The Healthcare Sector Is Surging. Here's 1 Stock Every Investor Should Have on Their Radar.

Core Insights - Investing in Halozyme Therapeutics offers exposure to the healthcare and biotechnology sectors, with the S&P 500 healthcare sector rising 13% compared to the broader index's 7% increase, while Halozyme's stock has decreased by 9% in the same period, presenting a buying opportunity [1] Company Overview - Halozyme Therapeutics has a market capitalization of $7 billion, with a current stock price of $63.33 and a gross margin of 78.83% [2] - The company is recognized for its ENHANZE technology, which facilitates subcutaneous drug delivery, serving over 1 million patients and significantly reducing delivery time for 97% of its patients [2] Financial Performance - Halozyme has achieved a 38% annualized sales growth rate over the last decade, indicating strong performance despite current stock valuation pressures due to upcoming patent expirations in the U.S. (2027) and EU (2029) [3] Strategic Acquisitions - The company has diversified its offerings through strategic acquisitions, including the recent $750 million acquisition of Elektrofi, enhancing its drug delivery capabilities with Hypercon technology, which extends intellectual property until 2040 [5] - In 2022, Halozyme acquired Antares Pharma for $960 million, adding autoinjector technology and enabling at-home self-administered therapies, further diversifying its product range [6] Investment Potential - Halozyme demonstrates a cash return on invested capital of 31%, effectively utilizing its free cash flow for acquisitions and share repurchases, with shares trading at 14 times free cash flow, suggesting resilience against the upcoming patent cliff [7]