Halozyme Therapeutics Q1 2025 Earnings: A Catalyst-Fueled Surge in Biotech Innovation

Halozyme Therapeutics (NASDAQ: HALO) delivered a standout performance in its first quarter of 2025, reporting revenue growth of 35% year-over-year (YoY) to $264.86 million, while adjusted EPS soared 41% to $1.11, handily beating consensus estimates. The results underscore the company’s dominance in subcutaneous drug delivery technology, driven by its ENHANZE platform and a pipeline of high-value partnered products.

Key Drivers: ENHANZE’s Blockbuster Portfolio

The Q1 results were propelled by three ENHANZE-enabled blockbuster drugs, each showing robust growth:
1. DARZALEX SC (multiple myeloma): Sales hit $3.2 billion, up 22% YoY, with 95% U.S. market share in subcutaneous treatments.
2. Phesgo (HER2-positive breast cancer): Revenue jumped 52% to $675 million, with adoption in 58 countries at a 47% conversion rate, targeting 50%+ penetration by year-end.
3. VYVGART Hytrulo (autoimmune diseases): Projected to grow from $2.2 billion in 2024 to $7 billion by 2028, supported by FDA approvals for self-injection, enabling 20–30-second administration.

Financial Forte: Royalties and Operational Efficiency

Halozyme’s royalty revenue—its largest income stream—surged 39% YoY to $168.2 million, while adjusted EBITDA rose 40% to $162 million, highlighting operational efficiency. The company also boosted its full-year 2025 guidance, now projecting $1.2–1.28 billion in total revenue and $750–785 million in royalties, up from prior estimates.

Looking further ahead, Halozyme forecasts doubling total revenue by 2028 to $1.735–1.86 billion, with non-GAAP diluted EPS reaching $8.25–8.85 (a 102% increase from 2024 levels). These projections are bolstered by its expanding pipeline, including OCREVUS ZUNOVO (multiple sclerosis) and TECENTRIQ Hybreza (cancer immunotherapy), which collectively could contribute $27 billion in sales by 2028.

Strategic Leverage: Share Buybacks and Partnerships

Halozyme continues to return capital to shareholders:
- A new $250 million share repurchase program was announced in Q1, adding to the $1.55 billion repurchased since 2019, which reduced diluted shares by 10%.
- The company’s $747.9 million cash balance (up from $596.1 million in 2024) provides ample liquidity to fund growth and M&A opportunities.

Strategic partnerships remain a cornerstone, with ENHANZE now enabling 10 commercialized products across over 100 markets. Notably, Halozyme filed a patent lawsuit against Merck in Q1, alleging infringement on its subcutaneous delivery technology for Keytruda, a move that could reinforce its IP moat.

Market Context and Risks

While Halozyme’s stock rose 26.8% year-to-date versus the S&P 500’s -3.9% decline, it carries a Zacks Rank #3 (Hold) due to mixed earnings estimate revisions. Risks include regulatory delays, competition, and litigation outcomes. However, its Medical - Biomedical and Genetics industry ranks in the top 31% of 250+ Zacks sectors, historically outperforming weaker peers by a 2:1 margin.

Conclusion: A Strong Foundation for Sustained Growth

Halozyme’s Q1 results affirm its position as a leader in subcutaneous drug delivery, with ENHANZE’s scalability and blockbuster partnerships driving exponential growth. The company’s raised guidance, robust cash flow, and shareholder-friendly capital strategy position it well for its $1 billion royalty revenue target by 2027 and $8.85 EPS by 2028.

While near-term volatility may persist due to litigation and industry dynamics, the 11 near-term catalysts highlighted—spanning regulatory approvals, pipeline milestones, and reimbursement wins—suggest Halozyme is primed for long-term outperformance. Investors seeking exposure to biotech innovation with strong execution should closely monitor its progress toward $20 billion in 2028 sales from existing products and $35 billion from newer launches, making this a compelling play on the future of subcutaneous therapeutics.