Halozyme (HALO) AI Stock Analysis

• Market Cap: $7.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.91
• Revenue Growth: 22.44%
• EPS Growth: 63.47%
• Country: US
• Employees: 350
• Sector: Healthcare
• Sector Strength: 57
• Industry: Biotechnology
• EPS (TTM): 3.43
• Shares Outstanding: 123,533,310
• 10 Day Avg. Volume: 1,202,232
• 30 Day Avg. Volume: 1,603,726
• PEG Ratio: 0.28
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.30
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $66.44
• Price Target Upside: 8.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Halozyme's overall score is bolstered by strong financial performance and a positive earnings outlook. Technical indicators suggest caution due to limited momentum, while valuation metrics show the stock is fairly priced.

Positive Factors

Legal Decisions

A legal decision in Halozyme's favor in the IP case may prove a major catalyst for the stock.

Patent Position

Halozyme's confidence in protecting its technology suggests strong positioning against potential competitors.

Royalty Revenue

Successfully defending its patents could lead to potential licensing revenues from Merck, bolstering its financial position and potentially implying additional avenues of revenues from other drugs where companies are looking to develop injectable versions.

Negative Factors

Commercial Protection

A SQ formulation of Keytruda is unlikely to provide significant commercial protection from biosimilars based on prior precedent with Roche's SQ Herceptin/Rituxan launches ahead of biosimilar competition.

Intellectual Property

Merck has initiated proceedings with U.S. patent regulators to challenge the validity of certain Halozyme patents, arguing they are overly broad.

Patent Challenges

If Merck's challenge prevails, Halozyme might lose out on potential income and therefore raise concerns over the validity/defensibility of HALO's subQ co-formulation patents.

Halozyme Business Overview & Revenue Model

Company Description

Halozyme Therapeutics, Inc. operates as a biopharma technology platform company in the United States, Switzerland, Ireland, Belgium, Japan, and internationally. The company's products are based on the ENHANZE drug delivery technology, a patented recombinant human hyaluronidase enzyme (rHuPH20) that enables the subcutaneous delivery of injectable biologics, such as monoclonal antibodies and other therapeutic molecules, as well as small molecules and fluids. Its flagship product is Hylenex recombinant, a formulation of rHuPH20 to facilitate subcutaneous fluid administration for achieving hydration to enhance the dispersion and absorption of other injected drugs in subcutaneous urography and to improve resorption of radiopaque agents. The company also develops Perjeta; RITUXAN HYCELA and MabThera SC for the treatment of non-Hodgkin lymphoma and chronic lymphocytic leukemia (CLL); RITUXAN SC for patients with CLL; and HYQVIA for the treatment of immunodeficiency disorders. In addition, it is developing Tecentriq for non-small cell lung cancer; OCREVUS for multiple sclerosis; DARZALEX for the treatment of patients with amyloidosis, smoldering myeloma, and multiple myeloma; nivolumab for the treatment of solid tumors; ARGX-113, a human neonatal Fc receptor; ARGX-117 to treat autoimmune diseases; and BMS-986179, an anti-CD-73 antibody. The company has collaborations with F. Hoffmann-La Roche, Ltd.; Hoffmann-La Roche, Inc.; Baxalta US Inc.; Baxalta GmbH; Pfizer Inc.; Janssen Biotech, Inc.; AbbVie, Inc.; Eli Lilly and Company; Bristol-Myers Squibb Company; Alexion Pharma Holding; ARGENX BVBA; Horizon Therapeutics plc; National Institute of Allergy and Infectious Diseases; Centre for the AIDS Programme of Research in South Africa; and ViiV Healthcare Limited for small and large molecule targets for the treatment and prevention of HIV. Halozyme Therapeutics, Inc. was founded in 1998 and is based in San Diego, California.

How the Company Makes Money

Halozyme makes money primarily through collaborations and licensing agreements with pharmaceutical and biotechnology companies. The company's ENHANZE technology is licensed to partners who integrate it into their own therapeutic products. Halozyme receives revenue from these partnerships in the form of upfront payments, milestone payments, and royalties on sales of products that incorporate the ENHANZE technology. Additionally, the company may earn revenue from direct product sales and other strategic partnerships that leverage its proprietary platforms. Key partnerships with major pharmaceutical companies significantly contribute to Halozyme's revenue streams.

