Halozyme Completes Acquisition of Elektrofi, Expanding Breadth of Offerings in Drug Delivery

Rhea-AI Summary

Halozyme (NASDAQ: HALO) completed its acquisition of Elektrofi, adding the Hypercon™ ultra‑high concentration microparticle formulation platform to its drug delivery portfolio.

Key terms: $750 million upfront, up to $900 million total with three $50 million regulatory milestones; company projects royalty revenue beginning in 2030 and up to $275 million in partner‑linked milestones from two programs expected to enter clinical development by year‑end 2026. Halozyme expects ~$55 million incremental operating expense in 2026 and estimates the deal will be less than 5% dilutive to non‑GAAP diluted EPS over the medium term.

Positive

• $750M upfront acquisition expands Halozyme delivery portfolio
• Hypercon enables 400–500 mg/ml biologic formulations (4–5× standard concentrations)
• Two partner programs expected to enter clinic by year‑end 2026, unlocking near‑term milestone potential

Negative

• Acquisition increases 2026 operating expense by ~$55M
• Deal could be up to $900M at approvals, creating potential cash/expense burden
• Transaction is projected to be <5% dilutive to non‑GAAP diluted EPS in the medium term

Insights

Corporate strategy and finance expert

Acquisition expands royalty pipeline but carries near-term cost and delayed revenue realization.

The deal adds a complementary royalty stream to the existing ENHANZE business by acquiring Elektrofi's Hypercon™ platform for an upfront $750 million plus up to $150 million in approval-linked milestones, creating a potential total consideration of $900 million.

Near-term impacts include an expected incremental operating expense of approximately $55 million in 2026 and an upfront cash outflow; Halozyme projects royalty revenue beginning in 2030 and estimates the transaction will be less than 5% dilutive to non-GAAP diluted EPS over the medium term. The economics therefore shift value toward long‑dated royalties and milestones, while imposing predictable near-term earnings and cash absorption.

Watch execution milestones: two partner programs projected to enter clinical development by year-end 2026, the timing of partner regulatory approvals that trigger up to three $50 million payments, and the reported 2030 start of royalty receipts; these items drive the materiality and timing of returns over the next 4–6 years.

Biologics formulation and commercialization expert

Hypercon™ promises higher-concentration biologic dosing that could enable new delivery formats if partners advance programs.

Hypercon™ targets ultra-high concentrations (reported at 400-500 mg/ml), which can reduce injection volume and enable small-volume auto-injectors or use with larger auto-injectors. If partner molecules maintain stability and clinical performance at those concentrations, the platform may widen route-of-administration options and improve patient convenience.

Key dependencies include partner selection of derisked mechanisms of action, successful translation of formulation performance into clinical safety and efficacy, and regulatory acceptance of reformulated products. Two partner programs are projected to begin clinical development by year-end 2026; clinical entry and subsequent regulatory milestones will materially de-risk platform value ahead of the projected royalty start in 2030.

Royalty revenue contribution expected to begin as early as 2030

Initial partner targets include derisked MoAs that are approved blockbusters today

Highly scalable licensing model and long duration IP into 2040s; potential for individual product IP extension through proprietary reformulation

Two of Elektrofi's partners projected to begin Hypercon™ formulated product clinical development by year end 2026, or earlier

SAN DIEGO, Nov. 18, 2025 /PRNewswire/ -- Halozyme Therapeutics, Inc. (NASDAQ: HALO) ("Halozyme") today announced the successful completion of its acquisition of Elektrofi, Inc. ("Elektrofi"), a biopharmaceutical company with a proprietary ultra-high concentration microparticle formulation technology for biologics, branded Hypercon™.

The transaction follows the expiration of the Hart-Scott-Rodino waiting period and satisfaction of all closing conditions.

"Completing the acquisition of Elektrofi is a strategic milestone in our mission to expand Halozyme's drug delivery technology offerings to biopharma companies. With the addition of the Hypercon ultra-high concentration microparticle formulation technology, we will be able to offer partners a diverse portfolio of drug delivery solutions. The acquisition adds an additional high growth potential, royalty revenue business that is complementary to the strong ENHANZE royalty business to drive long-term royalty growth for decades to come," said Dr. Helen Torley, President and Chief Executive of Halozyme. "Most importantly, this acquisition reinforces our mission to transform how vital medicines are delivered, ensuring treatments fit seamlessly into a patient's life, rather than patients having to shape their lives around treatment."

