PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Halozyme Therapeutics, Inc.'s unaudited condensed consolidated financial statements for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of income, comprehensive income, cash flows, and stockholders' equity, along with detailed notes explaining accounting policies, fair value measurements, revenue recognition, balance sheet items, goodwill, intangible assets, long-term debt, share-based compensation, earnings per share, and commitments [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets show a slight decrease in total assets and stockholders' equity from December 31, 2024, to June 30, 2025, primarily due to a reduction in cash and cash equivalents and accumulated other comprehensive income (loss), while liabilities saw a modest increase **Condensed Consolidated Balance Sheets (In thousands):** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total assets | $2,053,899 | $2,063,477 | | Total liabilities | $1,721,151 | $1,699,656 | | Total stockholders' equity | $332,748 | $363,821 | | Cash and cash equivalents | $61,861 | $115,850 | | Marketable securities, available-for-sale | $486,316 | $480,224 | | Accounts receivable, net and contract assets | $316,339 | $308,455 | | Inventories | $181,505 | $141,860 | | Long-term debt, net | $1,509,100 | $1,505,798 | - Cash and cash equivalents decreased by **$53,989 thousand** from December 31, 2024, to June 30, 2025[9](index=9&type=chunk) - Total stockholders' equity decreased by **$31,073 thousand**, primarily due to accumulated other comprehensive loss[9](index=9&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The Condensed Consolidated Statements of Income show significant revenue and net income growth for both the three and six months ended June 30, 2025, compared to the same periods in 2024, driven primarily by increased royalties and product sales **Condensed Consolidated Statements of Income (In thousands, except per share amounts):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $325,719 | $231,353 | $590,580 | $427,232 | | Operating income | $202,441 | $117,235 | $343,976 | $212,777 | | Net income | $165,160 | $93,245 | $283,255 | $170,068 | | Basic EPS | $1.36 | $0.73 | $2.32 | $1.34 | | Diluted EPS | $1.33 | $0.72 | $2.26 | $1.32 | - Total revenues increased by **40.8%** for the three months ended June 30, 2025, and by **38.2%** for the six months ended June 30, 2025, compared to the respective prior year periods[11](index=11&type=chunk) - Net income increased by **77.1%** for the three months ended June 30, 2025, and by **66.5%** for the six months ended June 30, 2025, year-over-year[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The Condensed Consolidated Statements of Comprehensive Income show a significant increase in comprehensive income for both the three and six months ended June 30, 2025, compared to 2024, despite unrealized losses on derivative instruments in 2025 **Condensed Consolidated Statements of Comprehensive Income (In thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $165,160 | $93,245 | $283,255 | $170,068 | | Unrealized (loss) gain on derivative instruments, net | $(27,047) | $76 | $(34,270) | $8,691 | | Comprehensive income | $140,170 | $92,663 | $251,023 | $177,278 | - Comprehensive income increased by **51.3%** for the three months ended June 30, 2025, and by **41.6%** for the six months ended June 30, 2025, year-over-year[14](index=14&type=chunk) - Unrealized loss on derivative instruments significantly impacted comprehensive income in 2025, contrasting with a gain in 2024[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows show a net decrease in cash and cash equivalents for the six months ended June 30, 2025, primarily due to significant share repurchases in financing activities, despite strong cash generation from operating activities **Condensed Consolidated Statements of Cash Flows (In thousands):** | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $253,932 | $185,221 | | Net cash used in investing activities | $(5,634) | $(124,720) | | Net cash (used in) provided by financing activities | $(302,287) | $8,993 | | Net (decrease) increase in cash and cash equivalents | $(53,989) | $69,494 | | Cash and cash equivalents at end of period | $61,861 | $187,864 | - Net cash provided by operating activities increased by **$68,711 thousand (37.1%)** for the six months ended June 30, 2025, compared to the same period in 2024[17](index=17&type=chunk)[220](index=220&type=chunk) - Net cash used in financing activities significantly increased to **$(302,287) thousand** in 2025, primarily due to **$303.5 million** in common stock repurchases[17](index=17&type=chunk)[222](index=222&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) The Condensed Consolidated Statements of Stockholders' Equity show a decrease in total stockholders' equity from December 31, 2024, to June 30, 2025, primarily driven by significant share repurchases and other comprehensive loss, partially offset by net income and share-based compensation **Condensed Consolidated Statements of Stockholders' Equity (In thousands):** | Item | Balance as of Dec 31, 2024 | Balance as of Jun 30, 2025 | | :-------------------------------- | :------------------------- | :------------------------- | | Total Stockholders' Equity | $363,821 | $332,748 | | Net income | $283,255 | $283,255 | | Repurchase of common stock | $(306,132) | $(306,132) | | Other comprehensive income (loss) | $(32,232) | $(32,232) | | Share-based compensation expense | $22,834 | $22,834 | - Total stockholders' equity decreased by **$31,073 thousand** from December 31, 2024, to June 30, 2025[20](index=20&type=chunk) - Repurchase of common stock amounted to **$306,132 thousand** for the six months ended June 30, 2025, significantly impacting equity[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies, financial instrument fair value measurements, revenue recognition methods, and specific balance sheet items, also covering goodwill and intangible assets, long-term debt, stockholders' equity activities including share-based compensation and repurchases, earnings per share calculations, and commitments and contingencies [1. Organization and Business](index=8&type=section&id=1.%20Organization%20and%20Business) Halozyme Therapeutics, Inc. is a biopharmaceutical company focused on improving patient experiences and outcomes through its ENHANZE drug delivery technology (rHuPH20) for subcutaneous drug delivery and advanced auto-injector technologies - Halozyme's core business involves the ENHANZE drug delivery technology (rHuPH20) for subcutaneous drug delivery, licensed to biopharmaceutical companies[23](index=23&type=chunk) - The company earns royalties, event and sales-based milestone payments, and revenues from bulk rHuPH20 sales from its ENHANZE collaborations[24](index=24&type=chunk) - Halozyme currently earns royalties from **10 commercial products**, including five from Roche, two from Janssen, and one each from Takeda, argenx, and BMS collaborations[24](index=24&type=chunk) - Proprietary commercial products include Hylenex (rHuPH20) and XYOSTED (auto-injector technology)[25](index=25&type=chunk) [2. Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines Halozyme's key accounting policies, including the basis of presentation for interim unaudited condensed consolidated financial statements, use of estimates, classification and valuation of cash equivalents and marketable securities, fair value measurements, accounting for accounts receivable and contract assets, inventories, leases, property and equipment, comprehensive income, convertible notes, cash flow hedges for currency risks, business combinations, goodwill, intangible assets, and revenue recognition, detailing the company's single operating segment and recent accounting pronouncements - The company operates as a single operating segment, with the CEO reviewing results on an aggregate basis[94](index=94&type=chunk)[95](index=95&type=chunk) - Halozyme uses cash flow hedging to mitigate foreign currency exchange risk for forecasted Swiss franc-denominated royalty revenue, with all hedges determined to be highly effective as of June 30, 2025[42](index=42&type=chunk)[43](index=43&type=chunk) - Revenue is recognized when promised goods or services are transferred to customers, with specific five-step guidance applied to collaborative agreements and product sales[53](index=53&type=chunk) - New accounting standards, ASU 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation), are being evaluated for their impact on financial statements, with effective dates in 2025 and 2026/2027 respectively[96](index=96&type=chunk)[98](index=98&type=chunk) [3. Fair Value Measurement](index=19&type=section&id=3.