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Halozyme
(NASDAQ:HALO)
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Rating:80Outperform
Price Target:
$99.00
▼(-9.44% Downside)
Action:Reiterated
Date:08/07/26
HALO scores well primarily on strong financial performance (high margins and standout free-cash-flow generation) and a positive earnings update with raised full-year guidance and robust royalty growth. Technicals support the uptrend, but overbought indicators temper the near-term setup, and valuation (P/E ~28 with no dividend yield provided) reduces the margin of safety.
Positive Factors
Strong free cash flow generation
Halozyme’s very large and persistent free cash flow provides durable optionality: it funds buybacks, supports milestone and R&D investments (e.g., Hypercon), and cushions timing volatility in milestone receipts. High cash conversion also signals earnings quality and long-term capital flexibility.
Negative Factors
Active multi-jurisdictional patent litigation
Ongoing infringement and PTAB disputes create real risk to future royalty streams and can trigger injunctions or carve-outs that materially alter revenue trajectories. Legal outcomes are uncertain and timing-lumpy, making multi-quarter royalty predictability less reliable for planning and valuation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Halozyme’s very large and persistent free cash flow provides durable optionality: it funds buybacks, supports milestone and R&D investments (e.g., Hypercon), and cushions timing volatility in milestone receipts. High cash conversion also signals earnings quality and long-term capital flexibility.
Read all positive factors
Halozyme Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and revealing strategic focus areas.
Analyzes income from different business areas, highlighting which segments drive growth and profitability, and revealing strategic focus areas.
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The Fly
The FlyHalozyme (HALO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.51B
Dividend YieldN/A
Average Volume (3M)2.12M
Price to Earnings (P/E)30.8
Beta (1Y)0.35
Revenue Growth41.15%
EPS Growth-21.44%
CountryUS
Employees423
SectorGeneral
Sector StrengthN/A
IndustryBiotechnology
Share Statistics
EPS (TTM)3.52
Shares Outstanding113,498,000
10 Day Avg. Volume1,513,017
30 Day Avg. Volume2,120,612
Financial Highlights & Ratios
PEG Ratio-1.04
Price to Book (P/B)165.22
Price to Sales (P/S)5.77
P/FCF Ratio12.51
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$97.14Price Target Upside-11.14% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)8.35
Revenue Forecast (FY)$1.84B
Halozyme Business Overview & Revenue Model
Company Description
Halozyme Therapeutics, Inc. is a biopharmaceutical company headquartered in San Diego, California, with operations spanning the United States, Switzerland, Ireland, Belgium, Japan, and other international markets. At its core is the proprietary EN...
How the Company Makes Money
Halozyme primarily makes money by licensing its ENHANZE® drug delivery technology to biopharmaceutical companies and earning payments tied to the development, approval, and commercial sales of partner products that use the technology. Key revenue ...
Halozyme Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call communicated a strong operational and financial quarter with record revenue, robust royalty growth (+50% YoY), raised guidance, accelerated deal-making (five CLAs including expansion into ADCs and nucleic acids), and progress on Hypercon as a second platform. Key risks were emphasized around active patent litigation (Merck/Alteogen), increased operating investments (R&D/SG&A), conversion/uptake gaps for certain launches (e.g., OPDIVO conversion at 15% vs. target), and some execution/financing uncertainty around Hypercon manufacturing. On balance, the positive commercial momentum, durable high-margin royalty streams, substantial cash generation, and the pipeline/deal cadence significantly outweigh the legal and execution risks noted on the call.Positive Updates
Record Quarterly Revenue and Strong YoY Growth
Total revenue of $481.0M in Q2 FY2026, up 48% year-over-year (from $325.7M), driven by strong royalty and collaboration revenue contributions.
Negative Updates
Active Litigation with Merck and Patent Uncertainty
Ongoing multi-jurisdictional litigation regarding Merck's use of MDASE technology (injunctions pursued in ~8 countries), PTAB PGR proceedings in the U.S. with appeals of four initial decisions and remaining decisions expected this fall — creates legal and timing uncertainty for future royalties.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong YoY Growth
Total revenue of $481.0M in Q2 FY2026, up 48% year-over-year (from $325.7M), driven by strong royalty and collaboration revenue contributions.
