Halozyme Therapeutics Soars on Q1 Earnings: Here’s Why Investors Should Take Note!

Halozyme Therapeutics (NASDAQ: HALO) just delivered a performance that’s hard to ignore. The biotech giant reported first-quarter 2025 earnings that crushed expectations, with non-GAAP EPS of $1.11—beating estimates by $0.17—and total revenue soaring to $264.9 million, a staggering $34.7 million above forecasts. This isn’t just a good quarter; it’s a signal that Halozyme’s proprietary ENHANZE drug delivery technology is unlocking massive growth. Let’s dive into the numbers—and why this could be a buy now.

The Q1 Surge: What’s Driving Halozyme’s Rocket Fuel?

The earnings report was a masterclass in execution. Revenue jumped 35% year-over-year, fueled by:
- Royalty revenue skyrocketing 39% to $168.2 million, driven by blockbuster products like DARZALEX SC (multiple myeloma), Phesgo (HER2-positive breast cancer), and VYVGART Hytrulo (autoimmune diseases).
- Net income soaring 54% to $118.1 million, while Adjusted EBITDA surged 40% to $162 million.

The ENHANZE platform is the star here. This proprietary technology uses an enzyme to rapidly dissolve subcutaneous tissue, enabling large-volume drug injections in seconds—transforming treatments that once took hours into five-minute procedures. The result? Better patient outcomes, reduced hospital visits, and a $5 billion+ subcutaneous drug delivery market that Halozyme is dominating.

Why the Future Looks Even Brighter

Halozyme didn’t just deliver in Q1; it raised its full-year 2025 guidance to $1.2–$1.28 billion in revenue (up from $1.15–$1.225 billion) and non-GAAP EPS of $5.30–$5.70 (a 25–35% increase over 2024). This confidence is backed by:
1. Pipeline Firepower:
- 10 commercialized ENHANZE-enabled therapies, including RYBREVANT SC (lung cancer) and Tecentriq Hybreza (cancer immunotherapy), which are projected to hit $27 billion in combined sales by 2028.
- New approvals like the FDA’s recent green light for VYVGART Hytrulo’s pre-filled syringe (for myasthenia gravis and CIDP) and the CHMP’s positive opinion for RYBREVANT SC in Europe.

1. Strategic Partnerships:

2. Giants like Roche, Janssen, and argenx rely on ENHANZE to deliver their drugs. For example, Phesgo’s sales rose 52% in Q1, and Darzalex SC holds 95% of the U.S. subcutaneous multiple myeloma market.

3. Shareholder Returns:

4. Halozyme’s $250 million new share repurchase program (part of a $750 million total authorization) is turbocharging EPS growth. Since 2019, buybacks have reduced shares outstanding by 10%, directly boosting per-share profits.

The Elephant in the Room: The Merck Lawsuit

No discussion of Halozyme is complete without mentioning its patent battle with Merck over subcutaneous Keytruda. Halozyme claims Merck’s rival enzyme infringes its patents, seeking damages and an injunction. While this lawsuit introduces risk, the Q1 guidance excludes it—meaning Halozyme’s current momentum is not dependent on a favorable ruling.

Even if Merck wins, Halozyme’s existing partnerships (not reliant on Merck) and $747.9 million in cash provide a strong cushion. Conversely, a win here could add $100–200 million annually in licensing fees. Either way, the ENHANZE platform’s commercial validation (used in over 100 markets) makes it a formidable long-term play.

Conclusion: Halozyme Is a Growth Machine—Buy Now?

The numbers don’t lie. Halozyme is firing on all cylinders: 35% revenue growth, 54% net income growth, and a pipeline that’s doubled its revenue targets through 2028. With $1 billion in annual royalties by 2027 and partnerships with pharma titans, this isn’t a fleeting surge—it’s a sustainable moat.

The risks? The Merck lawsuit and regulatory delays in emerging markets. But with cash reserves up 25% year-over-year and a 2025 EPS growth rate of 25–35%, Halozyme’s stock (currently at $62.10) looks undervalued. The 12-month price target of $69.40 from analysts suggests 12% upside—and that’s without counting the Merck win.

This isn’t just a biotech play—it’s a technology revolution. ENHANZE is changing how drugs are delivered, and Halozyme is the gatekeeper. Investors who bet on this story now could be sitting on a multibagger as subcutaneous therapies conquer the $20 billion+ oncology market and beyond.

Action to Take: Buy HALO near current levels, with a price target of $70–$75 by year-end 2025. The risks are manageable, and the upside is explosive.

Disclosure: The information provided is for educational purposes only. Always conduct your own research or consult a financial advisor before making investment decisions.