Halozyme Therapeutics: A Strong 2024 Performance and Promising Growth Ahead

Halozyme Therapeutics, Inc. (HALO) reported robust financial results for the fourth quarter and full year 2024, marking a significant milestone with total revenue exceeding $1 billion for the first time. The company's strong performance was driven by a 27% increase in royalty revenue, reflecting the growing demand for its ENHANZE drug delivery technology. As Halozyme looks ahead to 2025, investors can expect continued growth and a commitment to shareholder returns.

Halozyme's 2024 financial highlights include:

* Total revenue of $1.015 billion, a 22% increase over the prior year
* Royalty revenue of $571 million, up 27% year over year
* Net income of $444.1 million, a 58% increase over the prior year
* Adjusted EBITDA of $632 million, up 48% year over year
* Non-GAAP EPS of $4.23, a 53% increase over the prior year
* Free cash flow of $468 million, representing 74% of adjusted EBITDA

Halozyme's strong performance in 2024 was driven by the continued success of its ENHANZE technology, which enables rapid subcutaneous drug delivery. The company's royalty revenue growth was fueled by products like DARZALEX subcutaneous, Phesgo, and VYVGART Hytrulo. Additionally, Halozyme extended the patent protection of ENHANZE in Europe to 2029, maintaining its royalty rate for DARZALEX subcutaneous and amivantamab subcutaneous.

Looking ahead to 2025, Halozyme projects continued strong growth, with total revenue expected to reach between $1.15 billion and $1.225 billion, representing growth of 13% to 21% year over year. The company also expects royalty revenue to grow by 27% to 31% year over year, reaching $725 million to $750 million. Halozyme's adjusted EBITDA is projected to grow by 19% to 27% year over year, reaching $755 million to $805 million, and non-GAAP EPS is expected to grow by 17% to 26% year over year, reaching $4.95 to $5.35.

Halozyme's confidence in its growth prospects is further demonstrated by its $250 million accelerated share repurchase program, which is part of a larger $750 million approved program. The company's strong cash position of $596.1 million, up from $336.0 million in 2023, provides significant strategic flexibility for future investments and shareholder returns.

In conclusion, Halozyme Therapeutics' strong 2024 performance, particularly the 27% increase in royalty revenue, reflects the company's strategic positioning and market demand for its ENHANZE technology. With a robust pipeline, expanding market penetration, and a commitment to shareholder returns, Halozyme is well-positioned for continued growth and success in the coming years.