Read all positive updates
Company Guidance
Halozyme raised its 2026 outlook to total revenue of $1.835–$1.91 billion (up ~31%–37% YoY), royalty revenues of $1.22–$1.245 billion (up ~41%–43% YoY), adjusted EBITDA of $1.225–$1.28 billion (including ~ $60 million of planned Hypercon/SurfBio investment) and non‑GAAP diluted EPS of $8.65–$9.0; the raise reflects a midpoint benefit of roughly $112.5 million. The upgrade follows a record Q2 (total revenue $481M, +48% YoY; royalty revenue $307.7M, +50% YoY; adjusted EBITDA $328.8M; non‑GAAP EPS $2.28), first‑half royalties of about $548M (implying H2 royalty run‑rates of roughly $336–$348M per quarter), $332.8M of share repurchases in Q2 (vs. a $400M FY target) and management’s expectation of continued sequential H2 royalty growth driven by recently launched ENHANZE products and established contributors (DARZALEX subcu, VYVGART Hytrulo, Phesgo).Halozyme Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
62
Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.66B | 1.40B | 1.02B | 829.25M | 660.12M | 443.31M |
| Gross Profit | 1.30B | 1.09B | 855.91M | 636.89M | 520.81M | 361.90M |
| EBITDA | 714.03M | 573.05M | 656.54M | 451.95M | 315.51M | 259.04M |
| Net Income | 413.60M | 316.89M | 444.09M | 281.59M | 202.13M | 402.71M |
Balance Sheet | ||||||
| Total Assets | 2.58B | 2.53B | 2.06B | 1.73B | 1.84B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 231.00M | 142.82M | 596.07M | 336.00M | 362.79M | 740.92M |
| Total Debt | 2.15B | 2.14B | 1.51B | 1.50B | 1.51B | 876.67M |
| Total Liabilities | 2.43B | 2.48B | 1.70B | 1.65B | 1.67B | 907.48M |
| Stockholders Equity | 143.54M | 48.81M | 363.82M | 83.81M | 169.80M | 196.95M |
Cash Flow | ||||||
| Free Cash Flow | 806.22M | 644.59M | 468.37M | 373.28M | 235.30M | 297.98M |
| Operating Cash Flow | 818.60M | 651.56M | 479.06M | 388.57M | 240.11M | 299.44M |
| Investing Cash Flow | -605.72M | -545.81M | -262.72M | -96.91M | -487.00M | -406.29M |
| Financing Cash Flow | -110.75M | -85.17M | -218.86M | -407.99M | 362.37M | 77.86M |
Halozyme Technical Analysis
Positive
109.32
Price Trends
91.33
Positive
79.80
Positive
74.40
Positive
Market Momentum
5.31
Positive
66.17
Neutral
81.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HALO, the sentiment is Positive. The current price of 109.32 is above the 20-day moving average (MA) of 106.20, above the 50-day MA of 91.33, and above the 200-day MA of 74.40, indicating a bullish trend. The MACD of 5.31 indicates Positive momentum. The RSI at 66.17 is Neutral, neither overbought nor oversold. The STOCH value of 81.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HALO.
Halozyme Risk Analysis
Halozyme disclosed 40 risk factors in its most recent earnings report. Halozyme reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Halozyme Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $12.51B | 30.77 | 180.63% | ― | 41.15% | -21.44% | |
78 Outperform | $12.07B | 219.19 | 8.37% | ― | 16.02% | -59.24% | |
72 Outperform | $11.36B | 61.80 | 8.90% | 0.44% | -0.38% | 152.71% | |
61 Neutral | $58.11B | -17.59 | -39.20% | ― | -27.62% | -6.22% | |
57 Neutral | $25.23B | -109.16 | -6.12% | ― | -67.58% | 45.61% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | $9.65B | -16.39 | -110.84% | ― | -7.49% | -98.12% |
* General Sector Average
HALO
Halozyme
108.31
32.24
42.38%
CORT
Corcept Therapeutics
113.98
42.25
58.90%
IONS
Ionis Pharmaceuticals
56.71
-7.69
-11.94%
TECH
Bio-Techne
72.31
18.42
34.17%
MRNA
Moderna
140.33
115.86
473.48%
ROIV
Roivant Sciences
41.48
28.00
207.72%
Halozyme Corporate Events
Business Operations and StrategyExecutive/Board Changes
Halozyme announces key executive leadership transition and reorganization
Negative
Jul 2, 2026
On June 30, 2026, Halozyme Therapeutics, Inc. announced changes to its senior management structure as part of an organizational update. The company also reported that Cortney Caudill, who served as Senior Vice President and Chief Operating Officer...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.