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Halozyme's (HALO) Q3 Earnings and Revenues Surpass Estimates
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Halozyme Therapeutics, Inc. (HALO - Free Report) reported third-quarter 2022 adjusted earnings of 74 cents per share, beating the Zacks Consensus Estimate of 52 cents. Adjusted earnings were also higher than our estimate of 56 cents per share. The company’s earnings were 55 cents per share in the year-ago period.
Total revenues increased 80% year over year to $209 million, primarily driven by strong royalty payments from J&J (JNJ - Free Report) for subcutaneous Darzalex (daratumumab). The addition of product sales following the acquisition of Antares Pharma in May and higher collaboration revenues also boosted the top line. The top line beat the Zacks Consensus Estimate of $188 million.
Total revenues were also higher than our estimate of $187.7 million in the reported quarter.
Shares of Halozyme were up 4.2% in after-hours trading on Tuesday following the better-than-expected results. The stock has rallied 13.9% this year so far against the industry’s decline of 21.6%.
Image Source: Zacks Investment Research
Quarterly Highlights
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Several companies are using Halozyme’s ENHANZE technology for developing a subcutaneous formulation of their currently marketed drugs. The company has five marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s Darzalex and Roche’s (RHHBY - Free Report) Phesgo.
Royalty revenues were $99.6 million in the third quarter, up 70% from the year-ago quarter, mainly driven by robust demand for J&J’s subcutaneous Darzalex and to a lesser extent, Roche’s Phesgo. Royalty revenues generated nearly 47.6% of the total revenues for the company during the third quarter.
Product sales were $61.4 million in the quarter, significantly up from the year-ago quarter. The company supplies API to ENHANZE partners like J&J and Roche.
Revenues under collaborative agreements were $48 million, up almost 49% year over year. This increase was due to milestone recognitions from Roche and Bristol Myers.
Research and development expenses increased 96.5% year over year to $16.7 million, mainly due to planned investments in the ENHANZE technology, as well as one-time compensation costs incurred by HALO related to the Antares Pharma acquisition.
Selling, general and administrative expenses were $34.5 million, significantly up from the year-ago period. The rise was mainly on account of one-time compensation costs incurred by HALO for the Antares Pharma acquisition as well as higher compensation expenses related to the ongoing combined larger workforce.
2022 Guidance
Halozyme reiterated its guidance for revenues and earnings that it had provided in August.
The company expects total revenues in the range of $655-$685 million in 2022.
The revenue guidance indicates year-over-year growth of 48-55%. It expects the Antares transaction to contribute $115-$125 million in revenues.
HALO expects revenues from royalties to increase more than 70% year over year to approximately $350-$360 million, up from the previously provided guidance of $340-$350 million, on the back of strong uptake of the subcutaneous formulation of J&J’s Darzalex, growth in Roche’s Phesgo and additional royalty revenues from auto-injector devices following the Antares acquisition.
The company expects adjusted earnings to be in the range of $2.10-$2.25 per share.
Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise
Loss per share estimates for ASLAN Pharmaceuticals have narrowed 6.1% for 2022 and 5.7% for 2023 in the past 60 days.
Earnings of ASLAN Pharmaceuticals surpassed estimates in two of the trailing four quarters and missed the mark on the remaining two occasions. ASLN witnessed an earnings surprise of 1.64% on average.
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Halozyme's (HALO) Q3 Earnings and Revenues Surpass Estimates
Halozyme Therapeutics, Inc. (HALO - Free Report) reported third-quarter 2022 adjusted earnings of 74 cents per share, beating the Zacks Consensus Estimate of 52 cents. Adjusted earnings were also higher than our estimate of 56 cents per share. The company’s earnings were 55 cents per share in the year-ago period.
Total revenues increased 80% year over year to $209 million, primarily driven by strong royalty payments from J&J (JNJ - Free Report) for subcutaneous Darzalex (daratumumab). The addition of product sales following the acquisition of Antares Pharma in May and higher collaboration revenues also boosted the top line. The top line beat the Zacks Consensus Estimate of $188 million.
Total revenues were also higher than our estimate of $187.7 million in the reported quarter.
Shares of Halozyme were up 4.2% in after-hours trading on Tuesday following the better-than-expected results. The stock has rallied 13.9% this year so far against the industry’s decline of 21.6%.
Image Source: Zacks Investment Research
Quarterly Highlights
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Several companies are using Halozyme’s ENHANZE technology for developing a subcutaneous formulation of their currently marketed drugs. The company has five marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s Darzalex and Roche’s (RHHBY - Free Report) Phesgo.
Royalty revenues were $99.6 million in the third quarter, up 70% from the year-ago quarter, mainly driven by robust demand for J&J’s subcutaneous Darzalex and to a lesser extent, Roche’s Phesgo. Royalty revenues generated nearly 47.6% of the total revenues for the company during the third quarter.
Product sales were $61.4 million in the quarter, significantly up from the year-ago quarter. The company supplies API to ENHANZE partners like J&J and Roche.
Revenues under collaborative agreements were $48 million, up almost 49% year over year. This increase was due to milestone recognitions from Roche and Bristol Myers.
Research and development expenses increased 96.5% year over year to $16.7 million, mainly due to planned investments in the ENHANZE technology, as well as one-time compensation costs incurred by HALO related to the Antares Pharma acquisition.
Selling, general and administrative expenses were $34.5 million, significantly up from the year-ago period. The rise was mainly on account of one-time compensation costs incurred by HALO for the Antares Pharma acquisition as well as higher compensation expenses related to the ongoing combined larger workforce.
2022 Guidance
Halozyme reiterated its guidance for revenues and earnings that it had provided in August.
The company expects total revenues in the range of $655-$685 million in 2022.
The revenue guidance indicates year-over-year growth of 48-55%. It expects the Antares transaction to contribute $115-$125 million in revenues.
HALO expects revenues from royalties to increase more than 70% year over year to approximately $350-$360 million, up from the previously provided guidance of $340-$350 million, on the back of strong uptake of the subcutaneous formulation of J&J’s Darzalex, growth in Roche’s Phesgo and additional royalty revenues from auto-injector devices following the Antares acquisition.
The company expects adjusted earnings to be in the range of $2.10-$2.25 per share.
Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise
Halozyme Therapeutics, Inc. price-consensus-eps-surprise-chart | Halozyme Therapeutics, Inc. Quote
Zacks Rank & Stock to Consider
Halozyme currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is ASLAN Pharmaceuticals Limited (ASLN - Free Report) , which has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Loss per share estimates for ASLAN Pharmaceuticals have narrowed 6.1% for 2022 and 5.7% for 2023 in the past 60 days.
Earnings of ASLAN Pharmaceuticals surpassed estimates in two of the trailing four quarters and missed the mark on the remaining two occasions. ASLN witnessed an earnings surprise of 1.64% on average.