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
Halozyme to host conference call and webcast today at 5:30am PT/ 8:30am ET
SAN DIEGO, Oct. 1, 2025 /PRNewswire/ — Halozyme Therapeutics, Inc. (NASDAQ:HALO) (“Halozyme”) today announced it has entered into a definitive agreement to acquire Elektrofi, Inc. (“Elektrofi”), a biopharmaceutical company with a breakthrough ultra-high concentration microparticle technology for biologics, branded Hypercon™. The transaction, which is comprised of an upfront payment of $750 million and up to three $50 million milestone payments contingent on three separate product regulatory approvals, was unanimously approved by the Boards of Directors of both Halozyme and Elektrofi.
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.
“This acquisition marks a pivotal step in Halozyme’s evolution. 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,” said Dr. Helen Torley, President and Chief Executive Officer of Halozyme. “We look forward to welcoming Elektrofi’s talented team as we embark on our next chapter of drug delivery innovation to continue to drive value for all of our stakeholders including our partners, patients, and shareholders.”
Chase Coffman, Chief Executive Officer and Co-founder of Elektrofi, commented, “Since Elektrofi’s founding, we have been committed to revolutionizing the delivery of biologic therapies so that patients can live life on their terms. Today’s announcement brings us closer to achieving that vision. 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.”
Compelling Strategic Rationale
Strong Strategic Fit:
- Extends Halozyme’s vision and breadth of innovative drug delivery technologies
- Setting new standards in convenience, accessibility and treatment options with broad portfolio of first-to-market proprietary technologies
- Complementary SC technologies support secular trend toward at-home and in healthcare practitioner office administration of biologics
- Hypercon™ technology substantially expands scope of therapeutics that can be delivered subcutaneously with its ability to deliver highly concentrated biologics subcutaneously
- Highly scalable licensing model with compelling expansion opportunities
- Broad range of biologics programs and modalities creates meaningful opportunities across existing and new partners
- Well aligned business models with royalty revenue and low capital intensity
- Long duration intellectual property into 2040s
- Supports long-term revenue growth opportunity
- Enhances durability of drug delivery licensing business model
Poised for Growth:
- Expect near-term inflection and value creation
- Initial partner products include de-risked MoAs that are approved blockbusters today
- Two of Elektrofi’s partners projected to begin Hypercon™ formulated product clinical development by year end 2026, or earlier
- Clear pathway for significant growth beginning as early as 2030
- Royalty revenues are projected to begin in 2030
- 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, supports near-term de-risking of acquisition and low capital intensity of Elektrofi
- Acquisition supports further de-risking and accelerated commercialization timeline of Hypercon™ technology
- Leverages Halozyme’s proven track record of developing, commercializing and scaling SC drug delivery technologies
Financial Update
The transaction is expected to be less than 5% dilutive to Non-GAAP diluted EPS over medium-term, excluding potential milestone payments related to programs in development, which could offset dilution prior to projected royalty revenue in 2030 and beyond. We expect full year 2026 incremental operating expense of approximately $55 million.
Today, Halozyme is reaffirming its 2025 guidance ranges, which were last updated on August 5th, 2025, excluding the impact of the accounting treatment of the transaction. The final determination of whether this transaction will be accounted for as a business combination or asset acquisition will be determined at the close.
For the full year 2025, the Company expects:
- Total revenue of $1,275 million to $1,355 million, representing growth of 26% to 33% over 2024 total revenue, …