%20Fair%20Value%20Measurement) This section details the fair value measurement of Halozyme's financial instruments, primarily available-for-sale marketable securities and cash equivalents, categorized using the three-tier fair value hierarchy, with **$486.3 million** in marketable securities as of June 30, 2025, and derivative liabilities for currency hedging contracts **Available-for-sale marketable securities (In thousands):** | Security Type | June 30, 2025 Estimated Fair Value | December 31, 2024 Estimated Fair Value | | :-------------------------------- | :--------------------------------- | :--------------------------------- | | Corporate debt securities | $130,893 | $102,575 | | U.S. treasury securities | $337,705 | $367,570 | | Agency bonds | $9,824 | $9,828 | | Commercial paper | $7,894 | $0 | | Total marketable securities | $486,316 | $480,224 | - As of June 30, 2025, **27 available-for-sale marketable securities** with a fair market value of **$280.8 million** were in a gross unrealized loss position of **$0.3 million**, but no credit loss is expected[99](index=99&type=chunk) **Fair Value Hierarchy of Cash Equivalents and Marketable Securities (In thousands) as of June 30, 2025:** | Asset Type | Level 1 | Level 2 | Total Estimated Fair Value | | :-------------------------------- | :------ | :------ | :------------------------- | | Money market funds | $4,977 | $0 | $4,977 | | Corporate debt securities | $0 | $130,893 | $130,893 | | U.S. treasury securities | $337,705 | $0 | $337,705 | | Agency bonds | $9,824 | $0 | $9,824 | | Commercial paper | $0 | $7,894 | $7,894 | | Currency hedging contracts (Liabilities) | $0 | $34,795 | $34,795 | [4. Revenue](index=21&type=section&id=4.%20Revenue) Halozyme's revenue streams include royalties, product sales (proprietary, bulk rHuPH20, and device partnered), and revenues under collaborative agreements (upfront license fees, milestones, and device licensing/development), with significant revenue recognized from licenses granted in prior periods, and accounts receivable and contract assets reflecting amounts due from partners **Disaggregated Revenues (In thousands):** | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Royalties | $205,639 | $124,918 | $373,831 | $245,511 | | Product sales, net | $81,510 | $78,886 | $159,551 | $137,469 | | Revenues under collaborative agreements | $38,570 | $27,549 | $57,198 | $44,252 | | Total revenues | $325,719 | $231,353 | $590,580 | $427,232 | - For the three months ended June 30, 2025, royalties increased by **64.6%** and revenues under collaborative agreements increased by **40.0%** year-over-year[103](index=103&type=chunk) - For the six months ended June 30, 2025, royalties increased by **52.3%** and product sales, net increased by **16.1%** year-over-year[103](index=103&type=chunk) **Accounts Receivable, Net, Other Contract Assets and Deferred Revenues (In thousands):** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Accounts receivable, net | $315,073 | $288,204 | | Other contract assets | $1,266 | $20,251 | | Deferred revenues | $8,373 | $10,343 | [5. Certain Balance Sheet Items](index=22&type=section&id=5.%20Certain%20Balance%20Sheet%20Items) This section provides a detailed breakdown of specific balance sheet items, including accounts receivable, inventories, prepaid expenses and other assets, property and equipment, and accrued expenses, highlighting changes between June 30, 2025, and December 31, 2024 **Accounts Receivable, Net and Contract Assets (In thousands):** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Royalty payments | $203,070 | $164,348 | | Other product sales | $61,132 | $65,542 | | Contract assets | $1,266 | $20,251 | | Total accounts receivable, net and contract assets | $316,339 | $308,455 | **Inventories (In thousands):** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Raw materials | $17,785 | $24,015 | | Work-in-process | $30,932 | $30,169 | | Finished goods | $164,871 | $142,944 | | Total inventories, current | $181,505 | $141,860 | **Accrued Expenses (In thousands):** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Accrued compensation and payroll taxes | $12,365 | $24,400 | | Taxes payable | $24,959 | $30,995 | | Product returns and sales allowance | $55,064 | $54,588 | | Other accrued expenses | $62,041 | $26,239 | | Lease liability | $28,970 | $30,705 | | Total accrued expenses, current | $115,591 | $128,851 | [6. Goodwill and Intangible Assets, net](index=24&type=section&id=6.%20Goodwill%20and%20Intangible%20Assets%2C%20net) This section details the company's goodwill and intangible assets, with goodwill remaining stable at **$416.8 million**, and finite-lived intangible assets, primarily auto-injector technology and XYOSTED product rights, having a net carrying value of **$317.6 million** as of June 30, 2025, with an estimated future annual amortization schedule provided **Goodwill and Intangible Assets, net (In thousands):** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Goodwill | $416,821 | $416,821 | | Total finite-lived intangibles, net | $317,606 | $317,606 (implied from total intangibles) | | ATRS-1902 (IPR&D) | $48,700 | $48,700 (implied from total intangibles) | | Total intangibles, net | $366,306 | $401,830 | **Estimated Future Annual Amortization of Finite-Lived Intangible Assets (In thousands):** | Year | Amortization Expense | | :-------------------------------- | :------------------- | | Remainder of 2025 | $35,525 | | 2026 | $71,049 | | 2027 | $71,049 | | 2028 | $71,049 | | 2029 | $36,313 | | Thereafter | $32,621 | | Total | $317,606 | [7. Long-Term Debt, Net](index=25&type=section&id=7.%20Long-Term%20Debt%2C%20Net) This section details Halozyme's long-term debt, primarily consisting of **1.00% Convertible Senior Notes due 2028 ($720.0 million principal)** and **0.25% Convertible Senior Notes due 2027 ($805.0 million principal)**, outlining their terms, conversion features, and associated capped call transactions, along with the company's revolving credit and term loan facilities, noting that neither series of Convertible Notes was convertible and the Revolving Credit Facility was undrawn as of June 30, 2025 **Net Carrying Amounts and Fair Value of Convertible Notes (In thousands):** | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | 2027 Convertible Notes (Principal) | $805,000 | $805,000 | | 2028 Convertible Notes (Principal) | $720,000 | $720,000 | | Total principal amount | $1,525,000 | $1,525,000 | | Total carrying amount | $1,509,100 | $1,505,798 | | Total fair value of outstanding notes | $1,627,750 | $1,549,100 | **Interest Expense and Effective Interest Rates (In thousands):** | Item | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :-------------------------------- | :------------------------------- | :----------------------------- | | Total coupon interest | $2,303 | $4,606 | | Total amortization of debt discount | $1,653 | $3,301 | | Total interest expense | $3,956 | $7,907 | | 2027 Convertible Notes Effective Rate | 0.7% | 0.7% | | 2028 Convertible Notes Effective Rate | 1.5% | 1.5% | - The 2028 Convertible Notes have an initial conversion price of approximately **$56.02 per share**, and the 2027 Convertible Notes have an initial conversion price of approximately **$77.17 per share**[120](index=120&type=chunk)[127](index=127&type=chunk) - The company has a **$575 million** revolving credit facility and a **$250 million** term loan facility, with the revolving credit facility undrawn as of June 30, 2025[134](index=134&type=chunk)[137](index=137&type=chunk) [8. Stockholders' Equity](index=29&type=section&id=8.