HALO Rises Nearly 4% on Strong 2025 Preliminary Data and 2026 Guidance

Halozyme Therapeutics’ HALO shares climbed nearly 4%, following the release of preliminary full-year 2025 results on Jan. 28, which beat expectations. The company also raised its sales and EPS guidance for 2026.

HALO’s top line comprises product sales, royalty payments from Roche RHHBY for Phesgo, J&J JNJ for subcutaneous Darzalex and argenx’s Vyvgart Hytrulo, along with revenues under collaborative agreements related to its Enhanze technology with several large pharmaceutical companies.

Several companies use HALO’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. The company has 10 marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s Darzalex, Roche’s Phesgo and argenx’s Vyvgart Hytrulo.

Over the past year, shares of Halozyme have rallied 29.1% compared with the industry’s 15.6% growth.

HALO’s Preliminary 2025 Revenues Beat Expectations

Halozyme announced preliminary revenues for full-year 2025 in the range of $1.39 billion to $1.40 billion, up 36% to 38% year over year. The preliminary number surpassed the company’s previously issued guidance of $1.30 billion to $1.38 billion. The guidance range was also higher than the Zacks Consensus Estimate of $1.35 billion.

Royalty revenues are anticipated in the range of $865 to $870 million, representing year-over-year growth of 51% to 52%.

HALO Raises 2026 Guidance

Halozyme Therapeutics expects total revenues in the range of $1.71 billion to $1.81 billion for 2026, representing growth of 23% to 30% over projected 2025 total revenues. Revenues were earlier projected in the range of $1.43 billion to $1.53 billion.

Royalty revenues are now anticipated in the range of $1.13 billion to $1.17 billion, implying year over year growth of 30% to 35%. Previously, royalty revenues were expected to be $900 million-$940 million. The company expects to reach the milestone of surpassing $1 billion in royalty revenues in 2026, a year ahead of its prior expectations.

Adjusted earnings are now expected in the range of $7.75-$8.25 per share in 2026. Adjusted earnings were earlier projected in the band of $6.50-$7.00 per share. The EPS guidance does not consider the impact of potential future share repurchases.

Halozyme estimates adjusted EBITDA to be between $1.12 billion and $1.20 billion, up from the prior range of $1billion-$1.08 billion.

HALO’s raised adjusted EBITDA and earnings per share guidance included the financial impact of approximately $60 million related to the acquisition of Hypercon and Surf Bio technologies, which were not factored into the company’s earlier 2026 guidance. HALO broadened its technology base in December 2025 through the acquisition of Surf Bio, a biopharmaceutical company known for its innovative, hyperconcentration technology. Together with the prior acquisition of Elektrofi in November 2025, these additions bring innovative hyperconcentration technologies that are protected by intellectual property extending into the mid-2040s.

By the end of 2026, the company expects to have 15 partner programs in development and to sign three or more new drug-delivery licensing agreements.

HALO’s Zacks Rank & Key Pick

Halozyme Therapeutics currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the biotech sector is Alkermes ALKS, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Alkermes’ 2026 earnings per share have increased from $1.54 to $1.91. ALKS’ shares have risen 6.3% over the past year.

Alkermes’ earnings beat estimates in three quarters and missed in the remaining quarter, with the average earnings surprise being 4.58%.

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This article originally published on Zacks Investment Research (zacks.com).

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