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1. Company Snapshot

1.a. Company Description

Halozyme Therapeutics, Inc.operates as a biopharma technology platform company in the United States, Switzerland, Ireland, Belgium, Japan, and internationally.The company's products are based on the ENHANZE drug delivery technology, a patented recombinant human hyaluronidase enzyme (rHuPH20) that enables the subcutaneous delivery of injectable biologics, such as monoclonal antibodies and other therapeutic molecules, as well as small molecules and fluids.


Its flagship product is Hylenex recombinant, a formulation of rHuPH20 to facilitate subcutaneous fluid administration for achieving hydration to enhance the dispersion and absorption of other injected drugs in subcutaneous urography and to improve resorption of radiopaque agents.The company also develops Perjeta; RITUXAN HYCELA and MabThera SC for the treatment of non-Hodgkin lymphoma and chronic lymphocytic leukemia (CLL); RITUXAN SC for patients with CLL; and HYQVIA for the treatment of immunodeficiency disorders.In addition, it is developing Tecentriq for non-small cell lung cancer; OCREVUS for multiple sclerosis; DARZALEX for the treatment of patients with amyloidosis, smoldering myeloma, and multiple myeloma; nivolumab for the treatment of solid tumors; ARGX-113, a human neonatal Fc receptor; ARGX-117 to treat autoimmune diseases; and BMS-986179, an anti-CD-73 antibody.


The company has collaborations with F.Hoffmann-La Roche, Ltd.; Hoffmann-La Roche, Inc.; Baxalta US Inc.; Baxalta GmbH; Pfizer Inc.; Janssen Biotech, Inc.; AbbVie, Inc.; Eli Lilly and Company; Bristol-Myers Squibb Company; Alexion Pharma Holding; ARGENX BVBA; Horizon Therapeutics plc; National Institute of Allergy and Infectious Diseases; Centre for the AIDS Programme of Research in South Africa; and ViiV Healthcare Limited for small and large molecule targets for the treatment and prevention of HIV.Halozyme Therapeutics, Inc.


was founded in 1998 and is based in San Diego, California.

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1.b. Last Insights on HALO

Halozyme Therapeutics' recent performance was negatively impacted by disappointing Q4 earnings, with the company reporting a loss of $0.24 per share, versus the Zacks Consensus Estimate of $2.15. The company's Q4 loss was attributed to an acquisition charge, despite a 52% year-over-year surge in revenues fueled by royalties and product sales. Several institutional investors, including Fisher Asset Management LLC and Gabelli Funds LLC, reduced their stakes in the company. Additionally, the company's earnings call and recent financial guidance reiteration did not alleviate concerns.

1.c. Company Highlights

2. Halozyme's Strong Financial Performance and Growth Prospects

Halozyme reported a robust financial performance in 2025, with total revenue growing 38% to $1.4 billion, driven by a 52% year-over-year increase in royalty revenue to $867.8 million. The company's EPS came in at -$0.24, missing estimates of $2.15. The significant increase in royalty revenue was driven by the continued uptake of ENHANZE-enabled products, including DARZALEX SC, VYVGART Hytrulo, and PHESGO. The company's financial discipline is evident in its net debt to EBITDA ratio, which stood at 2.1x at the end of 2025, with expectations to de-lever to below 1x by the end of 2026.

Publication Date: Feb -19

📋 Highlights
  • Portfolio Expansion:: Acquired 2 new subcutaneous drug delivery technologies (Hypercon and hyperconcentration), increasing portfolio from 2 to 4 with IP extending into the mid-2040s.
  • Royalty Revenue Growth:: Full-year 2025 royalty revenue surged 52% to $868 million, driven by ENHANZE-enabled products like DARZALEX SC and VYVGART Hytrulo.
  • Financial Leverage:: Ended 2025 with 2.1x net debt to EBITDA, aiming to reduce to below 1x by 2026, while projecting total 2026 revenue of $1.71–$1.81 billion.
  • Hypercon Royalty Potential:: Anticipated $1 billion in Hypercon royalty revenue within 5 years of mid-2030s launches, extending royalty streams into the 2040s.
  • Development Pipeline:: 6 new ENHANZE programs and 2 Hypercon programs entering Phase I in 2026, growing the development portfolio to 36 products by 2028.

Drivers of Revenue Growth

The company's ENHANZE pipeline is expanding, with 6 new programs expected to enter Phase I in 2026, and the development portfolio is projected to grow to 36 products by 2028. The Hypercon technology is also expected to contribute to revenue growth, with 2 programs expected to enter Phase I testing by the end of 2026, and first approvals projected in the 2030-2031 timeframe. As Nicole LaBrosse, CFO, clarified, product sales from selling devices will be recognized similar to API sales, and royalties will be recognized when associated with these products.

Valuation and Growth Prospects

With a P/S Ratio of 6.17 and an EV/EBITDA of 14.36, the market is pricing in significant growth prospects for Halozyme. Analysts estimate revenue growth of 13.0% for the next year. The company's ROE of 92.67% and ROIC of 13.56% indicate a strong ability to generate returns on equity and invested capital. The net debt to EBITDA ratio is expected to improve, currently standing at 2.1x, with a negative net debt to EBITDA of -0.23 indicating a net cash position when considering EBITDA.

