Halozyme Therapeutics ((HALO)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Halozyme Therapeutics has delivered a largely positive earnings call, showcasing record-breaking achievements and a strong financial performance. Despite minor setbacks, such as the delay in Amivantamab subcutaneous approval and temporary royalty rate impacts, the company’s strategic achievements and optimistic outlook for 2025 and beyond were emphasized, leaving stakeholders with a sense of confidence.
Record-Breaking Revenue
Halozyme Therapeutics announced that its total revenue exceeded $1 billion for the first time, marking a significant 22% growth year-over-year. This remarkable achievement was primarily driven by strong royalty revenue and effective strategic management.
Strong Royalty Revenue Growth
The company reported a 27% year-over-year increase in royalty revenue, reaching $571 million. This impressive growth exceeded the company’s previously raised guidance, further solidifying its financial strength.
DARZALEX Subcutaneous Growth
Johnson & Johnson reported a 24% growth in worldwide sales of DARZALEX, driven by its subcutaneous version, which now holds a dominant 95% share of total sales in the US.
Phesgo Adoption
Phesgo sales surged by 72% year-over-year, demonstrating strong uptake across all regions. The product reached CHF1.7 billion in sales for the full year 2024, highlighting its growing acceptance and demand.
VYVGART Hytrulo Success
VYVGART Hytrulo with ENHANZE contributed significantly to Halozyme’s success, with full year revenue reaching $2.2 billion. Its ease of use and adoption in CIDP were key factors in driving this growth.
New Approvals and Pipeline Expansion
Halozyme achieved significant approvals in 2024, including Ocrevus Zunovo, Tecentriq Hybreza, and Opdivo Qvantiq. These are expected to contribute meaningfully to the company’s growth from 2026 onwards.
Financial Strength and Guidance
The company’s adjusted EBITDA increased by 48% to $632 million, reflecting its robust financial health. With a strong balance sheet, Halozyme projects continued growth in 2025, with total revenue anticipated to range between $1.15 billion and $1.225 billion.
Amivantamab Subcutaneous Approval Delay
A delay in the US approval of Amivantamab subcutaneous occurred due to manufacturing inspection issues, as Johnson & Johnson received a complete response letter from the FDA.
Royalty Rate Reset Impact
Halozyme anticipates a temporary decrease in royalty revenue in Q1 2025 due to annual contractual rate resets, notably impacting DARZALEX. However, the overall outlook remains positive.
Forward-Looking Guidance
Looking ahead, Halozyme offers a promising forecast for 2025, with projected total revenue between $1.15 billion and $1.225 billion, reflecting a 13% to 21% increase. Royalty revenues are expected to grow between 27% and 31%, driven by key products such as DARZALEX subcutaneous, Phesgo, and VYVGART Hytrulo. The company also predicts an adjusted EBITDA range of $755 million to $805 million, alongside non-GAAP EPS growth, indicating a continued upward trajectory supported by a robust pipeline and strategic partnerships.
In summary, Halozyme Therapeutics’ latest earnings call paints a promising picture of growth and success. Despite minor challenges, the company’s record-breaking financial performance and strategic advancements have set a positive tone for the future, reinforcing confidence in its long-term prospects.