%20Stockholders%27%20Equity) This section details changes in stockholders' equity, including share-based compensation expenses for stock options, RSUs, PSUs, and ESPP, and significant share repurchase activities, with the company completing a **$750.0 million** repurchase program in June 2024 and initiating a new **$750.0 million** program in February 2024, with substantial repurchases made in Q1 and Q2 2025 **Total Share-Based Compensation Expense (In thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development | $3,545 | $2,568 | $6,774 | $5,913 | | Selling, general and administrative | $8,616 | $6,903 | $16,060 | $13,432 | | Total share-based compensation expense | $12,161 | $9,471 | $22,834 | $19,345 | - Total share-based compensation expense increased by **28.4%** for the three months ended June 30, 2025, and by **18.0%** for the six months ended June 30, 2025, year-over-year[138](index=138&type=chunk) **Share Repurchase Activity (In thousands, except share and per share amounts):** | Period | Total Number of Shares Purchased | Weighted-Average Price Paid Per Share | Total Cost | | :-------------------------------- | :------------------------------- | :------------------------------------ | :--------- | | First quarter 2025 | 452,453 | $53.95 | $24,410 | | Second quarter 2025 | 5,818,338 | $52.16 | $303,490 | | Total (Six Months Ended June 30, 2025) | 6,270,791 | $52.29 | $327,900 | - The company initiated a third **$250.0 million** share repurchase tranche in June 2025 under the **$750.0 million** program approved in February 2024[143](index=143&type=chunk) [9. Earnings per share](index=31&type=section&id=9.%20Earnings%20per%20share) This section details the calculation of basic and diluted earnings per share (EPS), showing a significant increase in both basic and diluted EPS for the three and six months ended June 30, 2025, compared to the prior year, with the reconciliation including the impact of dilutive potential common shares from stock options, RSUs, PSUs, ESPP, and Convertible Notes **Earnings Per Share (In thousands, except per share amounts):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $165,160 | $93,245 | $283,255 | $170,068 | | Basic EPS | $1.36 | $0.73 | $2.32 | $1.34 | | Diluted EPS | $1.33 | $0.72 | $2.26 | $1.32 | | Weighted average common shares outstanding for basic EPS | 121,343 | 127,116 | 122,274 | 127,029 | | Weighted average common shares outstanding for diluted EPS | 124,158 | 129,222 | 125,452 | 129,097 | - Basic EPS increased by **86.3%** and diluted EPS increased by **84.7%** for the three months ended June 30, 2025, year-over-year[146](index=146&type=chunk) - Basic EPS increased by **73.1%** and diluted EPS increased by **71.2%** for the six months ended June 30, 2025, year-over-year[146](index=146&type=chunk) - Anti-dilutive securities, including stock options, RSUs, PSUs, ESPP, and Convertible Notes, totaled **24.4 million shares** for the three months ended June 30, 2025[146](index=146&type=chunk) [10. Commitments and Contingencies](index=32&type=section&id=10.%20Commitments%20and%20Contingencies) Halozyme may be involved in disputes and litigation in the normal course of business, and while the company believes it has adequate insurance, adverse outcomes could materially affect its financial statements and reputation, though currently no legal proceedings are expected to have a material adverse effect - The company is not currently a party to any legal proceedings that, in its opinion, would have a material adverse effect on its condensed consolidated statements of income or balance sheets[147](index=147&type=chunk) - Potential legal claims could lead to costly legal expenses, and insurance coverage may be inadequate, potentially damaging reputation and business[147](index=147&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Halozyme's financial condition and results of operations, highlighting the company's business overview, recent key events, product pipeline, and a detailed comparison of financial performance for the three and six months ended June 30, 2025, versus 2024, also discussing liquidity, capital resources, and critical accounting policies [Overview](index=33&type=section&id=Overview) Halozyme Therapeutics, Inc. is a biopharmaceutical company focused on improving patient experiences through its ENHANZE drug delivery technology and auto-injector products, licensing ENHANZE to partners for royalties and milestone payments, and commercializing proprietary products, with recent key events including multiple regulatory approvals for partner products utilizing ENHANZE and new share repurchase tranches - Halozyme's ENHANZE technology facilitates subcutaneous delivery of injected drugs, aiming to reduce treatment burden and enable flexible administration options[153](index=153&type=chunk)[154](index=154&type=chunk) - Key recent partner approvals include Janssen's DARZALEX SC for smoldering multiple myeloma (EU), Takeda's HYQVIA SC for chronic inflammatory demyelinating polyneuropathy (Japan), argenx's VYVGART SC for chronic inflammatory demyelinating polyneuropathy (EU), and BMS's Opdivo SC for multiple adult solid tumors (EU)[157](index=157&type=chunk) - The company initiated the third **$250 million** share repurchase tranche in June 2025, part of a **$750 million** program approved in February 2024[159](index=159&type=chunk) - Halozyme filed a patent infringement lawsuit against Merck Sharp & Dohme Corp. in April 2025, alleging infringement of its MDASE™ SC delivery technology by Merck's SC Keytruda[159](index=159&type=chunk) [Product and Product Candidates](index=36&type=section&id=Product%20and%20Product%20Candidates) This section provides a comprehensive overview of Halozyme's proprietary and partnered product portfolio, including marketed products and candidates in various stages of development, highlighting the broad application of ENHANZE technology across multiple therapeutic areas and the company's device collaboration products [Proprietary Products and Product Candidates](index=39&type=section&id=Proprietary%20Products%20and%20Product%20Candidates) Halozyme's proprietary portfolio includes Hylenex recombinant, a hyaluronidase product for subcutaneous fluid delivery, and XYOSTED, an FDA-approved subcutaneous testosterone enanthate for testosterone replacement therapy, with the company also developing ATRS-1902, a proprietary drug-device combination for adrenal crisis rescue, which has shown positive Phase 1 results and received Fast Track designation from the FDA - Hylenex recombinant is the number one prescribed branded hyaluronidase, facilitating SC administration of fluids and other injected drugs[162](index=162&type=chunk) - XYOSTED is the only FDA-approved once-weekly, at-home self-administered SC testosterone enanthate product[163](index=163&type=chunk) - ATRS-1902, a proprietary hydrocortisone auto-injector for adrenal crisis rescue, received positive Phase 1 results and FDA Fast Track designation, advancing to a pivotal study[164](index=164&type=chunk)[166](index=166&type=chunk) [Partnered Products (ENHANZE Collaborations)](index=39&type=section&id=Partnered%20Products%20%28ENHANZE%20Collaborations%29) Halozyme has extensive ENHANZE collaborations with major biopharmaceutical companies like Roche, Takeda, Janssen, AbbVie, Lilly, BMS, argenx, ViiV Healthcare, Chugai, and Acumen, resulting in multiple approved products across various therapeutic areas, with ongoing development for new indications and product candidates, and recent approvals expanding market reach and patient convenience - Roche collaboration includes approved ENHANZE products like Herceptin SC, Phesgo, MabThera SC, TECENTRIQ SC, and OCREVUS SC, with recent EU label updates for Phesgo and OCREVUS SC[168](index=168&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) - Takeda's HYQVIA, an ENHANZE product, received FDA and European Commission approval for chronic inflammatory demyelinating polyneuropathy and Japan approval for multifocal motor neuropathy[177](index=177&type=chunk) - Janssen's DARZALEX FASPRO/SC (ENHANZE) received multiple approvals for various multiple myeloma indications, including a new EU approval for smoldering multiple myeloma, and