Halozyme Therapeutics Q1 Earnings Call Highlights

Key Points

• Halozyme’s Q1 2026 results jumped sharply, with total revenue up 42% to $376.7 million and adjusted EBITDA up 42% to $229.5 million. GAAP diluted EPS rose to $1.22 from $0.93, while non-GAAP diluted EPS increased to $1.60 from $1.11.
• The company reaffirmed its full-year 2026 guidance and continues to expect ENHANZE royalties to surpass $1 billion for the first time this year. Halozyme still forecasts 2026 total revenue of $1.71 billion to $1.81 billion and non-GAAP diluted EPS of $7.75 to $8.25.
• Halozyme announced a new $1 billion share repurchase authorization and said it expects to buy back at least $400 million of stock in 2026. Management also said it is unlikely to pursue a non-drug-delivery acquisition this year, while continuing to focus on ENHANZE, Hypercon and SurfBio growth.

Halozyme Therapeutics NASDAQ: HALO reported a sharp increase in first-quarter 2026 revenue and earnings, driven by continued growth in royalties from its ENHANZE drug-delivery platform, and announced a new $1 billion share repurchase authorization.

On the company’s earnings call, President and CEO Helen Torley said Halozyme “started 2026 with exceptional momentum,” citing the performance of approved partner products, recent licensing deals and an expanding clinical pipeline. Interim Chief Financial Officer David Ramsay said the company’s first-quarter performance reflected “robust year-over-year royalty growth” and reinforced the operating leverage of Halozyme’s royalty-driven business model.

Revenue and Earnings Rise More Than 40%

Halozyme reported first-quarter total revenue of $376.7 million, up about 42% from $264.9 million in the prior-year period. Royalty revenue rose approximately 43% to $240.7 million, compared with $168.2 million a year earlier.

Ramsay said the royalty growth reflected continued commercial success of key ENHANZE-enabled products, including subcutaneous DARZALEX, VYVGART Hytrulo and Phesgo, as well as contributions from more recently launched subcutaneous therapies including OCREVUS, Opdivo, TECENTRIQ and RYBREVANT.

Adjusted EBITDA increased 42% to $229.5 million from $162 million in the prior-year quarter. GAAP diluted earnings per share were $1.22, compared with $0.93 a year earlier, while non-GAAP diluted earnings per share rose to $1.60 from $1.11.

Research and development expenses increased to $25.6 million from $14.8 million, which Ramsay attributed to the integration of the Hypercon and SurfBio acquisitions. Selling, general and administrative expenses were $57.9 million, compared with $42.4 million in the year-ago quarter.

2026 Guidance Reaffirmed

Halozyme reaffirmed its full-year 2026 guidance. The company continues to expect total revenue of $1.71 billion to $1.81 billion, representing year-over-year growth of 22% to 30%. Royalty revenue is expected to reach $1.13 billion to $1.17 billion, up 30% to 35% from 2025.

Torley highlighted that Halozyme continues to project ENHANZE royalties will exceed $1 billion for the first time in 2026. The company also reiterated its 2026-2028 financial outlook, including expectations that adjusted EBITDA margin will be greater than 65% during the period and grow to approximately 70%.

For 2026, Halozyme expects adjusted EBITDA of $1.125 billion to $1.205 billion, including approximately $60 million of planned investment in Hypercon and SurfBio. The company expects non-GAAP diluted EPS of $7.75 to $8.25, which Ramsay said does not assume any impact from potential future share repurchases.

Buyback Authorization and Capital Allocation

Halozyme announced a new $1 billion share repurchase authorization and said it expects to buy back at least $400 million of its shares in 2026. Torley said the company projects a 3% annual share buyback yield over the next several years.

Torley outlined four capital allocation priorities for the 2026-2028 period: investing in organic opportunities, including ENHANZE, Hypercon and SurfBio; returning capital through buybacks; further deleveraging by retiring remaining 2027 and 2028 notes at maturity; and evaluating drug-delivery merger and acquisition opportunities.

Torley added that, based on Halozyme’s standards and its assessment so far this year, it is unlikely the company will identify a drug-delivery acquisition opportunity meeting its criteria in 2026. She also said Halozyme does not foresee M&A outside of drug delivery.

Ramsay said Halozyme ended the quarter with net leverage of approximately 2.5 times, reflecting the Hypercon and SurfBio acquisitions. After the planned share repurchases, the company projects net leverage of approximately 1.2 times by the end of 2026, supported by cash generation.

ENHANZE Products Drive Royalty Growth

Torley said Halozyme’s first 10 ENHANZE-launched products remain the key drivers of revenue in the 2026-2028 period. She said the company estimates that, by the end of 2025, those products had generated about 25% of their projected potential royalties, with about 66% of additional projected royalty revenue expected between 2026 and 2032 and the remaining 9% in later years.

Among key products, Torley said DARZALEX generated approximately $4 billion in global sales in the first quarter, representing nearly 18% operational growth. Halozyme received $129 million in royalty revenue from the product during the quarter, up 26% year over year.

VYVGART generated approximately $1.3 billion in global sales in the quarter, representing nearly 63% growth. Halozyme royalty revenue from VYVGART Hytrulo increased 119% to $46.3 million. Torley noted that the prefilled syringe for VYVGART Hytrulo with ENHANZE has helped accelerate subcutaneous uptake.

Roche’s Phesgo sales increased 27% year over year to 686 million Swiss francs, or approximately $877 million, generating $30.2 million in royalty revenue for Halozyme, up 25% year over year.

Torley also highlighted growth opportunities from newer ENHANZE products. Roche reported approximately 24,000 patients globally are receiving subcutaneous OCREVUS, an increase of roughly 7,000 patients from the prior quarter. Johnson & Johnson reported $257 million in first-quarter sales for RYBREVANT plus Leclaza, representing 80% year-over-year growth.

Pipeline and New Partnerships Support Longer-Term Outlook

Halozyme said it expects four sources of revenue growth in the 2029-and-beyond period: continued contributions from the 10 current ENHANZE products; up to 13 additional ENHANZE partner products projected to be in clinical development by the end of 2026; two Hypercon product launches projected in the 2030-2031 timeframe; and future launches from additional target nominations and new collaboration and licensing agreements.

During the first quarter, Torley said two ENHANZE partners initiated Phase 1 studies of new targets. Argenx initiated a Phase 1 study with ARGX-124, the fifth product in the argenx collaboration to advance to the clinic. Another unnamed ENHANZE partner initiated and completed Phase 1 testing during the quarter. Pfizer also nominated a new undisclosed, non-exclusive ENHANZE target.

Halozyme has signed three new collaboration and licensing agreements in 2026, meeting its stated goal for the year. Torley said the company has “line of sight” to additional agreements in 2026.

The new deals include an ENHANZE collaboration with GSK covering multiple oncology targets, including antibody drug conjugates; a Hypercon collaboration with Vertex Pharmaceuticals for up to three targets; and a Hypercon agreement with Oruka covering ORKA-001 for psoriasis and related inflammatory diseases and up to one additional target.

Torley said Halozyme expects Hypercon to become a separate royalty engine and reiterated the company’s projection that Hypercon could achieve approximately $1 billion in royalty revenue by the mid-2030s. She said Halozyme is investing in manufacturing capacity to offer end-to-end services for Hypercon partners and now projects the first two Hypercon Phase 1 clinical starts in the first half of 2027, with launch timing still expected in 2030 and 2031.

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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