U.S. company Halozyme Therapeutics, regarded as a competitor to Korea's bio corporations Alteogen, will acquire Elektrofi, which has subcutaneous injection drug delivery technology, for up to $900 million (about 1.2 trillion won in Hanwha).
Halozyme said on the 1st (local time) that it signed a definitive agreement to acquire Elektrofi. The terms include an upfront payment of $750 million (1.05 trillion won) and an additional total of $150 million, with $50 million per drug if three future new drugs are approved. If the acquisition is completed within the fourth quarter of this year, all Elektrofi employees will join Halozyme.
◇ Seeking synergy with respective subcutaneous injection technologies
With this acquisition, Halozyme secured Elektrofi's Hypercon technology. The technology turns drugs into fine particles. This raises the drug concentration 4 to 5 times at the same volume, allowing a small amount of drug injected subcutaneously to replace a large-volume intravenous infusion. Dosing time is also reduced, with intravenous infusions taking hours, while subcutaneous injections are shortened to 1 to 2 minutes, significantly improving patient convenience.
Halozyme and Alteogen have already independently developed technologies to convert intravenous therapies into subcutaneous formulations. The principle is to enzymatically break down hyaluronic acid in subcutaneous tissue to speed drug absorption. Halozyme's technology platform is called Enhanze, and Alteogen's platform is called Hybrozyme.
If Enhanze is a technology that enables rapid infusion of large volumes, Hypercon concentrates drugs so that even small doses produce the same effect. The two are complementary, and Hypercon allows Halozyme to expand into areas Enhanze has not covered.
◇ "The era of self-injection is coming" … defending against patent expirations
In particular, Halozyme is targeting the development of self-injection formulations that allow patients to inject therapies such as anticancer drugs at home without going to the hospital. The approach is to combine Hypercon with an autoinjector (a self-injection syringe).
Halozyme CEO Helen Torley said, "We see an opportunity to combine Hypercon with our company's small-volume autoinjector," adding, "In particular, for chronic diseases such as in immunology and neurology, at-home administration will be the direction of future treatment."
In addition, Halozyme's Enhanze patents are set to expire in the United States in 2027 and in Europe in 2029. Once the patents lapse in the United States and Europe, anyone can use Enhanze technology. The acquisition is seen as a strategy for Halozyme to maintain competitiveness even after the patents expire.
CEO Torley said, "This acquisition is a turning point for the company's growth," adding, "Hypercon is complementary to Enhanze and will deliver new value across the biopharmaceutical industry." Torley also said, "We expect to pass regulatory reviews without difficulty."
The company expects this transaction to expand partnerships with global pharmaceutical companies and increase royalty (running royalty) revenue. Patents related to Hypercon will be maintained into the 2040s. Halozyme expects two new drugs from Elektrofi's partners to enter clinical trials by the end of 2026 and projected that royalty revenue could begin as early as 2030.