HALO Withdraws Acquisition Bid for EVO, Reaffirms '24 View, Stock Up

Core Viewpoint - Halozyme Therapeutics, Inc. has withdrawn its non-binding proposal to acquire Evotec SE due to Evotec's management's unwillingness to discuss the offer, which was valued at €2.0 billion [1][5]. Group 1: Acquisition Proposal - Halozyme's acquisition offer was €11.00 per share in cash, representing a 109% premium over Evotec's undisturbed share price on October 15, 2024 [3]. - The acquisition was expected to create a global services company with complementary technologies and an innovative pipeline, potentially diversifying Halozyme's operations and extending revenues and EBITDA into the next decade [4]. Group 2: Financial Guidance - Halozyme reaffirmed its 2024 revenue guidance, expecting total revenues between $970 million and $1.02 billion, indicating a year-over-year growth of 13-22% [7]. - Royalty revenues are anticipated to be in the range of $550-$565 million, with adjusted EBITDA expected between $595 million and $625 million, reflecting a growth of 40% to 47% year over year [8]. - The company projects adjusted earnings per share between $4.00 and $4.20, indicating an improvement of 44-52% year over year [8]. Group 3: Stock Performance - Following the announcement of the acquisition withdrawal, shares of Halozyme increased by 7.2% on November 22, and the stock has rallied 32.6% year-to-date, contrasting with an industry decline of 8.5% [2].