Antares Pharma stock soars 49% on ~$1B acquisition deal by Halozyme

Apr. 13, 2022 5:47 AM ETHalozyme Therapeutics, Inc. (HALO)By: Ravikash, SA News Editor27 Comments

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Halozyme Therapeutics (NASDAQ:HALO) is acquiring Antares Pharma (NASDAQ:ATRS) for ~$960M.

Shares of Antares rose +47.33% to $5.51 pre-market April 13.

San Diego-based Halozyme will pay $5.60 per share in cash, valuing Ewing, N.J.-based Antares at ~$960M. Halozyme will begin a cash tender offer.

Antares develops therapeutic products using its drug delivery systems. In March, the company received full FDA approval for its oral testosterone replacement therapy TLANDO. The company has plans to launch the drug in Q2 this year.

Halozyme said Antares consists of a royalty revenue generating auto-injector platform business that offers broad licensing opportunity, and a commercial business, with three proprietary commercial products.

Halozyme already owns a drug-delivery product called Enhanze and has licensing deal with Pfizer and Bristol-Myers Squibb, among others.

"The addition of Antares, particularly with its best-in-class auto-injector platform and specialty commercial business, augments Halozyme's strategy, further strengthens our position as a leading drug delivery company and extends our strategy to include specialty products," said Halozyme President and CEO Helen Torley.

Halozyme intends to finance the deal using existing cash on hand and new sources of debt.

Halozyme said the transaction is expected to be immediately accretive to revenue and non-GAAP earnings in 2022 and anticipated to accelerate top- and bottom-line growth and enhance cash flow generation through 2027.

The transaction is expected to close in H1 2022, subject to conditions, including tender of shares by a majority of Antares' outstanding common stockholders, and U.S. anti-trust clearance, among other things.

Halozyme noted that it was reaffirming its 2022 guidance and its commitment to the three-year $750M share buyback program.

Shares of Antares ended April 13 +49.2% to $5.58

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