Halozyme Therapeutics has agreed to acquire US-based Elektrofi in a deal worth up to $900m, which will see it add microparticle capabilities to its portfolio of drug delivery technologies.

Halozyme will purchase fellow subcutaneous drug delivery specialist Elektrofi for $750m upfront, along with with three separate $50m milestone payments. Elektrofi will receive these payments if three products, which are currently undisclosed, are approved following the takeover.  

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Elektrofi’s platform, called Hyercon, creates biologic concentrations up to five times higher than standard aqueous solution formulations. The company achieves this by turning drug substance into microparticles, enabling high protein concentrations while maintaining subcutaneous administration.

Biologic drugs are often limited by low concentrations due to proteins being prone to aggregation. Therefore, these therapies require large volumes to deliver doses capable of achieving treatment efficacy. Halozyme said that the newly acquired auto-injector technology can reduce the volume of injection for the same dosage, which will “create more opportunities” for administration in the healthcare office and at-home settings.

Halozyme’s CEO Dr Helen Torley said: “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.”

Two big pharma companies have already tapped up Elektrofi’s platform in search of enhanced drug concentrations. Eli Lilly signed a deal worth up to $470m with the company in October 2023, giving it exclusive rights to three undisclosed targets. Johnson & Johnson (J&J) then followed up with a five-programme licensing deal with Elektrofi – the transaction was worth nearly $800m, including milestone payments.

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The acquisition of a peer subcutaneous delivery company follows a strong financial year for Halozyme. Its own Enhanze subcutaneous drug delivery technology, which is utilised in J&J’s mega-blockbuster Darzalex (daratumumab) amongst other approved drugs, spurred 2024 revenue to grow 22% to just over $1bn.

Halozyme highlighted the similarities of its own and Elektrofi’s business models, which are both fuelled by royalty revenue. Moreover, the latter’s platform has patents lasting into the 2040s, meaning the takeover “supports long-term revenue growth opportunity”, according to Halozyme.

Halozyme anticipates that two of Elektrofi’s partner products will have started clinical development by the end of 2026, with potential royalties to follow as early as 2030. There is up to $275m available for Elektrofi in development and commercial milestone payments linked to those two products. The initial partner products include “de-risked mechanisms of action that are approved blockbusters today”.

Elektrofi’s CEO Chase Coffman said: “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 commercialisation strategy.”

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