Halozyme Raises 2026 Outlook After Record Royalty Quarter

The Tip Desk · November 5, 2026 · 4 min read

Third-quarter revenue reached $493 million, up 39% from a year earlier, and the company lifted full-year total-revenue guidance to $1.860 billion to $1.925 billion.

Halozyme Therapeutics (HALO), the biopharmaceutical company behind ENHANZE subcutaneous drug-delivery technology, reported third-quarter revenue of $493.0 million, up 39% from $354.3 million a year earlier, and raised its full-year 2026 financial outlook after another record royalty quarter.

The year-over-year pace slowed from the 48% increase to $481 million recorded in the second quarter. Royalty revenue, the bulk of the top line, was $341.0 million, up 44% from $236.0 million in the third quarter of 2025, after a 50% year-over-year rise to $308 million in the prior quarter. The company said the royalty increase was driven primarily by continued sales uptake of ENHANZE partner products launched since 2020, predominantly VYVGART Hytrulo by argenx, DARZALEX SC by Janssen, and Phesgo by Roche, plus contributions from other recently launched products.

Product sales, net, were $137.3 million, compared with $94.2 million a year earlier. Halozyme said the total-revenue increase was driven by royalty growth and higher product sales, primarily bulk rHuPH20. Revenues under collaborative agreements were $14.6 million.

Cost of sales was $82.5 million, compared with $55.2 million a year earlier. The company said the increase was primarily due to higher bulk rHuPH20 sales. Operating income was $295.0 million, compared with $217.9 million in the third quarter of 2025. Net income was $247.0 million, or $2.01 a share on a GAAP diluted basis, versus $175.2 million, or $1.43 a share, a year earlier. Adjusted EBITDA was $336.2 million. Non-GAAP diluted earnings were $2.39 a share.

Amortization of intangibles was $29.5 million, compared with $17.8 million a year earlier; the company said the increase was due to the November 2025 Elektrofi acquisition. Research and development expense was $27.8 million, compared with $17.3 million a year earlier; the company said the increase was primarily due to the Elektrofi and fourth-quarter 2025 Surf Bio acquisitions. Selling, general and administrative expense was $58.2 million, compared with $46.1 million a year earlier; the company said the increase was primarily due to higher consulting and professional fees, including litigation costs, Elektrofi, and higher compensation.

Cash, cash equivalents, restricted cash and marketable securities were $1.08 billion on September 30, 2026, compared with $145.4 million on December 31, 2025, driven by convertible-note issuance and operating cash generation. The company said it completed a $1.5 billion convertible-notes offering and $400 million of share repurchases in 2026. In the third quarter it bought about 0.8 million shares for $67.2 million at an average $79.47.

The company raised 2026 guidance from the ranges issued on August 6. It now expects full-year total revenue of $1.860 billion to $1.925 billion, growth of 33% to 38% over 2025, versus a prior range of $1.835 billion to $1.910 billion. Royalty revenue is now expected at $1.235 billion to $1.255 billion, growth of 42% to 45%. Adjusted EBITDA is now $1.240 billion to $1.290 billion, growth of 89% to 96%, including about $60 million of new Hypercon and Aerocon investments. Non-GAAP diluted EPS is now $8.75 to $9.05, growth of 111% to 118%.

During the quarter and in October, Halozyme expanded ENHANZE collaborations with argenx, Incyte and Janssen. argenx nominated two additional targets, bringing exclusive ENHANZE access to eight. Incyte agreed to evaluate a subcutaneous formulation of axatilimab with ENHANZE, with an upfront payment and potential milestones and royalties. Janssen added one oncology target. Three ENHANZE programs, one each with Pfizer, Incyte and argenx, advanced into Phase 1, bringing products in development to twelve.

In October, the specialized Dutch patent court of the Hague found Merck Sharp & Dohme B.V. infringing one of Halozyme’s MDASE patents and ordered it to refrain from manufacturing, offering, placing on the market and using, or importing or stocking Keytruda Qlex in Belgium, Denmark, France, Ireland, Italy, Sweden, Switzerland and the Netherlands. The court also rejected arguments that the patent is invalid.