Halozyme Therapeutics, Inc. (HALO): A Bull Case Theory

We came across a bullish thesis on Halozyme Therapeutics, Inc. on 24K Research’s Substack. In this article, we will summarize the bulls’ thesis on HALO. Halozyme Therapeutics, Inc.'s share was trading at $70.98 as of February 20th. HALO’s trailing and forward P/E were 16.41 and 8.19, respectively according to Yahoo Finance.

Halozyme Therapeutics Inc (HALO), based in San Diego, California, is a pharmaceutical technology company that has built a high-margin, royalty-driven business by transforming complex IV biologics into simple, rapid subcutaneous injections. Its flagship ENHANZE platform has revolutionized treatments such as DARZALEX SC, Phesgo, and VYVGART Hytrulo, cutting multi-hour cancer and autoimmune therapies down to five-minute or patient-administerable doses.

This proprietary technology provides Halozyme with a durable, annuity-like revenue stream that is insulated from typical biotech R&D risk, while offering substantial earnings visibility. The company’s royalty model, tied to blockbuster drugs across multiple partners, is recurring, high-margin, and expected to potentially double by 2028, with Adjusted EBITDA margins projected to rise from 59–61% in 2024 to 74–75% by 2028, reflecting operational leverage and capital discipline.

Halozyme’s growth is further secured by an extensive ENHANZE pipeline, ongoing IV-to-SC conversions, and strong patent protection, which collectively ensure continued royalty expansion without reliance on speculative drug development. The Hypercon acquisition enhances long-term durability by enabling ultra-concentrated biologics for at-home auto-injectors, extending Halozyme’s intellectual property into the 2040s and positioning it as a critical enabler of decentralized, AI-assisted healthcare. This dual-platform strategy amplifies patient autonomy, improves care efficiency, and aligns Halozyme with the future of personalized biologics.

While risks include patent expiration, litigation, partner concentration, and the eventual 2030–2035 revenue cliff, Halozyme’s predictable, high-margin model, combined with a robust technology moat and disciplined execution, underpins a compelling investment case. With EPS projected to accelerate and royalties expanding, the company is positioned for strong earnings growth, making it a high-quality mid-cap compounder with a $75–$90 price target by 2026.

Previously, we covered a bullish thesis on CRISPR Therapeutics AG (CRSP) by MADD-Scientis in March 2025, which highlighted its CRISPR gene editing leadership, high-margin Casgevy therapy, strong institutional backing, and near-term clinical catalysts. CRSP’s stock price has appreciated by approximately 30.5% since our coverage. 24K Research shares a similar view but emphasizes Halozyme Therapeutics’ (HALO) recurring, royalty-driven revenue and patent-protected ENHANZE platform.

Halozyme Therapeutics, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held HALO at the end of the third quarter which was 40 in the previous quarter. While we acknowledge the risk and potential of HALO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HALO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.