Halozyme Beats on Q3 Earnings & Revenues, Raises 2025 View

Core Insights - Halozyme Therapeutics (HALO) reported Q3 2025 adjusted earnings of $1.72 per share, exceeding the Zacks Consensus Estimate of $1.63, with a year-over-year increase of 35.4% [1][7] - Total revenues for Q3 2025 reached $354.3 million, a 22% increase year-over-year, surpassing the Zacks Consensus Estimate of $337 million [1][7] Revenue Breakdown - The growth in total revenues was primarily driven by increased product sales and higher royalty payments [2] - Royalty revenues amounted to $236 million in Q3, reflecting a 52% increase from the previous year, driven by strong demand for Phesgo, subcutaneous Darzalex, and Vyvgart Hytrulo [6] - Product sales were reported at $94.2 million, an 8.7% increase year-over-year, exceeding the model estimate of $83.8 million [8] - Revenues from collaborative agreements decreased by 50.4% year-over-year to $24 million [8] Financial Performance - Adjusted EBITDA for Q3 was $248.2 million, representing a 35% increase from the prior year [8] - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $702 million, up from $548.2 million as of June 30, 2025 [9] Guidance Update - Halozyme raised its 2025 revenue guidance to a range of $1.30 billion to $1.38 billion, up from the previous range of $1.28 billion to $1.36 billion [10] - Royalty revenue expectations were adjusted to $850-$880 million, compared to the earlier forecast of $825-$860 million [11] - Adjusted EBITDA guidance was increased to $885-$935 million, up from $865-$915 million [11] - Adjusted earnings per share guidance was raised to a range of $6.10-$6.50, compared to the previous range of $6.00-$6.40 [11] Recent Developments - Halozyme announced a definitive agreement to acquire Elektrofi, a biopharmaceutical company specializing in ultra-high concentration microparticle technology for biologics [12] - The acquisition involves an upfront payment of $750 million, with potential milestone payments of $50 million each, contingent on regulatory approvals for three products [13]