Halozyme Acquires Elektrofi for $750M to Expand Drug Delivery Capabilities

Halozyme Therapeutics has agreed to acquire Elektrofi for $750 million to expand its drug delivery technology portfolio. The acquisition will enhance Halozyme's capabilities in the field and provide new opportunities for its partners. The deal is expected to close in Q4 2022, subject to regulatory approvals.

Halozyme Therapeutics, Inc. (NASDAQ: HALO) has announced its intention to acquire Elektrofi, Inc., a biopharmaceutical company with a breakthrough ultra-high concentration microparticle technology for biologics, branded Hypercon™. The acquisition aims to expand Halozyme's drug delivery technology offerings and position the company for long-term revenue growth.

The acquisition, valued at $750 million in upfront consideration, includes an option for up to three $50 million milestone payments contingent on the successful marketing approvals of three Hypercon™ products. The transaction is expected to close in Q4 2025, subject to regulatory approvals and customary closing conditions Halozyme to Acquire Elektrofi, Expanding Our Offerings in Innovative Drug Delivery and Strengthening Long-Term Growth into 2040s^[1].

The Hypercon™ technology enables high protein concentrations of 400-500 mg/ml, which can be up to 4 to 5 times higher than standard aqueous solution formulations for biologics today. This increased concentration reduces the volume of injection, creating more opportunities for at-home and healthcare practitioner office delivery. The technology is particularly suited for monoclonal antibodies and other large molecule drugs Halozyme to Acquire Elektrofi, Expanding Our Offerings in Innovative Drug Delivery and Strengthening Long-Term Growth into 2040s^[1].

The acquisition aligns with Halozyme's strategic vision to diversify its drug delivery technology offerings and support the growing trend toward at-home and in healthcare practitioner office administration of biologics. The company expects initial royalty revenue contributions to begin as early as 2030, with the potential for significant growth beginning in 2030 Halozyme to Acquire Elektrofi, Expanding Our Offerings in Innovative Drug Delivery and Strengthening Long-Term Growth into 2040s^[1].

Halozyme's President and CEO, Dr. Helen Torley, stated, "This acquisition marks a pivotal step in Halozyme's evolution. With Elektrofi's Hypercon technology, we are expanding and diversifying our drug delivery technology offerings to the biopharma industry and positioning Halozyme for continued long-term revenue growth through Elektrofi's licensing and royalty revenue business model."

Chase Coffman, CEO and Co-founder of Elektrofi, commented, "Since Elektrofi's founding, we have been committed to revolutionizing the delivery of biologic therapies so that patients can live life on their terms. Today's announcement brings us closer to achieving that vision. Halozyme's proven industry expertise and capabilities in developing drug delivery licensing businesses will advance our unique Hypercon technology, strengthen existing collaborations, support expansion into new partnerships, and accelerate our commercialization strategy."

The transaction is expected to be less than 5% dilutive to Halozyme's Non-GAAP diluted EPS over the medium term, excluding potential milestone payments related to programs in development. The company expects full year 2026 incremental operating expense of approximately $55 million Halozyme to Acquire Elektrofi, Expanding Our Offerings in Innovative Drug Delivery and Strengthening Long-Term Growth into 2040s^[1].

Halozyme will host a conference call and webcast today to discuss the acquisition in more detail. The call can be accessed live with pre-registration via link: https://registrations.events/direct/Q4I781370 Halozyme to Acquire Elektrofi, Expanding Our Offerings in Innovative Drug Delivery and Strengthening Long-Term Growth into 2040s^[1].