"We are excited to welcome the talented Elektrofi team to Halozyme. We look forward to supporting their continued innovation and execution as we now advance the two programs into the clinic before year end 2026, a key step toward unlocking the potential of the Hypercon platform and delivering long-term value to our partners and shareholders," concluded Dr. Torley.

The Hypercon™ technology is an innovative microparticle approach that sets a new standard in the pursuit of hyper concentration, enabling high protein concentrations while maintaining syringeability, which is the ability to inject smoothly and easily. Hypercon™ enables biologic product formulation concentrations of 400-500 mg/ml, which can be up to 4 to 5 times higher than standard aqueous solution formulations for biologics today. The increased concentration reduces the volume of injection for the same dosage and will create more opportunities for at-home and HCP office delivery, including via small volume auto-injector or with Halozyme's innovative high volume auto-injector.

Halozyme has acquired Elektrofi for an upfront payment of $750 million, subject to customary purchase price adjustments, and up to three $50 million milestone payments contingent on three separate product regulatory approvals, for a total consideration of up to $900 million at approvals.

Halozyme projects royalty revenues to begin in 2030, and up to $275 million in potential development and commercial milestone payments from Elektrofi's existing two partner programs 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 EPS over the medium-term, excluding potential milestone payments related to programs in development, which could offset dilution prior to projected royalty revenue in 2030 and beyond. The Company expects full year 2026 incremental operating expense of approximately $55 million.

About Halozyme

Halozyme is a biopharmaceutical company advancing disruptive solutions to improve patient experiences and outcomes for emerging and established therapies. As the innovators of ENHANZE® drug delivery technology with the proprietary enzyme rHuPH20, Halozyme's commercially-validated solution is used to facilitate the subcutaneous delivery of injected drugs and fluids, with the goal of improving the patient experience with rapid subcutaneous delivery and reduced treatment burden. Having touched one million patient lives in post-marketing use in ten commercialized products in at least one major region and across more than 100 global markets, Halozyme has licensed its ENHANZE® technology to leading pharmaceutical and biotechnology companies including Roche, Takeda, Pfizer, Janssen, AbbVie, Eli Lilly, Bristol-Myers Squibb, argenx, ViiV Healthcare, Chugai Pharmaceutical, Acumen Pharmaceuticals and Merus N.V.

Halozyme also develops, manufactures and commercializes, for itself or with partners, drug-device combination products using its advanced auto-injector technologies that are designed to provide commercial or functional advantages such as improved convenience, reliability and tolerability, and enhanced patient comfort and adherence. The Company has two commercial proprietary products, Hylenex® and XYOSTED®, partnered commercial products and ongoing product development programs with Teva Pharmaceuticals and McDermott Laboratories Limited, an affiliate of Viatris Inc.

Halozyme is headquartered in San Diego, CA and has offices in Ewing, NJ and Minnetonka, MN. Minnetonka is also the site of its operations facility.

For more information visit www.halozyme.com and connect with us on LinkedIn and Twitter.

About Elektrofi

Elektrofi is a biopharmaceutical formulation technology company that is revolutionizing the delivery of biologic therapies by giving patients the ability to control how they want to receive and benefit from life-changing medicines. Its breakthrough hyper concentrated microparticle technology, HyperconTM, resolves the limitations associated with intravenously delivered biologic therapies by enabling convenient at-home subcutaneous self-administration. With a focus on monoclonal antibodies, therapeutic proteins, and other large molecule drugs, they create, develop, and commercialize subcutaneous biologic therapies in collaboration with strategic partners. Elektrofi believes a patient-centered healthcare approach can lead to a healthier world.  The company is headquartered in Boston and innovates globally.

