On November 3, 2025 Halozyme Therapeutics, Inc. (NASDAQ: HALO) ("Halozyme" or the "Company") reported its financial and operating results for the third quarter ended September 30, 2025 and provided an update on its recent corporate activities.
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"Halozyme delivered another record quarter, with royalty revenue increasing 52% year-over-year to $236 million. This strong performance drove total revenue to a record $354 million, representing a 22% increase year-over-year. The continued success of our three established ENHANZE-enabled blockbuster therapies, DARZALEX SC, Phesgo, and VYVGART Hytrulo, highlights the strength of our royalty driven business model. Further expanding our near and long term opportunity, notable achievements this quarter include two new indication approvals: DARZALEX SC for smoldering multiple myeloma in Europe and the argenx VYVDURA pre-filled syringe in Japan for gMG and CIDP. These events result in achievement to date of 13 of our 15 growth catalysts announced in Q1, which include new product approvals, geographic expansion, and key reimbursement wins across major markets. We project achievement of the two remaining catalysts in Q4. Building on the progress to date, we project the revenue growth contribution of our four additional launched ENHANZE product, Ocrevus Zunuvo, Tecentriq Hybreza, Opdivo Qvantig and Rybrevant SC to increase in 2026 and beyond," commented Dr. Helen Torley, President and CEO of Halozyme.
"Based on our continued strong performance of our core ENHANZE technology, we are pleased to raise our guidance ranges, with royalty revenue growth of approximately 50% for the full year. As we look ahead, our planned acquisition of Elektrofi represents a significant opportunity to amplify our opportunity in subcutaneous drug delivery by introducing a complementary high-concentration technology that has three large biopharma partner agreements in place. With royalty contributions from Elektrofi’s Hypercon projected to begin in 2030, we are building a multi-platform engine for long-term growth, positioning Halozyme to deliver sustained value for patients, partners, and our shareholders," said Dr. Torley.
Halozyme also announced today a transition plan under which Nicole LaBrosse, Senior Vice President and Chief Financial Officer (CFO) will continue as CFO until a new Chief Financial Officer is hired, or until March 30, 2026, and then, depart to pursue a new professional opportunity. An external search is being initiated to identify the successor.
"I thank Nicole for her contributions over the past four years as we delivered on our growth strategy," added Dr. Torley. "We look forward to our next chapter of growth, one in which a diverse range of capital market transactions and M&A will play a key role."
Third Quarter and Recent Corporate Highlights:
•In September 2025, Halozyme agreed to acquire Elektrofi, Inc. ("Elektrofi"), a biopharmaceutical company with an ultra-high concentration microparticle technology for biologics, branded Hypercon. Under the terms of the Agreement and Plan of Merger, Halozyme will acquire Elektrofi for $750 million in upfront consideration and up to three $50 million milestone payments contingent upon three separate product regulatory approvals. The transaction is expected to close in the fourth quarter of 2025, subject to completion of antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
•In June 2025, Halozyme initiated the third $250 million share repurchase tranche under the $750 million approved program from February 2024. As of September 30, 2025, $92.3 million has been used to repurchase approximately 1.7 million shares at an average price of $52.89 per share.
Third Quarter and Recent Partner Highlights:
•In September 2025, argenx received approval from the Ministry of Health, Labour and Welfare in Japan for VYVDURA prefilled syringe for self-injection for the treatment of adult patients with generalized myasthenia gravis and adult patients with chronic inflammatory demyelinating polyneuropathy.
•In July 2025, Janssen announced the European Commission approved a new indication for DARZALEX SC as a monotherapy for the treatment of adult patients with smouldering multiple myeloma at high risk of developing multiple myeloma.
Third Quarter 2025 Financial Highlights:
•Revenue was $354.3 million, compared to $290.1 million in the third quarter of 2024. The 22% year-over-year increase was primarily driven by royalty revenue growth and an increase in product sales, partially offset by a decrease in milestone revenues.
Revenue included $236.0 million in royalties, an increase of 52% compared to $155.1 million in the third quarter of 2024, primarily driven by continued sales uptake of ENHANZE partner products that have launched since 2020, predominantly by VYVGART Hytrulo by argenx, DARZALEX SC by Janssen and Phesgo by Roche in all geographies.
•Cost of sales was $55.2 million, compared to $49.4 million in the third quarter of 2024. The increase in cost of sales was primarily due to an increase in product sales, material scrap and labor allocation initiatives.
•Amortization of intangibles expense remained flat at $17.8 million, compared to the third quarter of 2024.
•Research and development expense was $17.3 million, compared to $18.5 million in the third quarter of 2024. The decrease in research and development expense was primarily due to lower compensation expense driven by resource optimization and labor allocation initiatives, and timing of planned investments in ENHANZE related to the development of our new high-yield rHuPH20 manufacturing process.
•Selling, general and administrative expense was $46.1 million, compared to $41.2 million in the third quarter of 2024. The increase was primarily due to an increase in consulting and professional service fees, including litigation costs incurred in connection with a patent infringement litigation case and diligence costs incurred in support of the planned acquisition of Elektrofi, partially offset by lower compensation expense.
•Operating income was $217.9 million, compared to $163.2 million in the third quarter of 2024.
•Net income was $175.2 million, compared to $137.0 million in the third quarter of 2024.
•Non-GAAP net income was $206.8 million, compared to $165.2 million in the third quarter of 2024.
•EBITDA was $238.3 million, compared to $183.6 million in the third quarter of 2024. Adjusted EBITDA was $248.2 million, compared to $183.6 million in the third quarter of 2024.1
•GAAP diluted earnings per share was $1.43, compared to $1.05 in the third quarter of 2024. Non-GAAP diluted earnings per share was $1.72, compared to $1.27 in the third quarter of 2024.1
•Cash, cash equivalents and marketable securities were $702.0 million on September 30, 2025, compared to $596.1 million on December 31, 2024. The increase was primarily a result of cash generated from operations, partially offset by share repurchase activities.
Financial Outlook for 2025
The Company is raising its 2025 financial guidance ranges, which were last updated on August 5th, 2025 excluding the impact of the accounting treatment of the Elektrofi transaction.
For the full year 2025, the Company expects:
•Total revenue of $1,300 million to $1,375 million, representing growth of 28% to 35% over 2024 total revenue, primarily driven by increases in royalty revenue. Revenue from royalties of $850 million to $880 million, representing growth of 49% to 54% over 2024.
•Adjusted EBITDA of $885 million to $935 million, representing growth of 40% to 48% over 2024.
•Non-GAAP diluted earnings per share of $6.10 to $6.50, representing growth of 44% to 54% over 2024. The Company’s earnings per share guidance does not consider the impact of potential future share repurchases.
(Press release, Halozyme, NOV 3, 2025, View Source [SID1234659258])