Halozyme Therapeutics Surges Ahead: Q1 Growth Fuels $1.2B–$1.28B 2025 Revenue Guidance

Halozyme Therapeutics (NASDAQ: HALO) has delivered a strong start to 2025, reporting a 35% year-over-year revenue jump in Q1 and raising its full-year revenue guidance to $1.2 billion–$1.28 billion. This upward revision underscores the company’s growing momentum, driven by its proprietary ENHANZE drug-delivery technology and expanding partnerships with biopharma giants. Let’s dissect the numbers and assess what this means for investors.

Q1 2025: A Catalyst for Growth

Halozyme’s Q1 revenue surged to $265 million, fueled by a 39% increase in royalty revenue to $168.2 million. This performance exceeded even the most optimistic expectations, prompting the company to revise its 2025 outlook upward. The original guidance of $1.15 billion–$1.225 billion now seems conservative, as management cited “stronger-than-anticipated adoption of partnered therapies” and “accelerated reimbursement milestones” as key drivers.

The revised guidance reflects confidence in its three blockbuster products—Darzalex SC (multiple myeloma), Phesgo (breast cancer), and VYVGART Hytrulo (rare neuromuscular disorders)—alongside newer launches such as Ocrevus Zunovo (multiple sclerosis) and Rybrevant SC (lung cancer). These therapies, all enabled by Halozyme’s ENHANZE technology, are critical to royalty revenue, which now accounts for over 60% of total earnings.

Breaking Down the Numbers

The updated guidance highlights two critical areas:
1. Royalty Revenue Growth:
- Pre-revision guidance: $725 million–$750 million
- New guidance: $750 million–$785 million
- Growth drivers: Expanded use of Darzalex SC in Europe, U.S. FDA approval of VYVGART Hytrulo for rare neuromuscular diseases, and faster-than-expected uptake of Ocrevus Zunovo.

1. Adjusted EBITDA Expansion:
2. Pre-revision guidance: $755 million–$805 million
3. New guidance: $790 million–$840 million
4. Why it matters: Strong EBITDA growth signals improved operational efficiency, with R&D expenses dropping to 5% of revenue (from 8% in 2024) as partnerships reduce upfront costs.

The Pipeline and Future Catalysts

Halozyme’s outlook isn’t just about current products—it’s also about its pipeline. Key upcoming milestones include:
- Tecentriq Hybreza (Roche’s PD-L1 inhibitor): Expected EU approval in Q3 2025 for triple-negative breast cancer.
- Opdivo Qvantig (BMS’s checkpoint inhibitor): U.S. FDA submission for non-small cell lung cancer by end-2025.
- 11 additional growth catalysts: Including regulatory approvals, label expansions, and new partnerships (e.g., Takeda’s immune globulin SC in Phase 3 trials).

CEO Dr. Helen Torley emphasized that these opportunities could “unlock hundreds of millions in future royalties,” positioning Halozyme as a partner of choice for subcutaneous drug delivery.

Valuation and Risks

Halozyme’s valuation remains reasonable. At a trailing P/E of 18.5x (vs. the sector average of 22x), the stock trades at a discount despite its growth trajectory. However, risks persist:
- Regulatory delays: Delays in approvals for Tecentriq Hybreza or Opdivo Qvantig could pressure guidance.
- Tariff exposure: While the company accounts for existing tariffs in its guidance, further trade disputes could impact partner pricing.
- Competitor threats: Merck’s patent infringement lawsuit against Halozyme’s ENHANZE technology, though ongoing, hasn’t yet disrupted operations.

Conclusion: A Strong Buy for Growth Investors

Halozyme’s revised guidance to $1.2 billion–$1.28 billion for 2025 is a clear vote of confidence in its technology and partnerships. With royalty revenue set to grow by 24%–30% year-over-year and Adjusted EBITDA margins expanding, the company is well-positioned to capitalize on its pipeline and partnerships.

The Q1 results—35% revenue growth and a 39% jump in royalties—suggest Halozyme is executing flawlessly. With $250 million remaining in its $750 million share repurchase program and 11 major catalysts on the horizon, the stock’s 2025 EPS guidance of $5.30–$5.70 (up from $4.95–$5.35) appears achievable.

For investors, Halozyme represents a compelling opportunity in the biotech sector. Its focus on high-margin royalties, lean operations, and a robust pipeline make it a top pick for those seeking steady growth in an uncertain market.

In a sector where execution often lags ambition, Halozyme is proving that it can deliver—and then some.