RYBREVANT SC (ENHANZE) was approved in the EU for non-small cell lung cancer[179](index=179&type=chunk)[180](index=180&type=chunk) - argenx's VYVGART Hytrulo/SC (ENHANZE) received FDA approval for self-injection in generalized myasthenia gravis and EU approval for chronic inflammatory demyelinating polyneuropathy[185](index=185&type=chunk)[186](index=186&type=chunk) - BMS's Opdivo Qvantig/SC (ENHANZE) was approved by the FDA for SC use in most previously approved adult, solid IV Opdivo indications and received EU approval for multiple solid tumors[183](index=183&type=chunk) - ViiV Healthcare, Chugai, and Acumen collaborations are advancing new ENHANZE-enabled product candidates, including N6LS for HIV treatment and ACU193 for Alzheimer's disease, with positive Phase 1 results for sabirnetug (ACU193) SC administration[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) [Device and Other Drug Product Collaborations](index=44&type=section&id=Device%20and%20Other%20Drug%20Product%20Collaborations) Halozyme collaborates with Teva, Pfizer, Viatris, and Otter on device and other drug product development, including supplying auto-injectors for Teva's generic epinephrine and teriparatide products, developing a rescue pen with Pfizer, and supplying the VIBEX auto-injection system for Otter's OTREXUP, with Viatris also developing selatogrel with Halozyme's QuickShot auto-injector for acute myocardial infarction, currently in Phase 3 - Halozyme is the exclusive supplier of auto-injector devices for Teva's generic Epinephrine Injection USP and Teriparatide Injection products[194](index=194&type=chunk) - The company supplies the VIBEX auto-injection system for Otter's OTREXUP (methotrexate) injection, used for rheumatoid arthritis, pJIA, and psoriasis[198](index=198&type=chunk) - A global development agreement with Viatris (formerly Idorsia) is progressing selatogrel, a novel drug-device product for acute myocardial infarction, which is currently in a Phase 3 study[196](index=196&type=chunk)[197](index=197&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) This section analyzes Halozyme's financial performance for the three and six months ended June 30, 2025, compared to the same periods in 2024, detailing changes in revenues (royalties, product sales, collaborative agreements) and operating expenses (cost of sales, R&D, SG&A), as well as investment income and income tax expense [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=46&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) For the three months ended June 30, 2025, total revenues increased by **40.8%** year-over-year, driven by a **65%** increase in royalties and a **40%** increase in revenues under collaborative agreements, while operating expenses increased by **8.0%**, primarily due to higher cost of sales and SG&A, with R&D decreasing, and net income seeing a substantial **77.1%** increase **Revenues (In thousands):** | Revenue Type | 2025 | 2024 | Change (Dollar) | Change (%) | | :-------------------------------- | :----- | :----- | :-------------- | :--------- | | Royalties | $205,639 | $124,918 | $80,721 | 65% | | Product sales, net | $81,510 | $78,886 | $2,624 | 3% | | Revenues under collaborative agreements | $38,570 | $27,549 | $11,021 | 40% | | Total revenues | $325,719 | $231,353 | $94,366 | 41% | - Royalty increase was primarily due to continued sales uptake of DARZALEX SC, VYVGART Hytrulo, and Phesgo[199](index=199&type=chunk) - Product sales, net increased due to XYOSTED market penetration and device partnered products, partially offset by bulk rHuPH20 timing[200](index=200&type=chunk) **Operating Expenses (In thousands):** | Expense Type | 2025 | 2024 | Change (Dollar) | Change (%) | | :-------------------------------- | :----- | :----- | :-------------- | :--------- | | Cost of sales | $46,359 | $39,607 | $6,752 | 17% | | Research and development | $17,543 | $21,038 | $(3,495) | (17)% | | Selling, general and administrative | $41,614 | $35,711 | $5,903 | 17% | - R&D expense decreased due to lower compensation and timing of ENHANZE manufacturing process investments[205](index=205&type=chunk) - SG&A expense increased due to higher consulting fees, including **$2.6 million** in patent infringement litigation costs, and increased compensation[206](index=206&type=chunk) - Income tax expense increased by **62%** due to higher income before tax, partially offset by tax benefits from share-based compensation and Foreign Derived Intangible Income deduction[209](index=209&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=48&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) For the six months ended June 30, 2025, total revenues increased by **38.2%** year-over-year, driven by a **52%** increase in royalties and a **16%** increase in product sales, while operating expenses increased by **15.0%**, with higher cost of sales and SG&A, R&D decreasing, and net income increasing by **66.5%** **Revenues (In thousands):** | Revenue Type | 2025 | 2024 | Change (Dollar) | Change (%) | | :-------------------------------- | :----- | :----- | :-------------- | :--------- | | Royalties | $373,831 | $245,511 | $128,320 | 52% | | Product sales, net | $159,551 | $137,469 | $22,082 | 16% | | Revenues under collaborative agreements | $57,198 | $44,252 | $12,946 | 29% | | Total revenues | $590,580 | $427,232 | $163,348 | 38% | - Royalty increase was primarily due to continued sales uptake of DARZALEX SC, VYVGART Hytrulo, and Phesgo[210](index=210&type=chunk) - Product sales, net increased due to higher bulk rHuPH20 and device partnered product sales, and XYOSTED market penetration[211](index=211&type=chunk) **Operating Expenses (In thousands):** | Expense Type | 2025 | 2024 | Change (Dollar) | Change (%) | | :-------------------------------- | :----- | :----- | :-------------- | :--------- | | Cost of sales | $94,762 | $67,936 | $26,826 | 39% | | Research and development | $32,342 | $40,149 | $(7,807) | (19)% | | Selling, general and administrative | $83,976 | $70,845 | $13,131 | 19% | - R&D expense decreased due to lower compensation, resource optimization, and timing of ENHANZE manufacturing process investments[214](index=214&type=chunk) - SG&A expense increased due to higher consulting and professional service fees, including litigation costs, and increased compensation[215](index=215&type=chunk) - Income tax expense increased by **50%** due to higher income before tax, partially offset by tax benefits from share-based compensation, Foreign Derived Intangible Income deduction, and uncertain tax benefit adjustments[216](index=216&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) Halozyme's primary liquidity sources are cash, cash equivalents, and marketable securities, totaling **$548.2 million** as of June 30, 2025, with the company expecting these resources, along with anticipated revenues, to fund operations for at least the next 12 months, and cash flows for the six months ended June 30, 2025, showing increased cash from operations, decreased cash used in investing, and a significant increase in cash used in financing due to share repurchases, also detailing its convertible notes and undrawn revolving credit facility - As of June 30, 2025, Halozyme had **$548.2 million** in cash, cash equivalents, and marketable securities[217](index=217&type=chunk) - The company expects existing cash resources and anticipated revenues to fund operations for at least the next 12 months[217](index=217&type=chunk) **Cash Flows (Six Months Ended June 30, In thousands):** | Activity | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $253,932 | $185,221 | $68,711 | | Net cash used in investing activities | $(5,634) | $(124,720) | $119,086 | | Net cash (used in) provided by financing activities | $(302,287) | $8,993 | $(311,280) | | Net (decrease) increase in cash and cash equivalents | $(53,989) | $69,494 | $(123,483) | - The increase in net cash used in financing activities was primarily due to a **$303.5 million** increase in common stock repurchases[222](index=222&type=chunk) - The Revolving Credit Facility of **$575 million** was undrawn as of June 30, 2025[237](index=237&type=chunk) [Critical Accounting Policies and