Halozyme to acquire Elektrofi for $750 million, expanding drug delivery tech

SAN DIEGO - Halozyme Therapeutics, Inc. (NASDAQ:HALO), an $8.58 billion market cap biopharmaceutical company with a "GREAT" financial health rating according to InvestingPro, announced Wednesday it has entered into a definitive agreement to acquire Elektrofi, Inc., a biopharmaceutical company specializing in ultra-high concentration microparticle technology for biologics.

The transaction includes an upfront payment of $750 million and up to three $50 million milestone payments contingent on separate product regulatory approvals. With a strong current ratio of 8.36x, Halozyme appears well-positioned to handle this investment. The acquisition is expected to close in the fourth quarter of 2025, subject to regulatory review and customary closing conditions.

Elektrofi’s Hypercon technology enables biologic product formulation concentrations of 400-500 mg/ml, up to 4-5 times higher than standard aqueous solutions for biologics. This increased concentration reduces injection volume for the same dosage, potentially creating more opportunities for at-home and healthcare practitioner office delivery.

"This acquisition marks a pivotal step in Halozyme’s evolution," said Dr. Helen Torley, President and CEO of Halozyme. "With Elektrofi’s Hypercon technology, we are expanding and diversifying our drug delivery technology offerings to the biopharma industry."

Two of Elektrofi’s partners are projected to begin Hypercon formulated product clinical development by year-end 2026 or earlier, with royalty revenue contribution expected to begin as early as 2030. The company claims the technology is supported by intellectual property extending into the 2040s.

The transaction is expected to be less than 5% dilutive to Halozyme’s Non-GAAP diluted earnings per share over the medium term, with approximately $55 million in incremental operating expenses projected for 2026.

Halozyme reaffirmed its 2025 guidance of total revenue between $1,275 million and $1,355 million, representing 26-33% growth over 2024, excluding the impact of the transaction’s accounting treatment. This continues the company’s strong growth trajectory, having achieved nearly 35% revenue growth over the last twelve months. According to InvestingPro analysis, which offers comprehensive research reports on over 1,400 US stocks, Halozyme maintains a perfect Piotroski Score of 9, indicating excellent financial strength.

The company expects its net leverage to increase to approximately 2X net debt-to-EBITDA immediately following the transaction close, with rapid de-leveraging anticipated in subsequent quarters.

This information is based on a press release statement from Halozyme. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available through their detailed Pro Research Report, which transforms complex financial data into actionable intelligence for investors.

In other recent news, Halozyme Therapeutics has seen several positive developments. The company reported strong earnings results for the first half of 2025, prompting Benchmark to raise its stock price target from $75 to $90, maintaining a Buy rating. Citizens JMP also raised its price target to $91, following Halozyme’s second-quarter financial results that exceeded expectations and led to revised guidance for 2025. Meanwhile, H.C. Wainwright increased its price target to $85, influenced by Merck & Co.’s FDA approval for subcutaneous Keytruda, which could benefit Halozyme’s technology. Citizens JMP reaffirmed its $91 target, viewing the final CMS guidance for Medicare drug price negotiations as favorable for Halozyme. Goldman Sachs adjusted its target to $56, considering the potential impacts of the upcoming CMS guidance on the Inflation Reduction Act. These developments highlight the recent analyst confidence in Halozyme’s financial performance and strategic positioning.

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