USA – Halozyme Therapeutics has signed a definitive agreement to acquire all of Antares Pharma’s outstanding shares for nearly US$960 million in cash, or US$5.60 per share to further expand its drug delivery offerings.
Antares is a specialty pharmaceutical company that focuses on developing pharmaceutical products and technologies to meet the needs of patients in specific therapeutic areas.
Antares’ revenue increased by 23% to US$184 million last year. The company’s commercial portfolio includes the testosterone injection Xyosted, the Nocdurna tablet for nocturia caused by idiopathic nocturnal polyuria, and the recently FDA-approved Tlando, the first oral testosterone product without the need for titration.
Halozyme intends to fund the transaction with cash on hand as well as new debt.
The acquisition expands on Halozyme’s Enhanze drug delivery technology, which enables intravenous therapies to be administered through the skin by increasing the volume of biologics that can be injected subcutaneously.
The platform is used in J&J’s Darzalex Faspro multiple myeloma therapy and Roche’s Phesgo, a fixed-dose combination of Perjeta and Herceptin.
It’s also being used by a number of Big Pharma partners, including Bristol-Myers Squibb, Pfizer, and GlaxoSmithKline.
The addition of commercial products and Antares’ current autoinjector expertise will accelerate Halozyme’s approach to driving long-term revenue growth and value creation.
Antares’ auto-injector technologies are used in a variety of commercial products, including the Vibex device used in Teva’s generic EpiPen and generic Forteo.
The agreement also provides Halozyme with a suite of internal commercial products as well as a sales team.
Halozyme intends to expand on Antares’ capabilities and core platform technology to drive additional long-term revenue prospects, with additional intellectual property protections in place for the latter’s technology beyond 2030.
Antares’ suite of FDA-cleared products and partner products leveraging auto-injector technology was found to be commercially successful.
Halozyme sees the deal as having the potential to combine the two companies’ technologies to create a rapid subcutaneous drug delivery system with a large volume of administration up to 5mL, Halozyme CEO Helen Torley said during a conference call.
While the auto-injector platform is a natural fit for Halozyme, Antares’ commercial infrastructure represents a departure from the company’s current business model.
Based in San Diego After its lead pipeline drug failed in pancreatic cancer, Halozyme shifted its focus entirely to Enhanze in 2019. Since then, the biotech has relied on partner revenues and sales-related royalties to stay afloat.
Today, Antares has three commercial drugs and three internal development programs, as well as a sales force of 122 people.
Halozyme anticipates that the transaction will be completed before the end of June. The company confirmed that it expects revenues of US$530 million to US$560 million in 2022 and that it will carry out a US$750 million share buyback program.
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