Halozyme Therapeutics, Inc.

What they do

Halozyme licenses ENHANZE, built on its proprietary rHuPH20 enzyme, to biopharmaceutical companies that co-formulate it with their own compounds to enable subcutaneous delivery of drugs otherwise given intravenously. It earns upfront fees, milestone payments, sales of bulk rHuPH20 and royalties on approved partner products; it currently earns royalties on ten commercial products. The company also develops auto-injector drug-device combination products and is developing Hypercon and Surf Bio delivery technologies, following its acquisition of Elektrofi, renamed Halozyme Hypercon, Inc.

Revenue drivers

• ENHANZE royalties — Royalties on sales of ten approved commercial partner products, including five from Roche, two from Janssen, and one each from Takeda, argenx and BMS; royalty revenue was $308 million in Q2 2026, up 50% year-over-year.
• Licensing and collaboration fees — Upfront licensing fees and event/sales-based milestones under ENHANZE collaborations with Roche, Takeda, Pfizer, Janssen, AbbVie, Lilly, BMS, argenx, ViiV, Chugai, Acumen, Merus and Skye Bioscience, plus newer agreements with Vertex, Oruka, GSK, Incyte and an undisclosed partner.
• Bulk rHuPH20 product sales — Revenue from supplying bulk rHuPH20, the enzyme used in partner products co-formulated with ENHANZE.
• Hypercon technology licenses — Through the Elektrofi acquisition (renamed Halozyme Hypercon, Inc.), the company holds Hypercon collaboration and license agreements with Janssen, Lilly and argenx, a newer microparticle technology also licensed in 2026 collaborations.

Recent performance

Second quarter 2026 total revenue was $481.0 million, up 48% year-over-year, with royalty revenue of $308 million, up 50%. Adjusted EBITDA grew 46% to $329 million. Net income was $316.9 million for full year 2025, down from $444.1 million in 2024, and diluted EPS was $2.56 in 2025 versus $3.43 in 2024. Annual revenue grew every year from $443.3 million in 2021 to $1.40 billion in 2025, and quarterly revenue reached $481.0 million in the June 2026 quarter. The company repurchased 4.8 million shares for $332.8 million at an average price of $69.30 in Q2 2026.

Strategy

Halozyme is expanding its royalty base by signing new ENHANZE and Hypercon collaborations, with five signed year-to-date 2026 against a full-year goal of three, including agreements with Vertex, Oruka, GSK, Incyte and a first nucleic acid therapeutic licensee. It is broadening its delivery technology portfolio beyond ENHANZE with Hypercon and Surf Bio hyperconcentration technology. It is returning capital to shareholders under a May 2026 program to repurchase up to $1.0 billion of stock by December 31, 2028, with at least $400 million expected in 2026. The company also continues to develop auto-injector drug-device combination products.

Risks

• Regulatory approval risk — Partnered or proprietary product candidates may fail to receive or maintain FDA or foreign approval, delaying or eliminating royalty revenue from those products.
• Dependence on collaboration partners — If a key collaboration agreement is terminated or a partner fails to perform, or if third parties fail to supply essential components, the business could suffer.
• rHuPH20 and patent risk — Any adverse development regarding the rHuPH20 enzyme, or an inability to enforce ENHANZE patents, could impact multiple collaborations and revenues.
• Debt and dilution risk — Failure to meet obligations under its debt instruments could accelerate repayment, and conversion of its convertible notes could dilute existing stockholders; long-term debt was $1.94 billion at June 30, 2026.

Outlook

Management raised full-year 2026 guidance to total revenue of $1.835–$1.910 billion (31%–37% growth), royalty revenue of $1.220–$1.245 billion (41%–43% growth), adjusted EBITDA of $1.225–$1.280 billion and non-GAAP diluted EPS of $8.65–$9.00. The company exceeded its full-year 2026 goal of three new collaborations by signing five ENHANZE and Hypercon agreements year-to-date. It expects to buy back at least $400 million of shares in 2026 under its up-to-$1.0 billion repurchase program.