Halozyme Therapeutics (NASDAQ:HALO) executives highlighted what they described as a “significant and value-creating” 2025, pointing to accelerating royalty growth from ENHANZE-enabled products, expansion into additional subcutaneous drug delivery technologies through acquisitions, and a widening pipeline expected to support longer-term revenue durability.
2025 highlights: portfolio expansion and new collaborations
On the call, President and CEO Dr. Helen Torley said Halozyme expanded its portfolio “from two to four subcutaneous drug delivery technologies” in the fourth quarter through two acquisitions: Elektrofi’s Hypercon technology and Surf Bio’s hyperconcentration technology. Torley noted both technologies include “long-duration IP into the mid-2040s” and are intended to broaden Halozyme’s subcutaneous delivery capabilities across targets, modalities, and therapeutic areas.
- DARZALEX Faspro approval in the U.S. for smoldering multiple myeloma, and Johnson & Johnson’s announcement of an additional approval for newly diagnosed multiple myeloma patients, bringing the product to 12 indications overall, according to management.
- RYBREVANT subcutaneous with ENHANZE receiving regulatory approvals in the U.S., Japan, and China.
- Roche nominating a new ENHANZE target.
- argenx expanding its ARGX-121 Phase 1 study with ENHANZE.
- Three new ENHANZE collaboration and licensing agreements signed late in 2025, expanding beyond oncology into obesity and inflammatory bowel disease, with clinical planning underway for all three products.
In addition, Halozyme said it signed a commercial licensing and supply agreement with Viatris for its small volume auto-injector and continued progress with two auto-injector development agreements signed in 2025 with current partners.
ENHANZE-enabled products: royalties driven by multiple blockbusters
Management emphasized continued growth in royalty contributions from ENHANZE-enabled products, highlighting DARZALEX subcutaneous, Phesgo, and VYVGART Hytrulo as key drivers.
For DARZALEX, Torley said Johnson & Johnson reported total DARZALEX sales grew 22% operationally in 2025 to $14.4 billion. Halozyme’s royalty revenue from DARZALEX was $483 million, up 29% year over year, according to the company. Torley added that DARZALEX subcutaneous represents 97% of U.S. sales and that sales are projected to exceed $18 billion in 2028.
Torley said Phesgo sales grew 48% year over year in 2025 to CHF 2.4 billion (approximately $3 billion), generating $105.6 million in Halozyme royalty revenue, up 51% year over year. She added Roche increased its global conversion goal to 60% after surpassing a 50% target, with conversion from IV Perjeta increasing to 54% in the quarter.
For VYVGART, Torley said VYVGART and VYVGART Hytrulo grew 90% year over year to $4.15 billion, resulting in $157.2 million in royalty revenue for Halozyme, up 444% year over year. She pointed to the launch and uptake of a prefilled syringe for gMG and CIDP as a milestone enabling both at-home and in-clinic administration.
Torley also discussed recently launched ENHANZE-enabled subcutaneous versions of Ocrevus, Opdivo, RYBREVANT, and Tecentriq, calling them early in their growth trajectories. She cited Roche’s report of 17,500 patients on Ocrevus Zunovo, including a 5,000 patient increase from the third quarter, and noted Roche increased sales expectations for the Ocrevus franchise to CHF 9 billion. For Opdivo Qvantig, Torley said Bristol Myers Squibb reported $133 million in sales in the fourth quarter and pointed to adoption following issuance of a permanent J-code in July 2025.
Financial results: record revenue growth, balance sheet actions
Chief Financial Officer Nicole LaBrosse said total revenue increased 38% in 2025 to a record $1.4 billion, driven largely by royalties. Total royalty revenue rose 52% to $867.8 million. Fourth-quarter total revenue increased 52% to $451.8 million, including $258 million in royalty revenue, up 51% year over year.
LaBrosse reported 2025 net income of $316.9 million, which included a $285 million acquired in-process R&D expense related to the Surf Bio acquisition recorded in the fourth quarter. GAAP diluted EPS was $2.50 (down from $3.43 in 2024) and non-GAAP diluted EPS was $4.15 (down from $4.23 in 2024). LaBrosse said both GAAP and non-GAAP EPS included an unfavorable impact of approximately $2.30 per share from the Surf Bio acquired IPR&D expense.
