Halozyme Therapeutics has entered into a definitive agreement to acquire Elektrofi, a biopharmaceutical company developing breakthrough ultra-high concentration microparticle technology for biologics, in a deal valued at up to $900 million. The transaction includes an upfront payment of $750 million and up to three $50 million milestone payments contingent on regulatory approvals of three separate products.
The acquisition centers on Elektrofi's Hypercon technology, an innovative microparticle approach that enables biologic product formulation concentrations of 400-500 mg/ml while maintaining syringeability - the ability to inject smoothly and easily. This represents a 4 to 5-fold increase over standard aqueous solution formulations for biologics currently available.
Strategic Expansion of Drug Delivery Portfolio
"This acquisition marks a pivotal step in Halozyme's evolution," said Dr. Helen Torley, President and CEO of Halozyme. "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, royalty revenue business model."
The Hypercon technology substantially expands the scope of therapeutics that can be delivered subcutaneously by enabling highly concentrated biologics to be administered through smaller injection volumes. This creates more opportunities for at-home and healthcare practitioner office delivery, including via small volume auto-injectors or Halozyme's innovative high volume auto-injector systems.
Near-Term Development Timeline
The acquisition is positioned for near-term value creation, with two of Elektrofi's partners projected to begin Hypercon-formulated product clinical development by year-end 2026 or earlier. The initial partner targets include de-risked mechanisms of action that are approved blockbusters today, providing a foundation for accelerated development timelines.
Chase Coffman, CEO and Co-founder of Elektrofi, commented that "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."
Financial Impact and Revenue Projections
Halozyme expects royalty revenue contribution from the Hypercon technology to begin as early as 2030. The company projects up to $275 million in potential development and commercial milestone payments from Elektrofi's existing two partner products expected to enter clinical development by year-end 2026 or earlier.
The transaction is expected to be less than 5% dilutive to Non-GAAP diluted earnings per share over the medium-term, excluding potential milestone payments related to programs in development. Halozyme anticipates full year 2026 incremental operating expenses of approximately $55 million.
The company's net leverage is expected to increase to approximately 2X net debt-to-EBITDA immediately following the transaction close, with rapid de-leveraging anticipated in subsequent quarters. The transaction is expected to close in the fourth quarter of 2025, subject to HSR review completion and other customary closing conditions.
Intellectual Property and Long-Term Growth
The Hypercon technology features long duration intellectual property extending into the 2040s, with potential for individual product IP extension through proprietary reformulation. This highly scalable licensing model creates meaningful opportunities across existing and new partners, with a broad range of biologics programs and modalities.
Halozyme reaffirmed its 2025 financial guidance, expecting total revenue of $1,275 million to $1,355 million, representing 26% to 33% growth over 2024. Revenue from royalties is projected at $825 million to $860 million, representing 44% to 51% growth over 2024.
The acquisition leverages Halozyme's proven track record of developing, commercializing and scaling subcutaneous drug delivery technologies, building on its established ENHANZE drug delivery platform that has already touched one million patient lives across ten commercialized products in over 100 global markets.
