Halozyme Therapeutics, Inc. (HALO) Business Profile

What it does

Halozyme Therapeutics is a biopharmaceutical company that helps other drugmakers deliver medicines by injection under the skin. Founded in 1998 and based in San Diego, it is led by President and Chief Executive Officer Helen I. Torley.

Its principal technology, ENHANZE, uses Halozyme’s enzyme rHuPH20 to temporarily break down a substance in the tissue beneath the skin. That makes it easier for injected fluid to move through the tissue. Drugmakers can combine the enzyme with their own medicines to develop products for subcutaneous, or under-the-skin, delivery. In some cases, this offers an alternative to an intravenous infusion and can shorten administration time.

Halozyme licenses ENHANZE to pharmaceutical and biotechnology partners that develop and market the resulting medicines. Its partners include Roche, Janssen, Takeda, Bristol Myers Squibb and argenx. The company also develops and supplies auto-injectors and drug-device combinations for partners and for its own products.

Its proprietary products include Hylenex, which uses rHuPH20 to help disperse injected drugs and fluids, and XYOSTED, an auto-injector product for testosterone replacement. Halozyme is also developing Hypercon and Surf Bio technologies to concentrate drugs and reduce the volume needed for an injection. Halozyme has since renamed Surf Bio’s technology AeroCon.

How it makes money

Halozyme earns revenue by licensing drug-delivery technology, supplying its enzyme and products, and selling its own medicines. ENHANZE agreements can provide an upfront license fee, payments when a partner reaches development or sales milestones, revenue from bulk rHuPH20 sales, and royalties on sales of approved medicines that use the technology. Milestone payments depend on specified events; royalties depend on partner product sales.

At the end of 2025, Halozyme earned royalties from ten commercial ENHANZE products: five from the Roche collaboration, two from Janssen and one each from Takeda, argenx and Bristol Myers Squibb. Products include Janssen’s DARZALEX FASPRO and argenx’s VYVGART Hytrulo. Halozyme also markets Hylenex and XYOSTED and develops and supplies auto-injector products with partners such as Teva and Viatris.

Hypercon agreements also provide for upfront fees, milestone payments and royalties on approved products. Halozyme says it does not expect active pharmaceutical ingredient revenue from Hypercon, unlike its ENHANZE enzyme supply model. The company says it expects some collaboration revenue as partners pay for experimental work, alongside potential milestone payments. Halozyme has said that certain deals have royalty rates ranging from low to mid single digits, with a modest reduction if there are no valid patents.

In Q3 2026, total revenue was $493 million, including $341 million in royalty revenue. DARZALEX royalty revenue was $153.5 million, and VYVGART royalties were $88.1 million.

Customers and how it sells

Halozyme’s technology customers are pharmaceutical and biotechnology companies that want to develop or market injected medicines. Its ENHANZE collaborators include Roche, Takeda, Pfizer, Janssen, AbbVie, Lilly, Bristol Myers Squibb and argenx. Halozyme also has auto-injector relationships with Teva and Viatris. Partners develop and commercialize their own medicines, while Halozyme supplies technology or devices and receives payments under the agreements.

The royalty portfolio includes products sold by several partners, with DARZALEX contributing $153.5 million and VYVGART $88.1 million in royalties to Halozyme in Q3 2026. Halozyme also sells proprietary products, including Hylenex and XYOSTED; XYOSTED is approved and marketed in the United States for at-home administration.

Partner products have approvals and sales across the United States and other markets. For example, DARZALEX products using ENHANZE have received approvals in the United States, European Union, Japan and China. Roche’s Phesgo has also received approvals in the United States, Europe, China and Japan. Halozyme intends to continue seeking foreign approvals through its partners, with the applicable regulatory process varying by country.

Suppliers and costs

Halozyme develops, manufactures and commercializes drug-device combination products itself or with partners, and sells bulk rHuPH20 for ENHANZE collaborations. It supports partners with device development and supply as well as technical and regulatory work. Halozyme also relies on contract manufacturers and raw-material suppliers whose processes and facilities can be subject to regulatory review.

For Hypercon, Halozyme says it is working to find additional partners for commercial supply. It expects to complete clinical supply for two partner products in the first quarter of 2027, supporting planned initial clinical studies in the first half of 2027.