Forward-Looking Statements

In addition to historical information, the statements set forth in this press release include forward-looking statements including, without limitation, statements concerning the Company's expected future financial performance, growth and revenues, including collaboration and royalty revenues,  future plans, objectives, expectations and intentions relating to the acquisition of Elektrofi, such acquisition's expected impact and contributions to the Company's, Elektrofi's and the combined group's operations and financial results (including potential development and commercialization of partnered products and timing related to these events), as well as the expected benefits of the acquisition, the Company's and Elektrofi's future product development and regulatory events and goals, and product collaborations.  Forward-looking statements regarding the Company's ENHANZE® drug delivery technology include the possible benefits and attributes of ENHANZE® including its potential application to aid in the dispersion and absorption of other injected therapeutic drugs and facilitating more rapid delivery and administration of higher volumes of injectable medications through subcutaneous delivery and potential to decrease treatment burden and enable new treatment sites.  Forward-looking statements regarding Elektrofi's Hypercon™ technology include statements regarding its ability to achieve certain levels of biologic concentration and enable the administration of smaller volumes or doses of pharmaceutical products.  Forward-looking statements related to Elektrofi's intellectual property include expectations for length of patent terms and patent expirations and the expected impact such patents may have on the duration, durability and amounts of future royalty payments the Company may receive from licensing such intellectual property.  Forward-looking statements regarding the combined group's business may also include potential growth driven by the combined group's partner development and commercialization efforts (including anticipated product approvals and launches and the timing related to these events), anticipated royalty terms and rates for the Company's current and future collaboration products and product candidates, projections for future sales revenue and market share of the combined group's collaborators' products and product candidates, potential new or expanded collaborations, collaborative targets and indications for partnered products.  These forward-looking statements are typically, but not always, identified through use of the words "expect," "believe," "enable," "may," "will," "could," "can," "durable," "growth," "innovate," "develop," "vision,"  "potential," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results could differ materially from the expectations contained in these forward-looking statements as a result of several factors, including uncertainties concerning future matters such as market conditions, changes in domestic and foreign business, changes in the competitive environment in which each of the Company and Elektrofi operates,  or the expected benefits of the acquisition, unexpected levels of the combined group's revenues, expenditures and costs, unexpected results or delays in the growth of the combined group's business, or in the development, regulatory review or commercialization of the combined group's partnered or proprietary products, unexpected early expiration or termination of the patent terms for the combined group's drug delivery technologies,  unexpected levels of revenues (including royalty revenue received from the combined group's collaboration partners and revenues from proprietary product sales), expenditures and costs, unexpected results or delays in the growth of the combined group's business (including as a result of unexpected conversion rates) or other proprietary product revenues, or in the development, regulatory review or commercialization of the combined group's partnered products, regulatory approval requirements, unexpected adverse events or patient outcomes and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations".  Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements or any other information contained herein.

Contacts

Tram Bui
Halozyme
VP, Investor Relations and Corporate Communications
609-359-3016
tbui@halozyme.com

Sydney Charlton
Teneo
917-972-8407
sydney.charlton@teneo.com

 

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SOURCE Halozyme Therapeutics, Inc.

FAQ

How much did Halozyme pay to acquire Elektrofi (HALO) and what is the maximum consideration?

Halozyme paid an upfront $750 million with up to $900 million total consideration including three $50 million regulatory milestones.

When does Halozyme (HALO) expect royalty revenue from Elektrofi technology to begin?

Halozyme projects royalty revenue from the Elektrofi portfolio to begin as early as 2030.

What clinical timelines did Halozyme provide for Elektrofi partner programs?

Two Elektrofi partner programs are projected to begin Hypercon formulated product clinical development by year‑end 2026 or earlier.

How will Hypercon™ affect biologic formulation concentrations and delivery options?

Hypercon enables formulations of 400–500 mg/ml (about 4–5× current aqueous concentrations), reducing injection volume and enabling small volume auto‑injectors or high‑volume devices.

What is the expected near‑term financial impact on Halozyme's 2026 results?

Halozyme expects approximately $55 million in incremental operating expense for full year 2026 related to the acquisition.

How dilutive is the Elektrofi acquisition to Halozyme (HALO) shareholders?

The company estimates the transaction will be less than 5% dilutive to non‑GAAP diluted EPS over the medium term, excluding potential offsetting milestone revenues.