Halozyme Financial Statement Overview

Summary

Halozyme exhibits strong financial health with impressive revenue and profit growth, effective cost management, and robust cash flows. The elimination of debt enhances financial stability, although maintaining sustainable equity growth remains crucial.

Income Statement

Halozyme has demonstrated strong revenue growth, with a significant increase from $267.6M in 2020 to over $1B in 2024, reflecting robust market expansion. Gross profit margin remains high at 84.3% in 2024, showcasing effective cost management. Net profit margin has improved to 43.7%, indicating enhanced profitability. Both EBIT and EBITDA margins are impressive at 54.3% in 2024, highlighting operational efficiency.

Balance Sheet

The company has improved its financial stability, with stockholders' equity rising to $363.8M in 2024. The debt-to-equity ratio has improved significantly, with total debt being eliminated, enhancing financial resilience. The equity ratio has improved, indicating a stronger capital structure. However, the ROE at 122% reflects high profitability but could also point to a need for sustainable equity growth.

Cash Flow

Halozyme has shown strong cash flow performance, with free cash flow growing consistently, reaching $468.4M in 2024. The operating cash flow to net income ratio is robust at 1.08, showcasing effective conversion of income into cash. Free cash flow to net income ratio stands at 1.06, reflecting efficient cash management. This solid cash flow supports future growth and operational flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.02B	829.25M	660.12M	443.31M	267.59M
	Gross Profit
855.91M	636.89M	520.81M	361.90M	224.23M
	EBIT
551.48M	337.57M	267.53M	275.90M	144.25M
	EBITDA
656.54M	451.95M	315.51M	259.04M	152.96M
	Net Income Common Stockholders
444.09M	281.59M	202.13M	402.71M	129.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
596.07M	336.00M	362.79M	740.92M	368.01M
	Total Assets
2.06B	1.73B	1.84B	1.10B	579.92M
	Total Debt
1.51B	1.50B	1.51B	876.67M	397.23M
	Net Debt
1.39B	1.38B	1.27B	757.96M	249.53M
	Total Liabilities
1.70B	1.65B	1.67B	907.48M	428.88M
	Stockholders Equity
363.82M	83.81M	169.80M	196.95M	151.05M
Cash Flow		Free Cash Flow
468.37M	373.28M	235.30M	297.98M	52.95M
	Operating Cash Flow
479.06M	388.57M	240.11M	299.44M	55.45M
	Investing Cash Flow
-262.72M	-96.91M	-487.00M	-406.29M	78.35M
	Financing Cash Flow
-218.86M	-407.99M	362.37M	77.86M	-106.28M

Halozyme Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HALO, the sentiment is Positive. The current price of 61.19 is above the 20-day moving average (MA) of 59.66, above the 50-day MA of 60.74, and above the 200-day MA of 56.19, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HALO.

Halozyme Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CORT	78 Outperform	$7.68B	59.01	23.55%	―	39.94%	32.10%
JAZZ	76 Outperform	$7.40B	13.80	14.31%	―	6.12%	38.88%
HALO	75 Outperform	$7.56B	17.83	198.42%	―	22.44%	63.47%
MDGL	56 Neutral	$7.00B	―	-50.16%	―	―	-10.89%
ASND	52 Neutral	$10.30B	―	357.68%	―	36.09%	22.96%
Sector *	52 Neutral	$5.35B	3.96	-42.60%	2.86%	17.58%	1.27%
ROIV	51 Neutral	$8.19B	1.93	-7.10%	―	-20.84%	-102.48%

Halozyme Corporate Events

Halozyme Announces Retirement of Chief Technical Officer

On March 17, 2025, Michael J. LaBarre, Senior Vice President and Chief Technical Officer of Halozyme Therapeutics, Inc., announced his retirement, effective immediately. The company acknowledged his significant contributions to their ENHANZE® drug delivery technology, marking a notable transition in their leadership team.

Halozyme Board Member Connie Matsui Steps Down

On February 11, 2025, Connie L. Matsui, a long-serving member of Halozyme Therapeutics’ Board of Directors, announced her decision not to stand for reelection at the 2025 annual stockholders’ meeting. Her departure is amicable and not due to any disagreements with the company’s operations or strategies, and her contribution over nearly 18 years has been appreciated by the management and board.