Halozyme Therapeutics Q2 Earnings Call Highlights

Halozyme Therapeutics (NASDAQ:HALO) reported record second-quarter revenue and raised its full-year outlook, citing growth in royalty income from its ENHANZE drug-delivery platform, contributions from newer product launches and revenue from newly signed collaboration agreements.

Total revenue rose 48% year over year to $481 million in the second quarter, while royalty revenue increased 50% to $307.7 million. Net income rose 39% to $229.9 million, and adjusted EBITDA increased 46% to $328.8 million. GAAP diluted earnings per share was $1.90, compared with $1.33 a year earlier, while non-GAAP diluted EPS was $2.28, up from $1.54.

“The growing contributions of our recently launched ENHANZE products and the continued strong performance of DARZALEX Subcutaneous and VYVGART give us confidence in the 2026 to 2028 financial guidance and beyond,” President and CEO Helen Torley said during the company’s earnings call.

Royalty Growth Broadens Beyond Established Products

Halozyme said its royalty performance reflected continued sales growth from established ENHANZE-enabled products, including DARZALEX SC, VYVGART Hytrulo and PHESGO, along with rising contributions from newer launches including OCREVUS ZUNOVO, Opdivo Qvantig and RYBREVANT FASPRO.

Royalties from DARZALEX totaled $152.2 million, up 27% year over year. Johnson Johnson’s DARZALEX global sales exceeded $4 billion in the quarter, according to Halozyme, with virtually all global sales coming from the subcutaneous formulation using ENHANZE.

VYVGART Hytrulo royalty revenue rose 143% to $72.6 million. Total VYVGART brand sales reached $1.5 billion, an increase of 60% from the prior-year period. Halozyme said argenx reported that about 80% of U.S. patients using the VYVGART Hytrulo prefilled syringe during the quarter were new to the VYVGART franchise.

Other royalty revenue grew 85% to $54.4 million, driven by sales of recently launched products including OCREVUS SC, Opdivo Qvantig, RYBREVANT SC and TECENTRIQ subQ.

Torley said royalties from OCREVUS ZUNOVO, Opdivo Qvantig and RYBREVANT SC increased about 80% sequentially. Roche reported that 44,000 patients were receiving OCREVUS ZUNOVO, compared with 17,500 at the end of the fourth quarter of 2025. Bristol Myers Squibb reported a 15% subcutaneous conversion rate for Opdivo Qvantig and global sales of $261 million for the product in the quarter, according to Halozyme.

Five New Collaboration Agreements

The company signed four collaboration and licensing agreements in the second quarter and a fifth agreement in July. Three of the agreements involved ENHANZE, with GSK, Incyte and an undisclosed partner, while Vertex and Oruka entered Hypercon agreements.

The agreements generated $35.5 million of upfront collaboration revenue in the second quarter, approximately evenly divided between ENHANZE and Hypercon, Torley said.

Halozyme’s agreement with GSK includes use of ENHANZE with antibody-drug conjugates, while the confidential agreement covers a nucleic acid therapeutic. Torley said the company estimates there are at least 100 commercial and development-stage products across antibody-drug conjugates and nucleic acid therapies that could potentially benefit from ENHANZE.

Torley also said deal economics are driven more by whether a partner seeks exclusivity than by the size of the partner company. Halozyme expects both new partnership agreements and additional nominations by existing partners to support development-pipeline growth.

Hypercon Pipeline and Manufacturing Plans

Halozyme is positioning Hypercon as a second platform intended to support lower-volume subcutaneous administration through highly concentrated formulations. The company is preparing to supply clinical material for the first Hypercon clinical studies, which it expects to begin in the first half of 2027.

Torley said additional Hypercon clinical study starts could occur in the second half of 2027, with further activity possible in 2028. The company’s five existing Hypercon agreements cover up to 20 targets, she said. Halozyme projects the first two potential Hypercon launches could occur in 2030 and 2031 and continues to target about $1 billion in Hypercon royalty revenue in the mid-2030s. That forecast assumes between five and seven launches by that period.

The company is also evaluating investment in Hypercon manufacturing, although Torley said it has not finalized plans for the required investment or business model.

For ENHANZE, Halozyme said two new targets entered Phase I testing during the second quarter, bringing the number of development products to nine. The company expects to have up to 13 ENHANZE partner products in development by year-end 2026, with launches potentially beginning in 2029 and continuing over subsequent years.

Raised 2026 Outlook and Capital Allocation

Halozyme raised its 2026 guidance and now expects:

• Total revenue of $1.835 billion to $1.91 billion, representing 31% to 37% growth year over year.
• Royalty revenue of $1.22 billion to $1.245 billion, representing 41% to 43% growth.
• Adjusted EBITDA of $1.225 billion to $1.28 billion, including about $60 million of planned investment in Hypercon and Surf Bio.
• Non-GAAP diluted EPS of $8.65 to $9.00.

Chief Financial Officer Darren Snellgrove said the company expects royalty revenue to increase sequentially in the second half, supported in part by newer product launches such as RYBREVANT SC. Halozyme repurchased $332.8 million of stock during the second quarter against its $400 million full-year target.

On M, Snellgrove said the company continues to view acquisitions as part of its capital-allocation strategy when they add differentiated technology, new capabilities or future growth platforms. However, he said Halozyme is focused on organic growth in 2026 and that an acquisition is unlikely this year.

About Halozyme Therapeutics (NASDAQ:HALO)

Halozyme Therapeutics, Inc is a biopharmaceutical company headquartered in San Diego, California, that specializes in the development and commercialization of novel drug-delivery technologies. Founded in 1998, Halozyme focuses on enabling subcutaneous administration of biologic therapies through its proprietary platforms. The company's core mission is to improve patient access and convenience while maintaining efficacy and safety profiles comparable to or better than traditional routes of administration.

The company's flagship technology, ENHANZE®, is based on recombinant human hyaluronidase PH20 (rHuPH20), an enzyme that transiently degrades hyaluronan in the extracellular matrix.

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