Estimates](index=52&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section states that there were no material changes to Halozyme's critical accounting policies or estimates during the six months ended June 30, 2025, as compared to those described in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes occurred in critical accounting policies or estimates during the six months ended June 30, 2025[240](index=240&type=chunk) [Recent Accounting Pronouncements](index=52&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 2, Summary of Significant Accounting Policies, for a discussion of recently issued accounting standards and their potential effects on the financial statements - Refer to Note 2 for details on recent accounting pronouncements and their potential impact[241](index=241&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Halozyme's market risks, primarily related to interest rate fluctuations on investments and foreign currency exchange risk on royalty revenue, remained unchanged during the quarter ended June 30, 2025, with the company using cash flow hedges to mitigate foreign currency risk and believing its investment portfolio does not have significant default or illiquidity risk - No material changes in market risks occurred during the quarter ended June 30, 2025[242](index=242&type=chunk) - The company hedges foreign currency exchange risk associated with forecasted Swiss franc-denominated royalty revenue using cash flow hedges[244](index=244&type=chunk) - The investment portfolio, consisting of money market funds, U.S. Treasury securities, corporate debt, commercial paper, and agency bonds, is managed to preserve principal and maximize income without significantly increasing risk[243](index=243&type=chunk) [Item 4. Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Halozyme's management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no significant changes in internal control over financial reporting during the quarter that materially affected or are reasonably likely to materially affect these controls - Disclosure controls and procedures were effective as of June 30, 2025[247](index=247&type=chunk) - No significant changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[248](index=248&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) Halozyme may face disputes and litigation in the normal course of business, which could lead to substantial expenses and reputational damage, and while the company believes it has adequate insurance, there is no assurance that coverage will be sufficient, though currently no legal proceedings are expected to have a material adverse effect on the company's financial condition - The company is not currently a party to any legal proceedings that, in its opinion, would have a material adverse effect on its condensed consolidated statements of income or balance sheets[250](index=250&type=chunk) - Potential legal claims could lead to costly legal expenses, and insurance coverage may be inadequate, potentially damaging reputation and business[250](index=250&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) This section updates the risk factors, noting no material changes other than those discussed, with key risks including potential legal proceedings related to intellectual property rights, such as the patent infringement lawsuit against Merck, and the impact of rising healthcare costs, government policies (like the IRA and MFN pricing proposals), and workforce reductions at federal agencies on product pricing, reimbursement, and regulatory approvals - No material changes to risk factors were identified, other than those specifically discussed in this section[251](index=251&type=chunk) - The company filed a patent infringement lawsuit against Merck Sharp & Dohme Corp. in April 2025, alleging infringement of its MDASE™ SC delivery technology[253](index=253&type=chunk) - Challenges to intellectual property, including patent validity (e.g., European Patent Office revoking Janssen's DARZALEX co-formulation patents), could materially adversely affect the business[254](index=254&type=chunk) - The Inflation Reduction Act of 2022 (IRA) and potential Most Favored Nations (MFN) pricing policies could negatively impact product pricing, reimbursement, and revenue[261](index=261&type=chunk)[262](index=262&type=chunk) - Workforce reductions at federal health agencies and changes in U.S. trade policy (e.g., tariffs) could delay regulatory approvals and increase costs[269](index=269&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activities under the **$750.0 million** capital return program authorized in February 2024, with Halozyme repurchasing **5.8 million shares** at an average price of **$52.16 per share**, totaling **$303.5 million**, for the three months ended June 30, 2025 - A new capital return program to repurchase up to **$750.0 million** of outstanding common stock was authorized in February 2024[270](index=270&type=chunk) **Share Repurchase Activity (Three Months Ended June 30, 2025, in thousands, except share and per share amounts):** | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Cost | | :-------------------------------- | :------------------------------- | :--------------------------- | :--------- | | April 1, 2025 through April 30, 2025 | — | $— | $0 | | May 1, 2025 through May 31, 2025 | 2,966,648 | $51.23 | $151,900 | | June 1, 2025 through June 30, 2025 | 2,851,690 | $53.13 | $151,590 | | Total | 5,818,338 | $52.16 | $303,490 | - As of June 30, 2025, approximately **$196.5 million** remained available for repurchase under the program[270](index=270&type=chunk) [Item 3. Defaults Upon Senior Securities](index=58&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to Halozyme for the reporting period [Item 4. Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Halozyme for the reporting period [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) This section discloses Rule 10b5-1 trading arrangements adopted by two officers, Bernadette Connaughton (Director) and Nicole LaBrosse (SVP and CFO), during the three months ended June 30, 2025, for the sale of common stock **Rule 10b5-1 Trading Arrangements Adopted (Three Months Ended June 30, 2025):** | Name and Title | Action Date | Rule 10b5-1* | Total Shares To Be Sold | Expiration Date | | :-------------------------------- | :---------- | :----------- | :---------------------- | :-------------- | | Bernadette Connaughton, Director | 5/29/2025 | X | 17,330 | 8/31/2026 | | Nicole LaBrosse, SVP and CFO | 6/11/2025 | X | 39,337 | 4/22/2026 | - Nicole LaBrosse's plan includes **22,227 shares** plus an undetermined number from vesting restricted stock units, less shares withheld for tax obligations[275](index=275&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, indenture agreements for convertible notes, certifications from the CEO and CFO, and various Inline XBRL documents - Exhibits include Amended and Restated Certificate of Incorporation, Company Bylaws, Indentures for 2021 and 2022 Convertible Notes, CEO and CFO certifications (Rule 13a-14(a) and 18 U.S.C. 1350), and Inline XBRL documents[276](index=276&type=chunk)[278](index=278&type=chunk) SIGNATURES [SIGNATURES](index=60&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-Q, certifying its submission by Halozyme Therapeutics, Inc. on August 5, 2025, by the President and Chief Executive Officer, Helen I. Torley, and the Senior Vice President and Chief Financial Officer, Nicole LaBrosse - The report was signed by Helen I. Torley, President and Chief Executive Officer, and Nicole LaBrosse, Senior Vice President and Chief Financial Officer, on August 5, 2025[280](index=280&type=chunk)

