Halozyme Acquires Elektrofi for $900M, Combining Subcutaneous Drug Delivery Technologies

Halozyme Therapeutics has announced its acquisition of Elektrofi for up to $900 million, marking a significant consolidation in the subcutaneous drug delivery technology sector. The deal, which brings together two companies with complementary technologies and shared partnerships with major pharmaceutical firms, is set to reshape the landscape of drug administration.

Acquisition Details and Strategic Rationale

Halozyme will pay $750 million upfront for Elektrofi, with the potential for an additional $150 million in milestone payments tied to future product approvals. The acquisition is expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals.

Helen Torley, CEO of Halozyme, described the move as "a pivotal step in Halozyme's evolution," emphasizing the complementary nature of Elektrofi's Hypercon technology to Halozyme's existing Enhanze platform. The combination is expected to expand Halozyme's drug delivery offerings and position the company for long-term revenue growth through Elektrofi's licensing and royalty business model.

Technological Synergies and Market Impact

The merger brings together two distinct but complementary subcutaneous drug delivery technologies:

1. Halozyme's Enhanze platform, which enables the administration of certain drugs via under-the-skin injection.
2. Elektrofi's Hypercon technology, which uses microparticles to allow for high-concentration, low-volume subcutaneous delivery of biologics.

This technological synergy is expected to significantly broaden the range of drugs that can be administered subcutaneously, potentially transforming patient care by enabling more at-home treatments. Torley highlighted that Elektrofi's technology can achieve concentrations of 400-500 mg/mL, four to five times higher than standard industry options, making it possible to deliver effective doses in smaller volumes.

Partnerships and Future Prospects

Both Halozyme and Elektrofi have established partnerships with leading pharmaceutical companies:

• Halozyme's Enhanze technology is used in 10 commercial products, including therapies from Johnson & Johnson, Takeda, Roche, and Bristol Myers Squibb.
• Elektrofi has secured deals with Eli Lilly, Johnson & Johnson, and Argenx, with significant upfront payments and potential milestone earnings.

Halozyme anticipates that two of Elektrofi's partner products will enter clinical trials by the end of 2026, with potential royalties beginning as early as 2030. The company also sees opportunities to pair Hypercon with its own small-volume autoinjectors, particularly in immunology, neurology, and other chronic diseases where at-home administration is becoming increasingly important.

The acquisition is expected to accelerate Elektrofi's advancement through Halozyme's regulatory expertise and insights into development and manufacturing requirements. The entire Elektrofi team will join Halozyme post-closing, ensuring continuity and integration of expertise.