Halozyme surges on raised guidance, royalty revenue to top $1 billion
Drug delivery specialist accelerates growth timeline as ENHANZE technology gains market traction
Halozyme Therapeutics shares rallied on Tuesday after the biotechnology company raised its 2025 revenue estimates and increased financial guidance for 2026, projecting its royalty revenue will exceed $1 billion a year earlier than previously expected.
The San Diego-based company now expects preliminary unaudited 2025 total revenue of $1.385 billion to $1.4 billion, representing 36% to 38% year-over-year growth, significantly above analyst projections of $339.1 million. Royalty revenue is forecast to reach $865 million to $870 million, reflecting 51% to 52% annual growth.
"Our increased multi-year guidance reflects both the strength of our core ENHANZE business and the exceptional momentum we built in 2025," said Dr. Helen Torley, President and Chief Executive Officer. "In 2025, we expect royalty revenue growth to exceed 50% year-over-year, a clear demonstration of the strength of our business model and the durable demand for ENHANZE-enabled products globally."
For 2026, Halozyme raised its total revenue guidance to a range of $1.71 billion to $1.81 billion, representing 23% to 30% growth over 2025 projections. Royalty revenue is expected to increase to $1.13 billion to $1.17 billion, with growth of 30% to 35%. The company also raised its adjusted EBITDA outlook to $1.125 billion to $1.205 billion and projected non-GAAP diluted earnings per share of $7.75 to $8.25.
The accelerated timeline for reaching $1 billion in royalty revenue in 2026 comes as Halozyme's ENHANZE technology continues to gain market adoption. The platform enables subcutaneous administration of intravenous drugs, improving patient convenience across multiple therapeutic areas. The company now has ten ENHANZE-approved products, with Rybrevant Faspro becoming the latest to receive global approvals.
Halozyme's strategic positioning has been strengthened through recent acquisitions. In December 2025, the company completed the acquisition of Surf Bio, adding hyperconcentration technologies with intellectual property extending into the mid-2040s. Earlier acquisitions include Elektrofi, further expanding the company's drug delivery portfolio and diversifying its value creation pathways.
The updated 2026 guidance incorporates approximately $60 million in investments for the newly acquired Hypercon™ and Surf Bio platforms, which were not included in previous guidance. Despite these additional investments, the company maintained strong profitability projections with adjusted EBITDA margins expected to remain robust.
"In the near-term, our strong 2026 total revenue expectations of 23% to 30% year-over-year growth underscore the strength of our royalty revenue, which is projected to exceed $1 billion in 2026," Dr. Torley added. "This is one year earlier than previously projected."
Halozyme currently anticipates having 15 partner programs in development and signing three or more new drug delivery licensing agreements by the end of 2026. The company expects these partnerships to support durable revenue growth well into the 2040s, reinforcing its long-term growth profile.
Analysts have responded positively to the guidance raise. The stock currently carries an average analyst price target of $77.12, according to recent data, with 19 Wall Street analysts maintaining a median price target of $75.00, ranging from $58.00 to $92.00. TD Cowen recently maintained a "Buy" rating and raised its price target to $90.00, while HC Wainwright reiterated a "Buy" rating with a $90.00 price target.
Shares of Halozyme, which have gained nearly 40% year-to-date, closed at $70.22 on Tuesday. The company's market capitalization stands at approximately $8.2 billion. With a forward price-to-earnings ratio of 8.34, the stock trades at a discount to its trailing multiple of 14.74, suggesting analysts expect continued earnings acceleration.
The company's business model relies heavily on royalty payments from pharmaceutical partners utilizing ENHANZE technology. Key products generating significant royalties include subcutaneous versions of Darzalex, Phesgo, and Vyvgart Hytrulo. The technology has gained particular traction in oncology and autoimmune therapies, where convenient at-home administration is increasingly valued by patients and healthcare providers.
Halozyme's updated guidance reinforces the company's transition from a platform technology provider to a diversified drug delivery powerhouse with multiple growth vectors beyond its core royalty business. The acquisitions of Elektrofi and Surf Bio position the company to capture additional value from emerging therapeutic modalities requiring specialized formulation and delivery solutions.