Halozyme Projects Royalties to Double by 2028 with 75% EBITDA
Company shares traded at $70.98 on February 20, registering a trailing P/E of 16.41 and forward P/E of 8.19. Its ENHANZE platform royalties on DARZALEX SC, Phesgo and VYVGART Hytrulo are projected to double by 2028 while adjusted EBITDA margins climb from 59–61% to 74–75%.
1. Bull Case Summary
The bullish thesis highlights Halozyme shares trading at $70.98 on February 20 with a trailing P/E of 16.41 and forward P/E of 8.19, underscoring valuation appeal relative to growth prospects.
2. ENHANZE Platform and Royalty Model
Its ENHANZE platform converts complex IV biologics into five-minute subcutaneous injections for drugs such as DARZALEX SC, Phesgo and VYVGART Hytrulo, creating a high-margin, annuity-like royalty stream across multiple partners.
3. Financial Outlook and Pipeline
Royalties are expected to potentially double by 2028, with adjusted EBITDA margins rising from 59–61% in 2024 to 74–75%, backed by an extensive ENHANZE pipeline and the Hypercon acquisition enabling ultra-concentrated at-home biologics under patent protection into the 2040s.
4. Risks and Price Targets
Key risks include patent expirations, litigation, partner concentration and an anticipated 2030–2035 royalty cliff, yet a $75–$90 price target by 2026 reflects confidence in recurring revenue growth and operational leverage.