornito un aggiornamento sulla sua proposta non vincolante di acquisire Evotec SE per €11,00 per azione in contanti, valutando la società a €2,0 miliardi. La combinazione proposta creerebbe una società globale leader nei servizi farmaceutici innovativi con un fatturato annuale previsto di 2 miliardi di dollari nel 2025. L'acquisizione unirebbe le capacità di scoperta dei farmaci e di produzione biologica di Evotec con la tecnologia di somministrazione dei farmaci ENHANZE® di Halozyme. L'operazione interamente in contanti sarebbe finanziata attraverso riserve liquide e nuovo debito, con un rapporto di indebitamento netto previsto inferiore a 2x entro due anni dalla chiusura. Halozyme prevede di avere oltre 800 milioni di dollari in contanti entro la fine del 2024, mantenendo un CAGR del fatturato del 15-20%+ dal 2023 al 2028 e raggiungendo un margine EBITDA rettificato del 45-50% entro il 2026.
Halozyme (NASDAQ: HALO) ha proporcionado una actualización sobre su propuesta no vinculante de adquirir Evotec SE por €11,00 por acción en efectivo, valorando a la empresa en €2,0 mil millones. La combinación propuesta crearía una compañía farmacéutica innovadora global líder en servicios con ingresos anuales proyectados de $2 mil millones en 2025. La adquisición combinaría las capacidades de descubrimiento de medicamentos y fabricación biológica de Evotec con la tecnología de entrega de medicamentos ENHANZE® de Halozyme. La transacción totalmente en efectivo se financiaría a través de reservas de efectivo y nueva deuda, con un apalancamiento neto proyectado menor a 2x dentro de dos años después del cierre. Halozyme espera tener más de $800 millones en efectivo para finales de 2024, manteniendo un CAGR de ingresos del 15-20%+ de 2023 a 2028 y alcanzando un margen EBITDA ajustado del 45-50% para 2026.
Halozyme (NASDAQ: HALO)는 Evotec SE를 주당 €11.00에 현금으로 인수하겠다는 비구속적인 제안에 대한 업데이트를 제공했습니다. 이로 인해 회사 가치는 €2.0 billion입니다. 제안된 조합은 세계적인 혁신 제약 서비스 회사를 만들 것이며, 2025년에 연간 20억 달러의 매출이 예상됩니다. 이번 인수는 Evotec의 약물 발견 및 생물 제조 능력과 Halozyme의 ENHANZE® 약물 전달 기술을 결합할 것입니다. 현금만으로 이루어진 거래는 현금 유보금과 새로운 부채를 통해 자금을 조달하며, 마감 후 2년 이내에 예상 순 레버리지는 2배 미만이 될 것입니다. Halozyme은 2024년 연말까지 8억 달러 이상의 현금을 보유할 것으로 예상하며, 2023-2028년 동안 15-20%+의 매출 CAGR을 유지하고 2026년까지 45-50%의 조정 EBITDA 마진을 달성할 것입니다.
Halozyme (NASDAQ: HALO) a fourni une mise à jour sur sa proposition non contraignante d'acquérir Evotec SE pour 11,00 € par action en espèces, valorisant l'entreprise à 2,0 milliards d'euros. La combinaison proposée créerait une entreprise mondiale leader dans les services pharmaceutiques innovants avec un chiffre d'affaires annuel prévu de 2 milliards de dollars en 2025. L'acquisition combinerait les capacités de découverte de médicaments et de fabrication biologique d'Evotec avec la technologie de délivrance de médicaments ENHANZE® de Halozyme. La transaction entièrement en espèces serait financée par des réserves de trésorerie et de nouvelles dettes, avec un levier net projeté inférieur à 2x dans les deux ans suivant la clôture. Halozyme prévoit d'avoir plus de 800 millions de dollars en espèces d'ici la fin de 2024, en maintenant un taux de croissance annuel composé du chiffre d'affaires de 15-20%+ de 2023 à 2028 et en atteignant une marge EBITDA ajustée de 45-50% d'ici 2026.
