HALO Surpasses Q2 Earnings and Revenue, Boosts 2025 Outlook

Strong Q2 Performance Drives Halozyme Therapeutics' Growth

Halozyme Therapeutics reported impressive second-quarter results for 2025, with adjusted earnings per share reaching $1.54, significantly exceeding the Zacks Consensus Estimate of $1.23. This represents a 69.2% year-over-year increase in earnings. The company also saw a substantial rise in total revenues, which climbed 41% to $325.7 million, surpassing the estimated $286 million.

The growth in revenue was largely driven by increased royalty payments from key partners. These included Roche for its product Phesgo and Johnson & Johnson for its subcutaneous Darzalex (daratumumab). Additionally, royalties from argenx’s Vyvgart Hytrulo contributed to the strong performance during the quarter.

Halozyme’s Enhanze technology plays a crucial role in the development of subcutaneous formulations for several drugs currently on the market. The company has multiple partnered drugs based on this technology, including J&J’s Darzalex and Roche’s Phesgo. This technological advantage continues to support its revenue streams and market position.

Shares of Halozyme experienced a 5.3% increase in after-hours trading following the release of these results. The positive momentum is also attributed to an improved financial outlook for 2025. Year-to-date, the stock has risen 27.2%, outperforming the industry's modest 1.9% gain.

Detailed Breakdown of Q2 Results

The company’s top line includes product sales, royalties, and revenues from collaborative agreements. In the second quarter, royalty revenues totaled $205.6 million, marking a 65% increase compared to the same period last year. This surge was primarily due to strong demand for products such as Phesgo, subcutaneous Darzalex, and Vyvgart Hytrulo, on which Halozyme earns royalties.

Royalty revenues exceeded expectations, surpassing the model estimate of $168.7 million. Product sales for the quarter were $81.5 million, up 3.3% from the previous year. The company’s two commercial proprietary products, Hylenex and Xyosted, contributed to these sales. However, product sales fell slightly short of the model estimate of $87.7 million.

Revenues under collaborative agreements rose 40.4% year over year to $38.6 million. Adjusted EBITDA for the quarter reached $225.5 million, reflecting a 64.6% increase from the prior-year quarter.

As of June 30, 2025, Halozyme had $548.2 million in cash, cash equivalents, and marketable securities, down from $747.9 million at the end of March 2025. This decrease may be attributed to ongoing investments and operational expenses.

Updated 2025 Guidance

Due to the continued success of key products, Halozyme has raised its full-year revenue guidance for 2025. Total revenues are now expected to range between $1.28 billion and $1.36 billion, up from the previous projection of $1.20 billion to $1.28 billion.

Royalty revenues are anticipated to fall within $825 to $860 million, compared to the earlier forecast of $750 to $785 million. Adjusted EBITDA is now expected to be between $865 and $915 million, up from $790 to $840 million. Adjusted earnings per share are projected to range from $6.00 to $6.40, compared to the previous estimate of $5.30 to $5.70.

It is important to note that the updated earnings guidance does not account for potential future share repurchases.

Zacks Rank and Investment Considerations

Halozyme currently holds a Zacks Rank of #3, indicating a "Hold" rating. Investors looking for higher-ranked biotech stocks might consider Immunocore, which carries a Zacks Rank of #1, signifying a "Strong Buy." Over the past 60 days, estimates for Immunocore’s 2025 loss per share have narrowed from 86 cents to 68 cents, while 2026 estimates have decreased from $1.34 to $1.10.

Immunocore has beaten earnings estimates in three of the last four quarters, with an average surprise of 76.18%. Its stock has gained 10.2% year to date, making it an attractive option for investors seeking growth in the biotech sector.