Morgan Stanley recently upgraded its rating on Halozyme to overweight, citing anticipated benefits from the proposed ORPHAN Cures Act. The bipartisan bill aims to preserve orphan-drug incentives in the Inflation Reduction Act and spur follow-on investment into treatments for rare diseases. Analysts believe that enhanced regulatory support will accelerate partner adoption of ENHANZE technology and underpin further royalty expansions, particularly in underserved therapeutic areas. In its second quarter, Halozyme Therapeutics reported non-GAAP EPS of $1.54, a 69.2% increase from $0.91 a year ago and comfortably ahead of the consensus of $1.24. GAAP revenue reached $325.7 million, up 41% year-over-year and 13.9% above analyst estimates. Royalty revenue surged 65% to $205.6 million, driven by increased sales of ENHANZE-enabled therapies including subcutaneous formulations of oncology and neuromuscular treatments. Adjusted EBITDA climbed 64.6% to $225.5 million, while net income rose 77.3% to $165.2 million. Capital allocation included a $303 million share repurchase program executed in the quarter, underscoring management’s confidence in the cash-flow model. Short interest in Halozyme has fallen by 5.58% since the prior reporting period, with 9.60 million shares currently sold short—equating to 10.67% of the float. At recent trading volumes, it would take short sellers approximately 6.16 days to cover their positions. By comparison, the peer-group average short interest stands at 9.72% of float, indicating that investor bearishness toward Halozyme remains elevated but easing. This trend suggests a modest shift toward more bullish sentiment as the company delivers on its royalty growth strategy. Following the strong first half, management raised its 2025 guidance across all key metrics. Total revenue is now expected in a range of $1.275–1.355 billion (previously $1.200–1.280 billion), while royalty revenue forecast was lifted to $825–860 million. Adjusted EBITDA guidance increased to $865–915 million and non-GAAP diluted EPS is projected at $6.00–6.40. These revised targets imply full-year growth rates in the high double digits, driven by ongoing launches of ENHANZE-powered therapies and a growing milestone schedule tied to partner regulatory approvals.
Morgan Stanley recently upgraded its rating on Halozyme to overweight, citing anticipated benefits from the proposed ORPHAN Cures Act. The bipartisan bill aims to preserve orphan-drug incentives in the Inflation Reduction Act and spur follow-on investment into treatments for rare diseases. Analysts believe that enhanced regulatory support will accelerate partner adoption of ENHANZE technology and underpin further royalty expansions, particularly in underserved therapeutic areas. In its second quarter, Halozyme Therapeutics reported non-GAAP EPS of $1.54, a 69.2% increase from $0.91 a year ago and comfortably ahead of the consensus of $1.24. GAAP revenue reached $325.7 million, up 41% year-over-year and 13.9% above analyst estimates. Royalty revenue surged 65% to $205.6 million, driven by increased sales of ENHANZE-enabled therapies including subcutaneous formulations of oncology and neuromuscular treatments. Adjusted EBITDA climbed 64.6% to $225.5 million, while net income rose 77.3% to $165.2 million. Capital allocation included a $303 million share repurchase program executed in the quarter, underscoring management’s confidence in the cash-flow model. Short interest in Halozyme has fallen by 5.58% since the prior reporting period, with 9.60 million shares currently sold short—equating to 10.67% of the float. At recent trading volumes, it would take short sellers approximately 6.16 days to cover their positions. By comparison, the peer-group average short interest stands at 9.72% of float, indicating that investor bearishness toward Halozyme remains elevated but easing. This trend suggests a modest shift toward more bullish sentiment as the company delivers on its royalty growth strategy. Following the strong first half, management raised its 2025 guidance across all key metrics. Total revenue is now expected in a range of $1.275–1.355 billion (previously $1.200–1.280 billion), while royalty revenue forecast was lifted to $825–860 million. Adjusted EBITDA guidance increased to $865–915 million and non-GAAP diluted EPS is projected at $6.00–6.40. These revised targets imply full-year growth rates in the high double digits, driven by ongoing launches of ENHANZE-powered therapies and a growing milestone schedule tied to partner regulatory approvals.