By Maitane Sardon
Evotec shares soared after the company said private equity group Triton had acquired about 10% of its stock.
Luxembourg-based private equity firm Triton acquired a total of 17,730,913 ordinary shares in a series of transactions totaling 131 million euros ($140.4 million), the German biotechnology company said.
Shares traded 12% higher at 8.52 euros in European early morning trading on Monday.
Triton, which also owns pharmaceutical services companies Bormioli Pharma and Clinigen, now holds 9.99% of Evotec's stock.
Evotec's market performance remains one of the worst in the sector so far this year, with shares down more than 60% over the last 12 months.
"In a risk-off environment, Evotec's mixed model that includes sharing risk with partners, plus its internal product R&D, aren't appreciated by investors," RBC Capital Markets analysts said in a research note. Shares have suffered due to self-inflicted issues that have contributed to low margins and stock rating downgrades, they added, noting that the stock can outperform in the long term, potentially catalyzed by Triton's stock acquisition.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
November 11, 2024 05:22 ET (10:22 GMT)
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