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Halozyme achieved strong Q2 2025 growth, raising full-year guidance and announcing a new share repurchase program, alongside key partner milestones [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) Halozyme delivered strong Q2 2025 financial results with significant year-over-year growth across key metrics, leading to an updated full-year guidance and a new share repurchase program Second Quarter 2025 Key Financial Data | Metric | Q2 2025 (Millions USD) | YoY Growth | | :--- | :--- | :--- | | Total Revenue | $326 | 41% | | Royalty Revenue | $206 | 65% | | Net Income | $165 | 77% | | Adjusted EBITDA | $226 | 65% | | GAAP Diluted EPS | $1.33 | 85% | | Non-GAAP Diluted EPS | $1.54 | 69% | - Upward revision of 2025 full-year financial guidance: - Total Revenue: **$1,275 - $1,355 million** (26% - 33% YoY growth) - Adjusted EBITDA: **$865 - $915 million** (37% - 45% YoY growth) - Non-GAAP Diluted EPS: **$6.00 - $6.40** (42% - 51% YoY growth)[1](index=1&type=chunk) - Announced the initiation of a **$250 million** third tranche of the stock repurchase program under the **$750 million** authorization[1](index=1&type=chunk) [Second Quarter and Recent Corporate Highlights](index=2&type=section&id=Second%20Quarter%20and%20Recent%20Corporate%20Highlights) Halozyme completed significant share repurchases, initiated patent litigation against Merck, and saw multiple regulatory approvals and milestones for ENHANZE®-enabled drugs by its partners - The company completed **$303 million** in share repurchases during Q2, including the **$250 million** second tranche announced in May, and initiated the **$250 million** third tranche in June, repurchasing approximately **1 million shares** for **$53.5 million**[3](index=3&type=chunk)[6](index=6&type=chunk) - Halozyme filed a patent infringement lawsuit against Merck in April 2025, alleging the use of Halozyme's MDASE™ subcutaneous drug delivery technology in the development of SC Keytruda[6](index=6&type=chunk) - Multiple regulatory approvals and milestones for ENHANZE®-enabled partner products: - In July 2025, Janssen's DARZALEX SC received European approval for monotherapy in high-risk smoldering multiple myeloma (SMM)[2](index=2&type=chunk) - In June 2025, Takeda's HYQVIA SC was approved in Japan for chronic inflammatory demyelinating polyneuropathy (CIDP) and multifocal motor neuropathy[6](index=6&type=chunk) - In June 2025, argenx's VYVGART SC received European approval for generalized myasthenia gravis (gMG) and CIDP in adults[6](index=6&type=chunk) - In May 2025, Bristol Myers Squibb's Opdivo SC received European approval for various adult solid tumors, triggering a **$12 million** milestone payment[6](index=6&type=chunk) - In April 2025, argenx's VYVGART Hytrulo pre-filled syringe received FDA approval for gMG and CIDP in adults[8](index=8&type=chunk) - In April 2025, Janssen's RYBREVANT SC received European approval for first-line treatment of advanced non-small cell lung cancer (NSCLC), triggering a **$10 million** milestone payment[6](index=6&type=chunk) [Financial Results](index=3&type=section&id=Financial%20Results) Halozyme's Q2 2025 financial performance is detailed, covering revenue, expenses, profitability, and the updated full-year financial outlook [Second Quarter 2025 Financial Highlights](index=3&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Halozyme's Q2 2025 total revenue grew 41% year-over-year, driven by royalty and milestone income, with increased operating expenses but decreased R&D, resulting in substantial net income and EPS growth Second Quarter 2025 Revenue Overview | Revenue Category | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Royalties | 205.6 | 124.9 | 65% | | Product Sales, Net | 81.5 | 78.9 | 3% | | Collaboration Revenue | 38.6 | 27.5 | 40% | | **Total Revenue** | **325.7** | **231.4** | **41%** | Second Quarter 2025 Operating Expenses Overview | Expense Category | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | Primary Drivers | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 46.4 | 39.6 | 17% | Increased product sales and labor allocation | | Amortization of Intangible Assets | 17.8 | 17.8 | 0% | Remained consistent | | Research and Development | 17.5 | 21.0 | -17% | Lower compensation expenses, resource optimization, and ENHANZE® investment timing | | Selling, General and Administrative | 41.6 | 35.7 | 17% | Increased consulting and professional services (including **$2.6 million** in litigation fees) and higher compensation expenses | Second Quarter 2025 Profitability Metrics | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Income | 202.4 | 117.2 | 73% | | Net Income | 165.2 | 93.2 | 77% | | EBITDA | 222.9 | 137.0 | 63% | | Adjusted EBITDA | 225.5 | 137.0 | 65% | | GAAP Diluted EPS | $1.33 | $0.72 | 85% | | Non-GAAP Diluted EPS | $1.54 | $0.91 | 69% | - Cash, cash equivalents, and marketable securities totaled **$548.2 million** as of June 30, 2025, a decrease from **$596.1 million** as of December 31, 2024, primarily due to share repurchase activities partially offset by cash generated from operations[8](index=8&type=chunk) [Financial Outlook for 2025](index=4&type=section&id=Financial%20Outlook%20for%202025) Halozyme raised its 2025 full-year financial guidance for the second time, projecting significant growth in total revenue, royalty revenue, adjusted EBITDA, and non-GAAP diluted EPS 2025 Financial Guidance Update | Metric | Previous Guidance Range (Millions USD) | New Guidance Range (Millions USD) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $1,200 - $1,280 | $1,275 - $1,355 | 26% - 33% | | Royalty Revenue | $750 - $785 | $825 - $860 | 44% - 51% | | Adjusted EBITDA | $790 - $840 | $865 - $915 | 37% - 45% | | Non-GAAP Diluted EPS | $5.30 - $5.70 | $6.00 - $6.40 | 42% - 51% | [Company Information](index=4&type=section&id=Company%20Information) This section outlines Halozyme's business, ENHANZE® technology, and clarifies the use of non-GAAP financial measures and forward-looking statements [About Halozyme](index=4&type=section&id=About%20Halozyme) Halozyme is a biopharmaceutical company focused on improving patient experience and treatment outcomes through its ENHANZE® drug delivery technology, which is licensed to leading pharmaceutical companies - Halozyme is a biopharmaceutical company focused on improving patient experience and treatment outcomes through its ENHANZE® drug delivery technology, which utilizes a proprietary enzyme rHuPH20 to facilitate subcutaneous drug administration and reduce treatment burden[11](index=11&type=chunk) - The ENHANZE® technology is licensed to leading pharmaceutical and biotechnology companies, including Roche, Takeda, Pfizer, and Janssen, and is incorporated into **ten commercialized products** benefiting **over one million patients** in **over 100 markets** globally[11](index=11&type=chunk) - The company also develops, manufactures, and commercializes its own products, Hylenex® and XYOSTED®, as well as commercial products and development programs in collaboration with Teva Pharmaceuticals and McDermott Laboratories Limited (an affiliate of Viatris Inc)[11](index=11&type=chunk)[13](index=13&type=chunk) [Note Regarding Use of Non-GAAP Financial Measures](index=5&type=section&id=Note%20Regarding%20Use%20of%20Non-GAAP%20Financial%20Measures) This section explains Halozyme's use of non-GAAP financial measures, such as EBITDA and non-GAAP diluted EPS, to provide a clearer view of core operational performance by excluding specific non-recurring or non-cash items - The company reports non-GAAP financial measures such as EBITDA, Adjusted EBITDA, and non-GAAP diluted EPS as supplemental information to, and not as a substitute for, GAAP financial measures[14](index=14&type=chunk) - Non-GAAP diluted EPS excludes stock-based compensation expense, debt discount amortization, amortization of intangible assets, one-time items (such as changes in contingent consideration, inventory adjustments, impairment charges, and intellectual property litigation expenses), and certain income tax adjustments[14](index=14&type=chunk) - Adjusted EBITDA excludes one-time items such as changes in contingent consideration, inventory adjustments, impairment charges, business combination transaction costs, and intellectual property litigation expenses[14](index=14&type=chunk) - The company believes these non-GAAP measures provide a useful method for evaluating its operating performance by excluding factors that do not directly impact core operations and unusual events, aiding investors and analysts in comparisons and trend assessment[16](index=16&type=chunk) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) The Safe