Both Halozyme and Elektrofi have partnered with several Big Pharma companies to provide drug delivery technologies.
Halozyme Therapeutics will acquire Elektrofi for up to $900 million in a deal that will combine two subcutaneous drug delivery specialists that have each lent their technologies to Big Pharma companies.
The deal, announced Wednesday, will involve a $750 million upfront payment from Halozyme, plus up to three $50-million milestone payments, each contingent on different product approvals. Halozyme and Elektrofi’s respective boards of directors have unanimously signed off on the deal, and the companies expect the transaction to wrap up in the fourth quarter, pending customary closing conditions.
According to Halozyme’s news release, the acquisition makes strong strategic sense, bringing together “complementary” subcutaneous technologies that boost the convenience and accessibility of innovative therapies. The Elektrofi buyout also promises to be a financial boon to Halozyme, with milestone payments potentially hitting $275 million, alongside royalty revenues from the microparticle platform that are set to begin in 2030.
Halozyme and Elektrofi are known for their drug delivery technologies, which many of pharma’s biggest players have bought into. Halozyme, for instance, owns the Enhanze platform, which allows certain drugs to be administered via an under-the-skin injection. According to the company’s website, there are currently 10 commercial products that use Enhanze, among which are Johnson & Johnson’s multiple myeloma therapy Darzalex and lung cancer drug Rybrevant.
Takeda is also leveraging the Enhanze technology for its primary immunodeficiency drug Hyqvia, while Roche uses the platform for many of its products, including the PD-1 blocker Tecentriq and the multiple sclerosis medicine Ocrevus. Bristol Myers Squibb also partnered with Halozyme for the subcutaneous formulation of its cancer therapy Opdivo.
Elektrofi also has a high-profile roster of Big Pharma partners. The company’s Hypercon technology uses microparticles to similarly allow a convenient, low-volume subcutaneous delivery of biologics as opposed to infusions.
In October 2023, Eli Lilly paid $20 million upfront to use Elektrofi’s technology for three targets, with Elektrofi in line for more than $150 million in future payments per target. J&J also uses Elektrofi’s microparticle approach, putting down $18 million in January 2024 in a deal that spans five targets. Milestones under the J&J deal reach above $155 million per target.
Argenx is also an Elektrofi partner under an April 2021 agreement geared toward exploring subcutaneous formulations for the former’s FcRn-targeting products.
