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Halozyme
(NASDAQ:HALO)
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Rating:78Outperform
Price Target:
$149.00
▲(36.30% Upside)
Action:Reiterated
Date:09/23/26
HALO scores well primarily due to strong financial performance (high margins, solid revenue growth, and standout free-cash-flow generation) reinforced by an upbeat earnings call with raised 2026 guidance and strong royalty momentum. Technicals also support the score with a clear uptrend, though momentum is getting somewhat extended. The main offset is valuation, with a relatively high P/E and no dividend yield provided to improve the valuation profile.
Positive Factors
Royalty Growth and Diversification
Rapid royalty growth across six contributing products strengthens the recurring revenue base and reduces reliance on any single partnered medicine. Newer ENHANZE launches are adding to established contributors, supporting a broader commercial platform and more durable growth over coming quarters.
Negative Factors
Patent Litigation Risk
Active litigation creates uncertainty around the timing and durability of potential royalty outcomes tied to the disputed technology. Proceedings across several jurisdictions and continuing appeals could require management resources, delay resolution, or affect the expected economics of future licensing opportunities.
Read all positive and negative factors
Positive Factors
Negative Factors
Royalty Growth and Diversification
Rapid royalty growth across six contributing products strengthens the recurring revenue base and reduces reliance on any single partnered medicine. Newer ENHANZE launches are adding to established contributors, supporting a broader commercial platform and more durable growth over coming quarters.
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.
Data provided by:
The Fly
The FlyHalozyme (HALO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.86B
Dividend YieldN/A
Average Volume (3M)2.65M
Price to Earnings (P/E)37.2
Beta (1Y)0.23
Revenue Growth41.15%
EPS Growth-21.44%
CountryUS
Employees423
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)3.52
Shares Outstanding113,498,000
10 Day Avg. Volume2,159,971
30 Day Avg. Volume2,650,700
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 Cap0.77
Enterprise Value/Revenue6.85
Enterprise Value/Gross Profit8.32
Enterprise Value/Ebitda15.87
Forecast
1Y Price Target
$105.86Price Target Upside-3.17% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)8.61
Revenue Forecast (FY)$1.88B
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 pharmaceutical and biotechnology partners and earning payments tied to those partners’ products. Key revenue streams typically include: (1) Royalties on net sales...
Halozyme Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 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 | 1.37B | 1.17B | 855.91M | 636.89M | 520.81M | 361.90M |
| EBITDA | 718.44M | 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
113.70
Positive
97.99
Positive
83.37
Positive
Market Momentum
5.54
Negative
78.72
Negative
86.81
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 below the 20-day moving average (MA) of 120.02, below the 50-day MA of 113.70, and above the 200-day MA of 83.37, indicating a bullish trend. The MACD of 5.54 indicates Negative momentum. The RSI at 78.72 is Negative, neither overbought nor oversold. The STOCH value of 86.81 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 (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $14.86B | 37.19 | 180.63% | ― | 41.15% | -21.44% | |
68 Neutral | $6.43B | 124.61 | 5.22% | 5.35% | 1.03% | 8.35% | |
68 Neutral | $15.67B | 18.56 | 190.44% | ― | 128.41% | ― | |
65 Neutral | $1.95B | -110.30 | -426.33% | ― | 36.33% | 54.68% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $8.46B | -26.74 | -60.54% | ― | 16.85% | -80.39% | |
48 Neutral | $7.23B | -12.58 | -110.84% | ― | -7.49% | -98.12% |
* Healthcare Sector Average
HALO
Halozyme
130.91
65.72
100.81%
ARWR
Arrowhead Pharmaceuticals
59.90
17.51
41.31%
IONS
Ionis Pharmaceuticals
43.52
-30.78
-41.43%
LGND
Ligand Pharma
322.75
131.44
68.71%
ASND
Ascendis Pharma
251.27
49.67
24.64%
XERS
Xeris Pharmaceuticals
10.71
1.01
10.41%
Halozyme Corporate Events
Executive/Board Changes
Halozyme Therapeutics Adds James Daly to Board
Neutral
Sep 30, 2026
On September 28, 2026, Halozyme Therapeutics elected James Daly to its Board of Directors, placing him in the director class whose term expires at the 2029 annual meeting of stockholders. Daly was not initially assigned to any Board committee and ...
Business Operations and StrategyPrivate Placements and Financing
Halozyme Raises $1.5 Billion via Convertible Notes Offering
Positive
Sep 22, 2026
On September 22, 2026, Halozyme Therapeutics completed a $1.5 billion private offering of 1.50% Convertible Senior Notes due 2033, receiving about $1.47 billion in net proceeds after fees and expenses. The notes, sold to qualified institutional bu...
Business Operations and StrategyPrivate Placements and Financing
Halozyme Prices Upsized $1.3 Billion Convertible Notes Offering
Positive
Sep 18, 2026
On September 17, 2026, Halozyme Therapeutics, Inc. priced an upsized private offering of $1.3 billion in 1.50% convertible senior notes due October 1, 2033, with an option for initial purchasers to buy an additional $200 million, targeting qualifi...
Business Operations and StrategyPrivate Placements and Financing
Halozyme announces $1.05B convertible notes offering
Positive
Sep 16, 2026
On September 16, 2026, Halozyme Therapeutics, Inc. announced a proposed private offering of $1.05 billion in convertible senior notes due October 1, 2033, with an additional $150 million option for initial purchasers, aimed at qualified institutio...
Executive/Board Changes
Halozyme Appoints Dannielle Appelhans to Board of Directors
Neutral
Aug 18, 2026
On August 14, 2026, Halozyme Therapeutics elected Dannielle Appelhans to its Board of Directors, placing her in the director class with terms ending at the 2028 annual meeting of stockholders. She joins as a non-employee director with standard boa...
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.