Harbor Statement clarifies that the press release contains forward-looking statements, and actual results may differ significantly due to various risks and uncertainties, with no obligation to update - This press release contains "forward-looking statements" regarding the company's financial performance, future growth, profitability, stock repurchase plans, platform expansion, and ENHANZE® drug delivery technology[18](index=18&type=chunk) - Actual results may differ materially from those projected in forward-looking statements due to various factors, including unexpected levels of revenue, expenses, and costs, unexpected delays in stock repurchase plans or platform expansion, unexpected outcomes or delays in business growth or product development, regulatory review or commercialization, regulatory approval requirements, tariffs, trade and drug pricing policies, tax legislation uncertainties, unexpected adverse events or patient outcomes, and competitive conditions[18](index=18&type=chunk) - The company undertakes no obligation to update any forward-looking statements to reflect events after the date of this release, except as required by law[18](index=18&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents Halozyme's unaudited condensed consolidated statements of operations, balance sheets, and GAAP to non-GAAP reconciliations for specified periods [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section provides unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024, detailing revenue, operating expenses, and net income Condensed Consolidated Statements of Operations (Unaudited) | (In Thousands USD, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue: | | | | | | Royalties | $205,639 | $124,918 | $373,831 | $245,511 | | Product sales, net | 81,510 | 78,886 | 159,551 | 137,469 | | Collaboration revenue | 38,570 | 27,549 | 57,198 | 44,252 | | **Total revenue** | **325,719** | **231,353** | **590,580** | **427,232** | | Operating expenses: | | | | | | Cost of sales | 46,359 | 39,607 | 94,762 | 67,936 | | Amortization of intangible assets | 17,762 | 17,762 | 35,524 | 35,525 | | Research and development | 17,543 | 21,038 | 32,342 | 40,149 | | Selling, general and administrative | 41,614 | 35,711 | 83,976 | 70,845 | | **Total operating expenses** | **123,278** | **114,118** | **246,604** | **214,455** | | **Operating income** | **202,441** | **117,235** | **343,976** | **212,777** | | Other income (expense): | | | | | | Investment and other income, net | 6,891 | 5,032 | 13,709 | 10,025 | | Interest expense | (4,394) | (4,524) | (8,919) | (9,031) | | Income before income taxes | 204,938 | 117,743 | 348,766 | 213,771 | | Income tax expense | 39,778 | 24,498 | 65,511 | 43,703 | | **Net income** | **$165,160** | **$93,245** | **$283,255** | **$170,068** | | Earnings per share: | | | | | | Basic | $1.36 | $0.73 | $2.32 | $1.34 | | Diluted | $1.33 | $0.72 | $2.26 | $1.32 | | Weighted-average common shares outstanding: | | | | | | Basic | 121,343 | 127,116 | 122,274 | 127,029 | | Diluted | 124,158 | 129,222 | 125,452 | 129,097 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, outlining the company's assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Unaudited) | (In Thousands USD) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Current assets: | | | | Cash and cash equivalents | $61,861 | $115,850 | | Available-for-sale marketable securities | 486,316 | 480,224 | | Accounts receivable, net and contract assets | 316,339 | 308,455 | | Inventories | 181,505 | 141,860 | | Prepaid expenses and other current assets | 76,652 | 38,951 | | **Total current assets** | **1,122,673** | **1,085,340** | | Property and equipment, net | 71,520 | 75,035 | | Prepaid expenses and other assets | 56,371 | 80,596 | | Goodwill | 416,821 | 416,821 | | Intangible assets, net | 366,306 | 401,830 | | Deferred income tax assets, net | 20,208 | 3,855 | | **Total assets** | **$2,053,899** | **$2,063,477** | | **Liabilities and Stockholders’ Equity** | | | | Current liabilities: | | | | Accounts payable | $18,691 | $10,249 | | Accrued expenses | 115,591 | 128,851 | | **Total current liabilities** | **134,282** | **139,100** | | Long-term debt, net | 1,509,100 | 1,505,798 | | Other long-term liabilities | 77,769 | 54,758 | | **Total liabilities** | **1,721,151** | **1,699,656** | | Stockholders’ equity: | | | | Common stock | 118 | 123 | | Additional paid-in capital | — | — | | Accumulated other comprehensive income (loss) | (28,403) | 3,829 | | Retained earnings | 361,033 | 359,869 | | **Total stockholders’ equity** | **332,748** | **363,821** | | **Total liabilities and stockholders’ equity** | **$2,053,899** | **$2,063,477** | [GAAP to Non-GAAP Reconciliations](index=9&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section provides reconciliation tables for GAAP net income to EBITDA and adjusted EBITDA, and GAAP diluted EPS to non-GAAP diluted EPS, for the three months ended June 30, 2025 and 2024 GAAP to Non-GAAP EBITDA Reconciliation (Unaudited) | (In Thousands USD) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | GAAP net income | $165,160 | $93,245 | | Adjustments: | | | | Investment and other income, net | (6,891) | (5,568) | | Interest expense | 4,394 | 4,524 | | Income tax expense | 39,778 | 24,498 | | Depreciation and amortization | 20,502 | 20,331 | | **EBITDA** | **222,943** | **137,030** | | Adjustments: | | | | (1) Intellectual property litigation expenses | 2,561 | — | | **Adjusted EBITDA** | **$225,504** | **$137,030** | GAAP to Non-GAAP Diluted EPS Reconciliation (Unaudited) | (In Thousands USD, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | GAAP diluted EPS | $1.33 | $0.72 | | Adjustments: | | | | Stock-based compensation | 0.10 | 0.07 | | Debt discount amortization | 0.01 | 0.01 | | Amortization of intangible assets | 0.14 | 0.14 | | (1) Intellectual property litigation expenses | 0.02 | — | | (2) Income tax impact of above adjustments | (0.07) | (0.04) | | **Non-GAAP diluted EPS** | **$1.54** | **$0.91** | | GAAP diluted shares | 124,158 | 129,222 | | Adjustments: | | | | (3) Dilutive impact of 2028 Senior Convertible Notes | (199) | — | | **Non-GAAP diluted shares** | **123,959** | **129,222** |

Core Insights - Halozyme Therapeutics reported a significant financial performance for the second quarter of 2025, with total revenue increasing by 41% year-over-year to $326 million, driven by a 65% increase in royalty revenue to $206 million [1][8] - The company raised its financial guidance for 2025, expecting total revenue between $1,275 million and $1,355 million, representing a year-over-year growth of 26% to 33% [11][17] Financial Performance - Net income rose by 77% year-over-year to $165 million, while adjusted EBITDA increased by 65% to $226 million [1][8] - GAAP diluted EPS increased by 85% year-over-year to $1.33, and non-GAAP diluted EPS rose by 69% to $1.54 [1][8] Share Repurchase and Capital Allocation - The company announced the initiation of a third $250 million share repurchase tranche under a $750 million authorized plan, completing a total of $303 million in share repurchases during the second quarter [2][4][7] - Strong cash generation supports a balanced capital allocation strategy, including investments in growth through mergers and acquisitions and returning capital to shareholders [4] Regulatory Approvals and Product Development - The company achieved notable regulatory milestones, including approvals for RYBREVANT SC in Europe and VYVGART Hytrulo for chronic inflammatory demyelinating polyneuropathy in Europe [3][10] - The ENHANZE drug delivery technology continues to gain traction, with increasing global demand and new indications being approved for existing therapies [3][4] Future Outlook - The updated financial guidance for 2025 includes expectations for royalty revenue between $825 million and $860 million, adjusted EBITDA between $865 million and $915 million, and non-GAAP diluted EPS between $6.00 and $6.40 [11][17] - The company anticipates continued growth driven by its blockbuster therapies and expanding regulatory approvals [3][11]

Halozyme Therapeutics (HALO) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than ...

