HALO Raises 2025 Financial Guidance, Keeps 2024 View, Stock Up

Company Performance and Financial Guidance - Halozyme Therapeutics' shares rallied 55.2% in the past year, outperforming the industry's decline of 14.4% [1] - The company raised its 2025 financial guidance, with total revenues expected to be $1.15-$1.22 billion, representing year-over-year growth of 16%-23% [4] - Adjusted EBITDA for 2025 is projected to be $755-$805 million, implying year-over-year growth of 24%-32% [4] - For 2024, preliminary total revenues are expected to be $970 million-$1.02 billion, with royalty revenues anticipated at $550-$565 million [5] - Net income for 2024 is forecasted to be $419-$443 million, with earnings per share expected at $3.22-$3.40 and adjusted earnings at $4.00-$4.20 [6] Revenue Drivers and Partnerships - Halozyme's Enhanze technology is used by several companies to develop subcutaneous formulations of their drugs, including J&J's Darzalex and Roche's Phesgo [1] - The company's top line comprises product sales, royalty payments from Roche for Phesgo and J&J for subcutaneous Darzalex, and revenues from collaborative agreements related to Enhanze technology [9] - Royalty revenues are now anticipated to be $725-$750 million, implying year-over-year growth of 30%-35%, driven by strong growth of J&J's Darzalex SC and Roche's Phesgo [2] Share Repurchase and Market Performance - Halozyme announced a new $250 million accelerated share repurchase program under its previously announced $750 million share repurchase program [3] - The company's shares were up 5% on Jan 8, 2025, following the raised guidance, and gained another 1.8% in after-hours trading [3] Earnings and Adjusted Earnings - Adjusted earnings for 2025 are now expected to be $4.95-$5.35 per share, representing year-over-year growth of 21%-30% [10] - The earnings per share guidance does not consider the impact of potential future share repurchases [11] Industry Comparison - Puma Biotechnology, another top-ranked stock in the biotech sector, has seen its 2025 earnings per share estimates increase from 42 cents to 54 cents in the past 60 days [7] - Puma Biotechnology's shares have declined 25.7% in the past year, despite beating earnings estimates in three of the trailing four quarters with an average surprise of 32.78% [7][8]