Halozyme (NASDAQ: HALO) hat ein Update zu seinem nicht verbindlichen Angebot zur Übernahme von Evotec SE für 11,00 € pro Aktie in bar gegeben, was das Unternehmen mit 2,0 Milliarden € bewertet. Die vorgeschlagene Kombination würde eine führende global innovative Pharma-Dienstleistungsfirma schaffen, mit einem prognostizierten Jahresumsatz von 2 Milliarden $ im Jahr 2025. Die Übernahme würde Evotecs Fähigkeiten in der Arzneimittelentdeckung und der biologischen Produktion mit der Medikamentenabgabe-Technologie ENHANZE® von Halozyme kombinieren. Die vollständig in bar durchgeführte Transaktion würde durch liquide Mittel und neue Schulden finanziert, mit einer prognostizierten Nettoverschuldung von weniger als 2x innerhalb von zwei Jahren nach Abschluss. Halozyme erwartet, bis Ende 2024 über 800 Millionen $ in bar zu verfügen und einen Umsatz-CAGR von 15-20%+ von 2023 bis 2028 aufrechtzuerhalten sowie bis 2026 eine bereinigte EBITDA-Marge von 45-50% zu erreichen.
- Projected annual revenue of $2 billion by 2025
- Strong revenue growth projection of 15-20%+ CAGR (2023-2028)
- Expected 45-50% adjusted EBITDA margin by 2026
- Over $800 million cash reserves projected by end of 2024
- Net leverage expected to decrease to less than 2x within two years post-close
- Significant debt burden with approximately $3 billion net debt at close
- Initial high leverage ratio of 4.75x at transaction close
Insights
The proposed
The combination would transform Halozyme from a drug delivery technology company into a comprehensive pharma services provider. Key synergies include cross-selling opportunities across their 500+ biopharma partnerships and complementary technology platforms. The all-cash structure and no equity financing requirement maintains existing shareholder value while the projected rapid deleveraging suggests strong free cash flow generation potential.
This merger would significantly reshape the pharma services landscape by creating a unique end-to-end platform spanning drug discovery, biologics manufacturing and drug delivery. The combined entity would have substantial competitive advantages:
- Evotec's continuous biologics manufacturing capability with 10 late-stage products
- Halozyme's ENHANZE® platform with 8 approved products across 100+ markets
- Diversified revenue streams reducing business risk
The timing appears strategic as the biologics outsourcing market continues to grow rapidly. The deal would position the combined company to capture increased market share in the expanding biologics CDMO space while maintaining leadership in drug delivery technologies.
Would establish an innovative pharma services company with capabilities spanning drug discovery and development, biologic manufacturing and drug delivery technologies
Would meaningfully diversify, scale and extend Halozyme's revenue and adjusted EBITDA well into the next decade and beyond
All-cash transaction would be funded by cash on hand and new debt with expected pro forma net leverage less than 2x two years post close
The presentation highlights include:
The acquisition of Evotec would be a logical extension and diversification of Halozyme's business, and is aligned with Halozyme's M&A criteria:
- De-risked business: Evotec has a large, diverse revenue base with expected future revenue and margin expansion opportunities.
- Structurally similar business model: Evotec has a proprietary and innovative platform of technologies in drug discovery, development and biologic manufacturing.
- Strong biopharma partnerships: Evotec partners with more than 500 biopharma companies globally.
- Potential for durable long-term revenue growth: Evotec has platform opportunities and a pipeline that would be additive to future potential revenue streams.
The combination would create a unique B2B global innovative pharma services company with complementary and leverageable platforms and cross-selling opportunities:
- Drug discovery: Evotec's Shared R&D platform is an established and comprehensive continuum of innovative discovery platform tools with a strong track record of success and more than 500 partners and 140+ partnered and unpartnered asset opportunities.
- Continuous biologics manufacturing: Just – Evotec Biologics is a pioneer in end-to-end continuous manufacturing, a breakthrough biologic manufacturing capability with 10 products in late-stage development and clinical manufacturing and more than 50 products in CMC development/IND enabling.
- Drug delivery: Halozyme's ENHANZE® drug delivery technology is the leading, commercially-validated solution to facilitate the subcutaneous delivery of large volume injected biologic drugs, currently approved in eight products in more than 100 global markets, with expected near-term approvals, a robust pipeline in development and new deal opportunities.
The combination would meaningfully diversify, scale and extend Halozyme's revenue and adjusted EBITDA well into the next decade and beyond.
- Establishes a diversified pharma services portfolio with approximately
$2 billion - Enhances long-term growth profile and maintains 15
-20% + 2023A – 2028E revenue CAGR while extending and accelerating growth into the next decade and beyond. - Delivers robust long-term margin profile with a pro forma 45-
50% adjusted EBITDA margin by 2026 and significant cash flow generation over time.
The all-cash transaction would be supported by an existing lender group with a clear path to less than 2x net leverage within two years post-close.
