Halozyme Raises Outlook as Revenue Growth Accelerates
The drug-delivery technology company lifted its 2026 revenue forecast by as much as $100 million.
Halozyme Therapeutics (HALO) reported faster second-quarter revenue growth as royalty income from VYVGART Hytrulo and DARZALEX SC strengthened.
Revenue rose 48% from a year earlier to $481.0 million, accelerating from 42% growth in the first quarter. Sales increased 28% sequentially. Net income climbed 39% to $229.9 million, while diluted earnings rose 43% to $1.90 a share.
Royalty revenue increased 50% to $307.7 million, compared with 43% growth in the prior quarter. Product sales grew 59% to $129.6 million, while collaborative-agreement revenue rose 13% to $43.7 million.
Higher sales carried additional costs. Cost of sales climbed 71% to $79.2 million, primarily because of increased bulk rHuPH20 sales. Operating income rose 42% to $287.7 million, while the operating margin narrowed to 59.8% from 62.2% as operating expenses increased 57%.
Acquisition-related spending contributed to the margin pressure. Intangible amortization increased 66% to $29.5 million following the November 2023 Elektrofi acquisition, and research-and-development expense rose 58% to $27.7 million, primarily because of Elektrofi and Surf Bio. Adjusted EBITDA increased 46% to $328.8 million, with its margin easing to 68.4% from 69.2%.
Halozyme now expects 2024 revenue of $1.835 billion to $1.910 billion, representing growth of 31% to 37%. Royalty revenue is projected at $1.220 billion to $1.245 billion, up 41% to 43%, while non-GAAP diluted EPS is expected at $8.65 to $9.00 a share.
The company signed five ENHANZE and Hypercon collaborations through July, exceeding its full-year goal of three. Halozyme also repurchased 4.8 million shares for $332.8 million during the quarter and completed its February 2024 authorization, while cash, restricted cash and marketable securities rose to $231.9 million at June 30.