San Diego-based Halozyme Therapeutics announced Wednesday plans to acquire New Jersey-based Antares Pharma for $5.60 a share. The all-cash deal is valued at around $960 million and was unanimously approved by both companies’ boards of directors.
The deal will create a unique drug delivery and specialty product company, combining Halozyme’s enzyme-based technologies used with injectable molecules and fluids to aid in drug absorption with Antares’ highly regarded auto injector platform.
Halozyme also acquired two commercial products in the testosterone replacement therapy space as part of the deal.
“By adding these two distinct and growing revenue streams this transaction is going to add increases to our 2022 earnings and accelerate out top-line and bottom-line growth through 2027 with multiple additional growth drivers after that,” said Halozyme CEO Dr. Helen Torley. “What’s exciting is new opportunities to grow revenue and profitability, which is going to be a great story for our investors and for patients as we bring new options to the market.”
Investors reacted positively to the news. Antares stock (NASDAQ: ATRS) ended trading Wednesday at $5.58 a share, up 49.2% from the previous day’s close while Halozyme stock remained mostly flat, ending the day at $41.46 a share, down $.16 from previous day’s trading.
Antares CEO Robert F. Apple said the transaction will provide shareholders “attractive and certain value” and accelerate growth and new opportunities. “We look forward to working with the Halozyme team to complete the transaction and deliver best-in-class therapies and drug delivery solutions,” he added.
The deal is expected to close in the first half of 2022.