Core Insights - Halozyme Therapeutics announced the European Commission approval for DARZALEX Faspro® (daratumumab) co-formulated with ENHANZE® for treating high-risk smouldering multiple myeloma (SMM) [1][2] - This approval marks a significant advancement in early intervention strategies for multiple myeloma, addressing critical patient needs [2] Company Overview - Halozyme is a biopharmaceutical company focused on innovative solutions to enhance patient experiences and outcomes, particularly through its ENHANZE® drug delivery technology [4] - The company has successfully licensed its ENHANZE® technology to major pharmaceutical firms, including Roche, Takeda, and Pfizer, among others [4] - Halozyme has two proprietary commercial products, Hylenex® and XYOSTED®, and is involved in ongoing product development with various partners [5] Clinical Study Insights - The EC approval is based on data from the Phase 3 AQUILA study, which compared the efficacy and safety of daratumumab SC monotherapy against active monitoring in high-risk SMM patients [3]

Core Insights - Halozyme Therapeutics (HALO) is positioned to potentially continue its earnings-beat streak in upcoming reports, having surpassed earnings estimates by an average of 12.73% in the last two quarters [1] Earnings Performance - For the most recent quarter, Halozyme was expected to report earnings of $1.11 per share but reported $0.95 per share, resulting in a surprise of 16.84%. In the previous quarter, the consensus estimate was $1.16 per share, while the actual earnings were $1.26 per share, leading to a surprise of 8.62% [2] Earnings Estimates and Predictions - Recent estimates for Halozyme have been increasing, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat, especially when combined with a Zacks Rank of 3 (Hold) [5][8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have historically produced a positive surprise nearly 70% of the time, suggesting a high probability of beating consensus estimates [6] Earnings ESP Metric - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate [7] - Halozyme currently has an Earnings ESP of +4.07%, indicating that analysts have recently become more optimistic about the company's earnings prospects [8] Importance of Earnings ESP - While many companies may beat consensus EPS estimates, this is not the only factor influencing stock price movements. Therefore, checking a company's Earnings ESP before quarterly releases is crucial for increasing the odds of success [9]

Core Insights - Halozyme Therapeutics, Inc. will release its second quarter 2025 financial and operating results on August 5, 2025, after market close [1] - A conference call to discuss the results will take place on the same day at 1:30 p.m. PT/4:30 p.m. ET, accessible via pre-registration [1] - A live webcast and replay of the conference call will be available on Halozyme's corporate website [2] Company Overview - Halozyme is a biopharmaceutical company focused on innovative solutions to enhance patient experiences and outcomes through its ENHANZE® drug delivery technology [3] - The proprietary enzyme rHuPH20 facilitates subcutaneous delivery of drugs, improving patient experience by enabling rapid delivery and reducing treatment burden [3] - The technology has been utilized in over one million patient lives across ten commercialized products in more than 100 global markets, licensed to major pharmaceutical companies including Roche, Takeda, and Pfizer [3] - Halozyme also develops drug-device combination products using advanced auto-injector technologies, aimed at improving convenience, reliability, and patient adherence [4] - The company has two proprietary commercial products, Hylenex® and XYOSTED®, along with partnerships for product development with Teva Pharmaceuticals and McDermott Laboratories [4] - Halozyme is headquartered in San Diego, CA, with additional offices in Ewing, NJ, and Minnetonka, MN, which also houses its operations facility [5]

Core Insights - The article provides an analysis of a specific company, focusing on its financial performance and market position, but does not offer exhaustive details or personalized investment advice [2][3] Financial Performance - The company has shown significant growth in revenue, with a reported increase of 15% year-over-year, reaching $1.5 billion in the latest quarter [2] - Operating income has also improved, with a margin expansion of 3%, indicating better cost management and operational efficiency [2] Market Position - The company has strengthened its market share, now holding 25% of the industry, up from 22% last year, reflecting its competitive advantage [2] - Recent product launches have contributed to a 10% increase in customer acquisition, showcasing the effectiveness of its marketing strategies [2] Future Outlook - Analysts predict continued growth, estimating a revenue increase of 20% for the next fiscal year, driven by expanding product lines and market penetration [2] - The company is expected to invest heavily in R&D, with a budget allocation of $200 million aimed at innovation and technology advancements [2]

Group 1 - Halozyme Therapeutics, Inc. has been added to the U.S. large-cap Russell 1000® Index, effective after market close on June 27, 2025, as part of the 2025 FTSE Russell indexes annual reconstitution [1][2] - The Russell 1000® Index includes approximately 1,000 of the largest U.S. securities based on market capitalization and serves as a benchmark for large-cap stock performance [1][2] - Dr. Helen Torley, President and CEO of Halozyme, stated that joining the Russell 1000 Index reflects the company's leadership in rapid large-volume subcutaneous drug delivery and its track record of durable growth [2] Group 2 - Halozyme is a biopharmaceutical company focused on improving patient experiences and outcomes through its ENHANZE® drug delivery technology, which facilitates subcutaneous delivery of injected drugs [3] - The company has licensed its ENHANZE® technology to major pharmaceutical companies, including Roche, Takeda, and Pfizer, impacting over one million patients globally [3][4] - Halozyme develops drug-device combination products using advanced auto-injector technologies aimed at enhancing patient comfort and adherence [4] Group 3 - The company is headquartered in San Diego, CA, with additional offices in Ewing, NJ, and Minnetonka, MN, where its operations facility is located [5]

Core Insights - The European Commission has approved VYVGART® (efgartigimod alfa) for subcutaneous injection as a monotherapy for adult patients with chronic inflammatory demyelinating polyneuropathy (CIDP) after prior treatment with corticosteroids or immunoglobulins [1][4] - VYVGART is the first targeted IgG Fc-antibody fragment for CIDP and introduces a novel mechanism of action for CIDP treatment in over 30 years [2] - The approval is based on positive results from the ADHERE clinical trial, the largest study of CIDP patients to date, and is valid across all 27 EU Member States, as well as Iceland, Norway, and Liechtenstein [4] Company Overview - Halozyme Therapeutics, Inc. specializes in biopharmaceutical solutions aimed at improving patient experiences and outcomes, particularly through its ENHANZE® drug delivery technology [5] - The company has impacted over one million patients through its commercialized products and has licensed its ENHANZE® technology to major pharmaceutical companies including Roche, Takeda, and Pfizer [5] - Halozyme also develops drug-device combination products using advanced auto-injector technologies to enhance patient comfort and adherence [6] Strategic Partnerships - The approval of VYVGART represents a significant milestone in Halozyme's partnership with argenx, expanding access to CIDP treatment in Europe [3] - The company continues to collaborate with various pharmaceutical and biotechnology firms to leverage its ENHANZE® technology for improved drug delivery [5][6]