Research and development expenses were $27.8 million in Q3 2026, compared with $17.3 million in the prior-year period, as the company invested in ENHANZE and other technology platforms. Selling, general and administrative expenses were $58.2 million in the quarter, compared with $46.1 million in the prior-year period. Halozyme attributed that increase primarily to consulting fees, including litigation costs related to Merck.

Competitive position

Halozyme competes in a pharmaceutical industry where companies and research institutions develop treatments for the same indications as its products or product candidates. Some competitors have greater financial resources, development experience, sales capabilities or manufacturing resources. Partners’ medicines can also face other therapies, including generic or biosimilar products.

Merck has developed a subcutaneous Keytruda product that is the subject of patent disputes with Halozyme. In October 2026, a Dutch court found that the product infringed a Halozyme patent and restricted Merck’s activities in several European markets. Halozyme also says it received adverse initial validity decisions on multiple U.S. patent reviews and expects to pursue an appeal. The European and U.S. disputes concern different patents.

Halozyme’s ENHANZE enzyme is patented. Its partners have obtained collaboration patents for some marketed products, and patents are pending for others. ENHANZE can also provide shorter administration times than intravenous treatment: for example, DARZALEX FASPRO can be administered over three to five minutes, compared with multi-hour intravenous infusions.

Our reading: The patent portfolio offers a meaningful competitive defense, but its strength varies by jurisdiction, as the European rulings and adverse initial U.S. decisions show. Our reading: Established partner relationships and experience with approved products support Halozyme’s position, while competing delivery approaches and partner development decisions can still limit its reach.

Growth opportunities

Halozyme seeks to grow ENHANZE by adding partners and targets, advancing partner programs through clinical development, and earning royalties as approved products reach more patients or indications. Existing products can also grow as patients switch from intravenous versions to under-the-skin formulations. Halozyme says three ENHANZE partners expanded their collaborations around Q3 2026, adding four targets, and that programs with Pfizer, Incyte and argenx advanced into early clinical development.

The company reported 12 ENHANZE programs in clinical development and expects to reach 13 by the end of 2026, including a planned GSK study. Additional indications are another route: argenx is studying efgartigimod with ENHANZE in several diseases, and Halozyme says argenx plans a U.S. application for immune-mediated necrotizing myositis. Halozyme says argenx estimates that approximately 20,000 patients live with that disease in the United States.

Hypercon and AeroCon are intended to expand the company’s delivery portfolio by concentrating medicines and reducing injection volumes. Halozyme says five Hypercon collaboration and licensing agreements have been signed, with the potential to cover more than 20 targets or drugs. It expects initial Hypercon clinical studies in the first half of 2027 and AeroCon clinical entry in the second half of 2028.

For full-year 2026, Halozyme expects total revenue of $1.86 billion to $1.925 billion and royalty revenue of $1.235 billion to $1.255 billion.

Structural risks

• Regulatory and clinical development: Partnered or proprietary candidates may fail to obtain or maintain approvals, face delays, or receive narrow labels. Trials may uncover safety issues or results that regulators do not consider sufficient for approval.
• Partner commercialization: Acceptance of approved products depends on factors including partners’ sales and marketing efforts, reimbursement, prices relative to other therapies, and competition from generics or biosimilars. Partners may also stop developing targets that do not meet their clinical expectations.
• Patents and litigation: Halozyme says it has received adverse initial validity decisions on multiple U.S. patent reviews involving Merck. It expects an appeal process, while European proceedings concern a different patent portfolio.
• Manufacturing and supply: Regulators may not approve processes or facilities used by Halozyme, its partners, contract manufacturers or raw-material suppliers. Deficiencies at existing facilities may also affect products or manufacturing processes.
• Debt and acquisitions: Debt can require cash for service payments and limit financial flexibility. Acquired technologies may be difficult to integrate or may not generate enough value to justify their costs.

Bottom line

Our reading

Our reading: Halozyme is a drug-delivery licensing business whose recurring royalties depend on partners selling medicines that use its technology, supplemented by enzyme, device and proprietary product sales. [item1] Its established collaborations and expanding pipeline provide several paths to revenue, but partner decisions, regulatory outcomes and patent disputes can affect how much of that opportunity becomes lasting royalties. [item1a, call_prepared, call_qa]