Halozyme Therapeutics [HALO]
2026-07-29. Every figure below is traceable to a named primary filing. [HOUSE] marks a house estimate; [GUIDANCE] marks management guidance. Nothing else is asserted.
| Item | Source document | Accession | Filed |
|---|---|---|---|
| FY2025 / FY2024 / FY2023 income statement | 10-K, R5.htm |
0001159036-26-000024 | 2026-02-17 |
| Revenue disaggregation FY2023–FY2025 | 10-K, R54.htm |
same | same |
| Customer and geographic concentration | 10-K, R40.htm |
same | same |
| Revenue narrative, remaining performance obligations | 10-K, R55.htm |
same | same |
| Royalty revenue by product FY2024/FY2025 | 10-K MD&A | same | same |
| Royalty term and patent expiry language | 10-K, revenue-recognition policy and IP section | same | same |
| Merck litigation, German injunction, USPTO PGRs | 10-K, legal and risk sections | same | same |
| Q1-2026 income statement, balance sheet | 10-Q, R4.htm, R2.htm |
0001159036-26-000068 | 2026-05-11 |
| Q1-2026 revenue disaggregation | 10-Q, R46.htm, R47.htm |
same | same |
| Business combinations (Elektrofi, Surf Bio) | 10-Q, R38.htm; 10-K R46.htm |
both | both |
| Debt terms | 10-Q, R59.htm; 10-K R67.htm |
both | both |
| Share count | 10-Q cover, R1.htm |
0001159036-26-000068 | 2026-05-11 |
| FY2025 adjusted-EBITDA reconciliation | 8-K Ex-99.1 | 0001159036-26-000023 | 2026-02-17 |
| FY2026 guidance | 8-K Ex-99.1 | 0001159036-26-000023 | 2026-02-17 |
| FY2026 guidance reiteration; $1bn buyback | 8-K Ex-99.1 | 0001159036-26-000067 | 2026-05-11 |
| Cash flow, SBC | XBRL companyfacts, us-gaap taxonomy |
— | max filed 2026-05-11 |
| Prices, volume, volatility | Alpaca /v2/stocks/bars, adjustment=all |
— | 2026-07-29 |
| Options chain | Alpaca /v2/options/contracts + /v1beta1/options/snapshots |
— | 2026-07-29 |
Lineage note. HALO's XBRL companyfacts is current (max filed 2026-05-11) — it contains the Q1-2026
10-Q. This contrasts with ALNY, whose feed stops at 2026-04-06. Both were checked; the difference is issuer
level, which is what makes staleness dangerous to assume away.
Taxonomy warning encountered and respected. The peer-multiples tool reported for HALO: "stale taxonomies
present and MUST NOT be read: srt ends 2021-12-31. Fresh: dei, us-gaap." All figures here are read from
us-gaap and dei only.
| FY | Royalties | Product sales, net | Collaborative agreements | Total | Total YoY |
|---|---|---|---|---|---|
| 2021 | — | — | — | 443.3 | |
| 2022 | 360.5 | (Antares acquired May-2022) | 660.1 | +48.9% | |
| 2023 | 447.9 | 300.9 | 80.5 | 829.3 | +25.6% |
| 2024 | 571.0 | 303.5 | 140.8 | 1,015.3 | +22.4% |
| 2025 | 867.8 | 376.4 | 152.3 | 1,396.6 | +37.6% |
| 2025 mix | 62.1% | 27.0% | 10.9% | 100% |
FY2022's line-level split beyond royalties was not retrieved; only total $660.1m and royalties $360.5m are used. FY2021 total $443.3m is from the FY2022 release.
| $m | FY2023 | FY2024 | FY2025 | Q1-2025 | Q1-2026 | Q1 YoY |
|---|---|---|---|---|---|---|
| Proprietary product sales (Hylenex, XYOSTED) | 130.8 | 166.6 | 194.6 | 36.3 | 41.9 | +15% |
| Bulk rHuPH20 sales | 115.4 | 86.3 | 133.0 | 27.0 | 73.5 | +172% |
| Device partnered product sales | 54.6 | 50.5 | 48.8 | 14.7 | 15.1 | +3% |
| Total product sales, net | 300.9 | 303.5 | 376.4 | 78.0 | 130.4 | +67% |
Modelling note: bulk rHuPH20 is the forward indicator. It is enzyme sold to partners for manufacturing and is ordered ahead of partner production. It nearly tripled year on year in Q1-2026 while HALO's own proprietary products grew 15%. The Q1-2026 10-Q discloses $265.8m of remaining performance obligations on unfulfilled product purchase orders, expected to be delivered by end-2027 (FY2025 10-K: $289.5m). This is the single most under-followed number in the name.