- Halozyme has significant cash reserves on-hand and a strong balance sheet with cash projected to be more than
$800 million - Halozyme is working with financing relationship partners on optimal financing structure and confirms equity will not be used to finance the transaction.
- Assuming a transaction is consummated, net debt on balance sheet at close would be approximately
$3 billion - Net leverage is expected to decrease to less than 2x within two years post-close and quickly reducing meaningfully below that level through debt paydown and adjusted EBITDA growth, with additional multiple levers to further accelerate debt paydown over time.
For more information about Halozyme, its strategy, financials and capital allocation priorities, please visit https://ir.halozyme.com/overview/default.aspx.
Advisors
Centerview Partners is serving as Halozyme's financial advisor and Weil, Gotshal & Manges LLP, as legal advisor.
About Halozyme
Halozyme is a biopharmaceutical company advancing disruptive solutions to improve patient experiences and outcomes for emerging and established therapies. As the innovators of ENHANZE® drug delivery technology with the proprietary enzyme rHuPH20, Halozyme's commercially-validated solution is used to facilitate the subcutaneous delivery of injected drugs and fluids, with the goal of improving the patient experience with rapid subcutaneous delivery and reduced treatment burden. Having touched more than 800,000 patient lives in post-marketing use in eight commercialized products across more than 100 global markets, Halozyme has licensed its ENHANZE® technology to leading pharmaceutical and biotechnology companies including Roche, Takeda, Pfizer, Janssen, AbbVie, Eli Lilly, Bristol-Myers Squibb, argenx, ViiV Healthcare, Chugai Pharmaceutical and Acumen Pharmaceuticals.
Halozyme also develops, manufactures and commercializes, for itself or with partners, drug-device combination products using its advanced auto-injector technologies that are designed to provide commercial or functional advantages such as improved convenience, reliability and tolerability, and enhanced patient comfort and adherence. The Company has two commercial proprietary products, Hylenex® and XYOSTED®, partnered commercial products and ongoing product development programs with Teva Pharmaceuticals and Idorsia Pharmaceuticals.
Halozyme is headquartered in
For more information visit www.halozyme.com and connect with us on LinkedIn and Twitter.
Forward-Looking Statements
In addition to historical information, the statements set forth in this press release include forward-looking statements including, without limitation, statements concerning the Company's and Evotec's expected future financial performance and growth rates, including expectations for future total revenues, gross margin expansion, and adjusted EBITDA margin, as well as the Company's future plans, objectives, expectations and intentions relating to a potential transaction concerning Evotec, such potential transaction's expected impact and contributions to the Company's and the combined group's operations and financial results, the financing and closing of such potential transaction, as well as the expected timing and benefits of such potential transaction, the Company's and Evotec's future product development and regulatory events and goals, product collaborations, the Company's business intentions and financial statements and anticipated results. These forward-looking statements are typically, but not always, identified through use of the words "expect," "believe," "enable," "may," "will," "could," "can," "durable," "growth," "innovate," "potential," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results could differ materially from the expectations contained in these forward-looking statements as a result of several factors, including uncertainties concerning future matters such as market conditions, changes in domestic and foreign business changes in the competitive environment in which the Company and Evotec operate, discussions with Evotec and its board of directors, and financing a potential transaction, inability of the parties to successfully or timely enter into or consummate a transaction, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined group or the expected benefits of a transaction, unexpected levels of the combined group's revenues, expenditures and costs, unexpected results or delays in the growth of the combined group's business, or in the development, regulatory review or commercialization of the combined group's partnered or proprietary products, regulatory approval requirements, unexpected adverse events or patient outcomes and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. Except as required by law, the Company undertakes no duty to update forward-looking statements to reflect events after the date of this release.
Non-GAAP Financial Measures:
These materials contain certain non-GAAP financial measures and projections. The Company reports Adjusted EBITDA, Adjusted EBITDA Margin and non-GAAP diluted earnings per share and expectations of those measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company does not provide reconciliations for forward-looking adjusted measures to GAAP, including as to the projected benefits of the potential transaction concerning Evotec, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation.
Halozyme Contacts
Investors
Tram Bui
Halozyme VP, Investor Relations and Corporate Communications
609-359-3016
tbui@halozyme.com
Andrea Calise
Teneo
917-826-3804
andrea.calise@teneo.com
Christina Coronios
Teneo
646-531-2882
christina.coronios@teneo.com
German Media
Felix Schoenauer
Teneo
+49 69 867906054
Press-halo@teneo.com
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SOURCE Halozyme Therapeutics, Inc.
FAQ
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