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Royalty revenues climbed 45.8% to $889.4 million, accounting for approximately 66% of total revenues.
Rising royalties from Phesgo, SC Darzalex and Vyvgart Hytrulo are expected to support growth through 2026.
Halozyme Therapeutics (HALO - Free Report) has collaboration agreements with large pharma companies, which use its ENHANZE technology for the development of subcutaneous (SC) formulations of their various approved drugs. The company has several marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s (JNJ - Free Report) Darzalex, argenx’s (ARGX - Free Report) Vyvgart Hytrulo as well as Roche’s (RHHBY - Free Report) Phesgo.
Per the agreements, these companies have been granted worldwide license rights to develop and commercialize their products using ENHANZE technology. These deals generate royalties on sales of marketed drugs, milestone payments and annual license fees, which comprise Halozyme’s top line.
For the first nine months of 2026, Halozyme's total revenues rose 43% year over year to $1.35 billion. Royalty revenues rose 45.8% to $889.4 million, driven by higher royalties from J&J for SC Darzalex, argenx for Vyvgart Hytrulo and Roche for Phesgo. Royalties accounted for approximately 66% of the company’s total revenues during this period.
Reflecting the strength of its overall business performance, Halozyme raised its total revenue guidance for 2026 last week when it reported better-than-expected third-quarter 2026 results.
The company raised its total revenue guidance to $1.86-$1.925 billion, indicating growth of 33-38%. HALO also raised its royalty revenue guidance to $1.24-$1.26 billion from the previous range of $1.22-$1.24 billion. The updated outlook implies year-over-year growth of 42-45%.
We expect Halozyme to sustain strong revenue growth through the remainder of 2026, driven by rising royalty contributions from its partnered drugs. Continued sales growth of established ENHANZE-enabled products is expected to support the company's royalty stream.
HALO's Price Performance, Valuation and Estimates
Year to date, shares of Halozyme have rallied 53% compared with the industry’s rise of 12.3%. The stock has also outperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
Image Source: Zacks Investment Research
From a valuation standpoint, Halozyme is trading at a premium to the industry. Going by the price-to-sales (P/S) ratio, the company’s shares currently trade at 7.01, higher than 2.62 for the industry. The stock is trading below its five-year mean of 7.19.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings per share (EPS) has increased from $8.80 to $8.84 over the past 30 days. During the same time frame, EPS estimates for 2027 have moved up from $10.29 to $10.31.
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Image: Bigstock
Will HALO's Partner Royalties Drive Growth for the Rest of 2026?
Key Takeaways
Halozyme Therapeutics (HALO - Free Report) has collaboration agreements with large pharma companies, which use its ENHANZE technology for the development of subcutaneous (SC) formulations of their various approved drugs. The company has several marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s (JNJ - Free Report) Darzalex, argenx’s (ARGX - Free Report) Vyvgart Hytrulo as well as Roche’s (RHHBY - Free Report) Phesgo.
Per the agreements, these companies have been granted worldwide license rights to develop and commercialize their products using ENHANZE technology. These deals generate royalties on sales of marketed drugs, milestone payments and annual license fees, which comprise Halozyme’s top line.
For the first nine months of 2026, Halozyme's total revenues rose 43% year over year to $1.35 billion. Royalty revenues rose 45.8% to $889.4 million, driven by higher royalties from J&J for SC Darzalex, argenx for Vyvgart Hytrulo and Roche for Phesgo. Royalties accounted for approximately 66% of the company’s total revenues during this period.
Reflecting the strength of its overall business performance, Halozyme raised its total revenue guidance for 2026 last week when it reported better-than-expected third-quarter 2026 results.
The company raised its total revenue guidance to $1.86-$1.925 billion, indicating growth of 33-38%. HALO also raised its royalty revenue guidance to $1.24-$1.26 billion from the previous range of $1.22-$1.24 billion. The updated outlook implies year-over-year growth of 42-45%.
We expect Halozyme to sustain strong revenue growth through the remainder of 2026, driven by rising royalty contributions from its partnered drugs. Continued sales growth of established ENHANZE-enabled products is expected to support the company's royalty stream.
HALO's Price Performance, Valuation and Estimates
Year to date, shares of Halozyme have rallied 53% compared with the industry’s rise of 12.3%. The stock has also outperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
Image Source: Zacks Investment Research
From a valuation standpoint, Halozyme is trading at a premium to the industry. Going by the price-to-sales (P/S) ratio, the company’s shares currently trade at 7.01, higher than 2.62 for the industry. The stock is trading below its five-year mean of 7.19.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings per share (EPS) has increased from $8.80 to $8.84 over the past 30 days. During the same time frame, EPS estimates for 2027 have moved up from $10.29 to $10.31.
Image Source: Zacks Investment Research
HALO's Zacks Rank
Halozyme currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.