Halozyme's Q2 2025: Unpacking Contradictions in Patent Litigation, ENHANZE Impact, and Regulatory Challenges

Patent litigation and Merck's position, impact of Merck litigation on ENHANZE business, CMS draft guidance and regulatory concerns, and interest in high-volume auto-injectors are the key contradictions discussed in Halozyme Therapeutics' latest 2025Q2 earnings call.



Record Revenue and Growth Momentum:
- Halozyme Therapeutics reported total revenue of $326 million for Q2 2025, representing a 41% increase over the same period in the prior year.
- The growth was driven by the strong performance of royalty revenue, which increased 65% year-over-year to $206 million, supported by the success of established blockbuster subcutaneous therapies.

Increased Financial Guidance:
- The company raised its 2025 financial guidance for the second time this year, now projecting total revenue of $1.275 billion to $1.355 billion, reflecting a 26% to 33% growth over 2024.
- The update is primarily due to the strong performance of royalty revenue, which is now expected to reach $825 million to $860 million, reflecting year-over-year growth of 44% to 51%.

Subcutaneous Therapy Success:
- The adoption of subcutaneous delivery of therapies, such as DARZALEX, Phesgo, and VYVGART Hytrulo, is driving significant revenue growth.
- The convenience and improved treatment experience for patients have led to high conversion rates and market penetration, particularly in the frontline setting for DARZALEX.

Expansion in Neurology and Other Indications:
- OCREVUS ZUNOVO, a subcutaneous formulation of Roche's OCREVUS, has seen rapid adoption, with over 7,000 patients treated globally since its launch.
- The convenience of OCREVUS ZUNOVO, with a 10-minute subcutaneous injection, compared to the hours required for intravenous administration, has expanded patient access and increased market reach.