HALO Stock Up on Q1 Earnings and Revenue Beat, Raised 2025 View

Halozyme Therapeutics HALO reported first-quarter 2025 adjusted earnings of $1.11 per share, which comprehensively beat the Zacks Consensus Estimate of 95 cents. Earnings rose 41% year over year.

Total revenues in the first quarter increased 35% year over year to $264.9 million. Revenues too surpassed the Zacks Consensus Estimate of $239 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The top-line growth was primarily driven by higher royalty payments from Roche RHHBY for Phesgo and J&J JNJ for subcutaneous Darzalex (daratumumab) as well as an increase in sales of bulk rHuPH20 during the quarter.

Several companies use HALO’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. Halozyme now has several marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s Darzalex and Roche’s Phesgo.

Shares of Halozyme were up 6.5% in after-hours trading on May 6, owing to the better-than-expected results as well as the increased financial outlook for 2025.

Year to date, shares of Halozyme have rallied 24.2% against the industry’s decline of 2.8%.

HALO’s Q1 Results in Detail

Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.

Royalty revenues totaled $168.2 million in the first quarter, up 39% from the year-ago quarter’s level. This was mainly due to the robust demand for Phesgo, subcutaneous Darzalex and Vyvgart Hytrulo on which it earns royalties. Royalty revenues beat our model estimate of $153.3 million.

Product sales were $78 million in the first quarter, up 33.1% from the year-ago quarter’s level. HALO has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022. Product sales beat our model estimate of $65.7 million.

Revenues under collaborative agreements were $18.6 million in the first quarter, increasing 11.4% on a year-over-year basis.

Adjusted EBITDA was $162 million in the first quarter, reflecting a 40% increase from the prior-year quarter.

Halozyme had cash, cash equivalents and marketable securities of $747.9 million as of March 31, 2025, compared with $596.1 million as of Dec. 31, 2024.

HALO's 2025 Guidance Raised

Owing to increased royalty revenues due to the continued strong growth of JNJ’s Darzalex SC and RHHBY’s Phesgo and the robust growth of VYVGART Hytrulo, the company raised its total revenue guidance for 2025.

Total revenues are now expected in the range of $1.20 billion to $1.28 billion compared with the earlier projection of $1.15 billion to $1.22 billion.

Royalty revenues are now anticipated in the range of $750-$785 million, compared with the previous expectation of $725-$750 million.

Adjusted EBITDA is now expected in the band of $790-$840 million, compared with the earlier expectation of $755-$805 million.

Adjusted earnings are now expected in the range of $5.30-$5.70 per share in 2025 versus the previous projection of $4.95-$5.35 per share.

Halozyme’s earnings per share guidance does not consider the impact of potential future share repurchases.

Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise

Halozyme Therapeutics, Inc. price-consensus-eps-surprise-chart | Halozyme Therapeutics, Inc. Quote

HALO's Zacks Rank & Stock to Consider

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

A better-ranked stock in the biotech sector is ANI Pharmaceuticals, Inc. ANIP, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $6.30 to $6.36 for 2025. During the same time, earnings per share estimates for 2026 have increased from $6.85 to $7.14. Year to date, shares of ANIP have rallied 27.2%.

ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.32%.

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

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