Halozyme Therapeutics ((HALO)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Halozyme Therapeutics’ recent earnings call painted a picture of robust financial growth and strategic advancements, tempered by challenges in intellectual property and regulatory landscapes. The company’s raised guidance underscores a strong outlook, yet potential hurdles remain on the horizon.
Record-Breaking Revenue and Growth
Halozyme Therapeutics reported a remarkable financial performance in Q2 2025, with total revenue reaching $326 million, marking a 41% increase compared to the previous year. Royalty revenue saw an impressive 65% year-over-year growth, totaling $206 million. The company’s adjusted EBITDA also rose by 65% to $226 million, highlighting its strong financial health and operational efficiency.
Raised Financial Guidance
The company has raised its financial guidance for 2025, projecting total revenue between $1.275 billion and $1.355 billion, which represents a growth of 26% to 33% over 2024. Additionally, the full-year royalty revenue guidance has been increased to $825 million to $860 million, reflecting a year-over-year growth of 44% to 51%.
Successful Product Launches and Approvals
Halozyme has achieved significant milestones with new product approvals, including RYBREVANT subcutaneous in Europe and first-time approvals for Opdivo subcutaneous and VYVGART Hytrulo. The launch of OCREVUS ZUNOVO subcutaneous with ENHANZE is also progressing well, with nearly 7,000 patients treated globally.
Strong Performance of Blockbuster Products
The company’s blockbuster products continue to perform exceptionally well. DARZALEX’s revenue increased by nearly 22% to $3.5 billion in the second quarter. Phesgo’s revenue for the first half of 2025 reached CHF 1.2 billion, reflecting a 55% year-over-year growth. VYVGART’s total sales surged by 97% year-over-year in the second quarter, totaling $949 million.
Share Repurchase Program
Halozyme has completed the second $250 million tranche of its $750 million share repurchase plan and has initiated the third $250 million tranche, demonstrating its commitment to returning value to shareholders.
Intellectual Property Litigation with Merck
The company is engaged in ongoing intellectual property litigation with Merck, accusing them of infringing 15 MDASE patents. Several PGRs filed by Merck are scheduled for hearings in March 2026, with decisions expected by June 2026.
Regulatory Concerns with IRA
Potential changes in CMS draft guidance regarding fixed combinations of active ingredients could impact Halozyme’s regulatory environment. The company has proactively submitted a comment letter to CMS to address these concerns.
Forward-Looking Guidance
Halozyme’s forward-looking guidance remains optimistic, with significant growth catalysts identified, including new product approvals and expanded indications. The company expressed confidence in the durability and expansion of its revenue streams despite ongoing IP litigation and regulatory challenges.
In conclusion, Halozyme Therapeutics’ earnings call reflects a positive sentiment driven by strong financial performance and strategic product launches. While the company faces challenges in intellectual property and regulatory areas, its raised guidance and robust growth outlook provide a promising future trajectory.