Future Outlook

Halozyme's guidance for 2026 is positive, with expected total revenue of $1.71 billion to $1.81 billion, representing year-over-year growth of 22% to 30%. Royalty revenues are expected to be $1.13 billion to $1.17 billion, representing year-over-year growth of 30% to 35%. The company's strong cash flow is expected to be deployed towards strategic M&A, maintaining financial discipline while investing in long-term value creation.

3. NewsRoom

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Halozyme Therapeutics, Inc. (HALO) Presents at The Citizens Life Sciences Conference 2026 Transcript

Mar -11

Source: seekingalpha.com

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Fieldview Capital Management LLC Makes New $785,000 Investment in Halozyme Therapeutics, Inc. $HALO

Mar -11

Source: defenseworld.net

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Halozyme Therapeutics, Inc. (HALO) Presents at Leerink Global Healthcare Conference 2026 Transcript

Mar -10

Source: seekingalpha.com

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U.S. FDA Approves TECVAYLI® in Combination with DARZALEX FASPRO® for Relapsed/Refractory Multiple Myeloma

Mar -06

Source: prnewswire.com

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NovelStem International (OTCMKTS:NSTM) and Halozyme Therapeutics (NASDAQ:HALO) Head to Head Contrast

Mar -06

Source: defenseworld.net

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Halozyme Therapeutics, Inc. (HALO) Presents at TD Cowen 46th Annual Health Care Conference Transcript

Mar -04

Source: seekingalpha.com

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Halozyme to Participate in Upcoming Investor Conferences

Feb -25

Source: prnewswire.com

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Can AST SpaceMobile's HALO Contract Strengthen Its Defense Footprint?

Feb -24

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.00%)

6. Segments

Enzymes and Devices

Expected Growth: 15%

Halozyme's Enzymes and Devices segment growth is driven by increasing adoption of its proprietary recombinant human hyaluronidase (rHuPH20) enzyme in oncology and ophthalmology, expansion into new therapeutic areas, and growing demand for its drug delivery devices. Additionally, partnerships with pharmaceutical companies, such as Roche and Pfizer, contribute to the segment's 15% growth.

7. Detailed Products

ENHANZE

ENHANZE is a proprietary recombinant human hyaluronidase enzyme that temporarily degrades hyaluronan, a chain of sugars found throughout the body, to facilitate the absorption of other injected drugs.

Rydapt

Rydapt is a drug used to treat adult patients with newly diagnosed acute myeloid leukemia (AML) who are FLT3 mutation-positive.

Herceptin SC

Herceptin SC is a subcutaneous injection of trastuzumab, a monoclonal antibody that targets HER2-positive breast cancer cells.

MabThera SC

MabThera SC is a subcutaneous injection of rituximab, a monoclonal antibody that targets CD20-positive B cells.

PH20

PH20 is a recombinant human hyaluronidase enzyme that temporarily degrades hyaluronan, enhancing the absorption of other injected drugs.

8. Halozyme Therapeutics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Halozyme Therapeutics, Inc. has a low threat of substitutes due to its unique enzyme-based products and proprietary technology, making it difficult for competitors to replicate.

Bargaining Power Of Customers

Halozyme Therapeutics, Inc. has a medium bargaining power of customers due to the presence of a few large pharmaceutical companies that partner with the company, giving them some negotiating power.

Bargaining Power Of Suppliers

Halozyme Therapeutics, Inc. has a low bargaining power of suppliers due to its ability to manufacture its own enzymes and control its supply chain.

Threat Of New Entrants

Halozyme Therapeutics, Inc. has a high threat of new entrants due to the growing demand for biologics and the increasing number of companies entering the market.

Intensity Of Rivalry

Halozyme Therapeutics, Inc. has a medium intensity of rivalry due to the presence of a few established players in the market, but the company's unique technology and partnerships give it a competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 94.81%
Debt Cost 3.95%
Equity Weight 5.19%
Equity Cost 10.25%
WACC 4.27%
Leverage 1827.33%

11. Quality Control: Halozyme Therapeutics, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Royalty Pharma

A-Score: 6.4/10

Value: 4.7

Growth: 3.8

Quality: 7.4

Yield: 4.0

Momentum: 9.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Halozyme Therapeutics

A-Score: 6.0/10

Value: 4.0

Growth: 9.1

Quality: 8.0

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Exelixis

A-Score: 5.9/10

Value: 4.1

Growth: 8.0

Quality: 9.4

Yield: 0.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Incyte

A-Score: 5.7/10

Value: 3.8

Growth: 5.4

Quality: 9.1

Yield: 0.0

Momentum: 9.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
United Therapeutics

A-Score: 5.6/10

Value: 3.9

Growth: 8.6

Quality: 7.9

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Arcellx

A-Score: 4.2/10

Value: 6.2

Growth: 5.8

Quality: 5.0

Yield: 0.0

Momentum: 4.5

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.48$

Current Price

66.48$

Potential

-0.00%

Expected Cash-Flows