On the balance sheet, LaBrosse said Halozyme issued $750 million of 2031 convertible notes and $750 million of 2032 convertible notes, used a portion of proceeds to repurchase parts of its 2027 and 2028 notes, and upsized its revolving credit facility to $750 million. She said the company ended the year at 2.1x net debt to EBITDA under its credit agreement calculation (excluding acquired IPR&D) and expects to delever to below 1x by the end of 2026.
New opportunity: ENHANZE with antibody-drug conjugates
Chief Scientific Officer Chris Wahl presented preclinical data evaluating ENHANZE for subcutaneous delivery of antibody-drug conjugates (ADCs). Wahl said subcutaneous conversion for ADCs has been limited by concerns about injection-site toxicity and dose-limiting adverse events associated with peak concentration (Cmax).
Wahl described experiments testing two approved ADCs in separate preclinical studies, comparing equivalent doses delivered IV, subcutaneously with ENHANZE, or subcutaneously without ENHANZE. He said the data supported more rapid absorption with ENHANZE, resulting in lower levels of ADC and payload at the injection site. He reported that at 24 hours, injection-site reductions were 87% for one ADC and over 50% for the other versus subcutaneous delivery alone. He also said skin biopsies reviewed by pathologists were reported as normal in those and additional experiments.
In serum pharmacokinetics, Wahl said Cmax was significantly decreased with subcutaneous administration versus IV, with Cmax 75% lower for one ADC and 61% lower for the other. He added that PK modeling suggested higher doses could potentially be administered subcutaneously with ENHANZE to achieve equivalent or higher overall exposure while maintaining a lower peak concentration than IV. Wahl said he discussed the data with multiple pharma and biotech companies in the second half of 2025 and into 2026 and characterized feedback as supporting both feasibility and the potential for benefit-risk improvements.
2026 outlook: guidance, licensing goals, and litigation updates
For 2026, management said it expects six new ENHANZE programs and two new Hypercon programs to enter Phase 1, bringing the development portfolio to 15 products. Torley said Halozyme expects to sign at least three new licensing agreements in 2026, including one to three new ENHANZE collaborations and one to two new Hypercon collaborations.
LaBrosse reiterated 2026 guidance calling for total revenue of $1.71 billion to $1.81 billion and royalty revenue of $1.13 billion to $1.17 billion. The company guided to adjusted EBITDA of $1.125 billion to $1.205 billion, including about $60 million of new Hypercon and Surf Bio investment, and non-GAAP diluted EPS of $7.75 to $8.25. She also provided quarterly cadence commentary, saying first-quarter 2026 royalty revenue is expected to be 5% to 10% lower than the fourth quarter of 2025 due to annual contractual rate resets, with sequential growth thereafter, and that milestones are expected to be weighted to the second half of the year.
During Q&A, Torley addressed questions about the DARZALEX collaboration, stating the licensing agreement with Johnson & Johnson ends in 2032 and Halozyme expects to enter into discussions closer to that time to extend the agreement and supply of API. On legal matters, Torley said the IPR filed against Alteogen should be viewed separately from the infringement case against Merck. She added Halozyme is awaiting a scheduling order in the district court case, has been allowed certain discovery including access to the Merck-Alteogen agreement and Keytruda SC for testing, and expects both parties to appear before the district court in June following output of the PTAB.
About Halozyme Therapeutics (NASDAQ:HALO)
Halozyme Therapeutics, Inc is a biopharmaceutical company headquartered in San Diego, California, that specializes in the development and commercialization of novel drug-delivery technologies. Founded in 1998, Halozyme focuses on enabling subcutaneous administration of biologic therapies through its proprietary platforms. The company’s core mission is to improve patient access and convenience while maintaining efficacy and safety profiles comparable to or better than traditional routes of administration.
The company’s flagship technology, ENHANZE®, is based on recombinant human hyaluronidase PH20 (rHuPH20), an enzyme that transiently degrades hyaluronan in the extracellular matrix.
