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Halozyme (HALO) to Acquire Antares for Auto Injector Platform
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Halozyme Therapeutics (HALO - Free Report) announced that it has entered into a definitive agreement with Antares Pharma to acquire the latter for approximately $960 million. The acquisition will add Antares’ commercial portfolio as well as its auto injector drug delivery technology to Halozyme’s portfolio. The auto injector platform will likely complement Halozyme’s ENHANZE technology used for developing subcutaneous injections.
Halozyme has offered to acquire all the outstanding shares of Antares for $5.60 per share in cash. The company intends to fund the acquisition through cash at hand as well as through new debt sources.
The acquisition is expected to be completed in the first half of 2022. Halozyme stated that the acquisition will be accretive immediately to revenues as well as adjusted net income. However, the company maintained its previous guidance of $530 million to $560 million for revenues in 2022.
Please note that Antares has a robust portfolio of partnered products, which have generated revenues of nearly $184 million in 2021. Revenues increased almost 23% in 2021 compared with 20% in 2020. The strong growth in Antares revenues suggests that it will accelerate Halozyme’s top-line growth. Halozyme believes that the Antares acquisition has the potential to accelerate financial growth through 2027 and beyond.
We note that Halozyme’s promising ENHANZE drug-delivery technology has attracted several partners who are developing a subcutaneous formulation of their pipeline candidate or commercialized drugs. Halozyme’s partners have more than 60 therapeutic targets under development in aggregate. There are five partnered drugs that are commercialized and generating royalties for Halozyme.
Antares’ auto injector platform business is expected to complement the ENHANZE technology. It is expected to offer broad licensing opportunities, boosting prospects of higher royalties and milestone payments. The platform has the potential to develop partnered drugs, which can cater to a spectrum of market segments, representing multiple tens of billions of dollars in estimated peak sales. Halozyme is confident that the auto injector platform will help in driving long-term, durable revenue growth and value creation.
Shares of Halozyme have gained 3.1% so far this year against the industry’s decrease of 14%.
Image Source: Zacks Investment Research
Apart from this acquisition, Halozyme has been active on the partnership front in the past few quarters. Last year, Halozyme and ViiV Healthcare, a joint venture between Pfizer (PFE - Free Report) and GlaxoSmithKline (GSK - Free Report) for HIV therapies, signed a global collaboration and license agreement. Per this agreement, Pfizer and Glaxo’s ViiV Healthcare will develop a subcutaneous formulation of its ultra-long-acting medicines (drugs with dosing intervals of three months or longer) for treating HIV.
Halozyme received an upfront payment of $40 million and will receive up to $175 million per target in milestone payment from Pfizer and Glaxo’s joint venture.
Last month, Halozyme and Japan-based Chugai Pharmaceutical entered into a global collaboration and license agreement for developing a Chugai drug candidate using Halozyme's ENHANZE drug delivery technology.
Per the agreement, Chugai will gain exclusive access to the ENHANZE technology for developing a subcutaneous formulation of a pipeline candidate for an upfront payment of $25 million and up to $160 million in milestone payments.
The acquisition of Antares may attract more new partners looking to develop an auto injector for convenient delivery of their drug or pipeline candidates.
Image: Bigstock
Halozyme (HALO) to Acquire Antares for Auto Injector Platform
Halozyme Therapeutics (HALO - Free Report) announced that it has entered into a definitive agreement with Antares Pharma to acquire the latter for approximately $960 million. The acquisition will add Antares’ commercial portfolio as well as its auto injector drug delivery technology to Halozyme’s portfolio. The auto injector platform will likely complement Halozyme’s ENHANZE technology used for developing subcutaneous injections.
Halozyme has offered to acquire all the outstanding shares of Antares for $5.60 per share in cash. The company intends to fund the acquisition through cash at hand as well as through new debt sources.
The acquisition is expected to be completed in the first half of 2022. Halozyme stated that the acquisition will be accretive immediately to revenues as well as adjusted net income. However, the company maintained its previous guidance of $530 million to $560 million for revenues in 2022.
Please note that Antares has a robust portfolio of partnered products, which have generated revenues of nearly $184 million in 2021. Revenues increased almost 23% in 2021 compared with 20% in 2020. The strong growth in Antares revenues suggests that it will accelerate Halozyme’s top-line growth. Halozyme believes that the Antares acquisition has the potential to accelerate financial growth through 2027 and beyond.
We note that Halozyme’s promising ENHANZE drug-delivery technology has attracted several partners who are developing a subcutaneous formulation of their pipeline candidate or commercialized drugs. Halozyme’s partners have more than 60 therapeutic targets under development in aggregate. There are five partnered drugs that are commercialized and generating royalties for Halozyme.
Antares’ auto injector platform business is expected to complement the ENHANZE technology. It is expected to offer broad licensing opportunities, boosting prospects of higher royalties and milestone payments. The platform has the potential to develop partnered drugs, which can cater to a spectrum of market segments, representing multiple tens of billions of dollars in estimated peak sales. Halozyme is confident that the auto injector platform will help in driving long-term, durable revenue growth and value creation.
Shares of Halozyme have gained 3.1% so far this year against the industry’s decrease of 14%.
Image Source: Zacks Investment Research
Apart from this acquisition, Halozyme has been active on the partnership front in the past few quarters. Last year, Halozyme and ViiV Healthcare, a joint venture between Pfizer (PFE - Free Report) and GlaxoSmithKline (GSK - Free Report) for HIV therapies, signed a global collaboration and license agreement. Per this agreement, Pfizer and Glaxo’s ViiV Healthcare will develop a subcutaneous formulation of its ultra-long-acting medicines (drugs with dosing intervals of three months or longer) for treating HIV.
Halozyme received an upfront payment of $40 million and will receive up to $175 million per target in milestone payment from Pfizer and Glaxo’s joint venture.
Last month, Halozyme and Japan-based Chugai Pharmaceutical entered into a global collaboration and license agreement for developing a Chugai drug candidate using Halozyme's ENHANZE drug delivery technology.
Per the agreement, Chugai will gain exclusive access to the ENHANZE technology for developing a subcutaneous formulation of a pipeline candidate for an upfront payment of $25 million and up to $160 million in milestone payments.
The acquisition of Antares may attract more new partners looking to develop an auto injector for convenient delivery of their drug or pipeline candidates.
Halozyme Therapeutics, Inc. Price
Halozyme Therapeutics, Inc. price | Halozyme Therapeutics, Inc. Quote
Zacks Rank
Halozyme currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.