| $m | FY2023 | FY2024 | FY2025 | Q1-2025 | Q1-2026 |
|---|---|---|---|---|---|
| Upfront licence and target-nomination fees | 2.0 | 27.0 | 18.5 | 0.2 | 0.0 |
| Event-based development and regulatory milestones | 69.0 | 72.5 | 47.0 | 0.0 | 0.0 |
| Sales-based milestones | 0.0 | 30.0 | 70.0 | 15.0 | 0.0 |
| Sub-total: LUMPY | 71.0 | 129.5 | 135.5 | 15.2 | 0.0 |
| Device licensing and development revenue (recurring) | 9.5 | 11.3 | 16.9 | 3.4 | 5.6 |
| Total collaborative | 80.5 | 140.8 | 152.3 | 18.6 | 5.6 |
| Lumpy as % of total revenue | 8.6% | 12.8% | 9.7% | 5.7% | 0.0% |
TTM lumpy through 2026-03-31 = $120.3m = 8.0% of TTM revenue. Recurring TTM = $1,508.5m − $120.3m = $1,388.2m, which is the reverse-DCF base.
| Product | Partner | FY2024 | FY2025 | Change | % of FY2025 royalties | % of FY2025 total revenue |
|---|---|---|---|---|---|---|
| DARZALEX | Janssen | 374.8 | 482.7 | +29% | 55.6% | 34.6% |
| VYVGART Hytrulo | argenx | 28.9 | 157.2 | +444% | 18.1% | 11.3% |
| Phesgo | Roche | 70.1 | 105.6 | +51% | 12.2% | 7.6% |
| Other | various | 97.2 | 122.3 | +26% | 14.1% | 8.8% |
| Total | 571.0 | 867.8 | +52% | 100% | 62.1% |
Customer concentration, % of total revenue (10-K; counterparties are lettered, not named):
| FY2023 | FY2024 | FY2025 | |
|---|---|---|---|
| Partner A | 44% | 41% | 41% |
| Partner B | 19% | 17% | 17% |
| Partner C | 7% | 9% | 16% |
| Partner D | 10% | 8% | 6% |
The 10-K separately states Janssen and Roche = 69% of accounts receivable.
Geographic revenue, $m: US 587.2 → 690.5 → 823.0; Switzerland 149.0 → 212.4 → 276.4; Belgium 58.4 → 84.0 → 217.5 (+159%); Japan 15.1 → 18.9 → 46.4; all other foreign 19.6 → 9.5 → 33.3.
| $m | FY2023 | FY2024 | FY2025 | Q1-2025 | Q1-2026 |
|---|---|---|---|---|---|
| Cost of sales | 192.4 | 159.4 | 228.8 | 48.4 | 79.2 |
| Amortisation of intangibles | 73.8 | 71.0 | 76.7 | 17.8 | 29.5 |
| Research and development | 76.4 | 79.0 | 81.5 | 14.8 | 25.6 |
| Selling, general and administrative | 149.2 | 154.3 | 207.1 | 42.4 | 57.9 |
| Impairment of intangible asset | 0.0 | 0.0 | 48.7 | 0.0 | 0.0 |
| Acquired in-process R&D expense | 0.0 | 0.0 | 284.9 | 0.0 | 0.0 |
| Total operating expenses | 491.7 | 463.8 | 927.6 | 123.3 | 192.2 |
| Operating income | 337.6 | 551.5 | 469.0 | 141.5 | 184.5 |
| GAAP operating margin | 40.7% | 54.3% | 33.6% | 53.4% | 49.0% |
| Clean operating margin (ex IPR&D and impairment) | 40.7% | 54.3% | 57.5% | 53.4% | 49.0% |
Total gross margin (revenue less cost of sales) = 83.6% FY2025, 79.0% Q1-2026. The decline is mix: bulk rHuPH20 carries a lower margin than royalties, and it is the fastest-growing line.
The 33.6% figure the screen used as a terminal margin is a one-year artefact. FY2024 was 54.3%, FY2023 was 40.7%, and Q1-2026 is 49.0%. Only FY2025 carries the $284.9m IPR&D and $48.7m impairment. Any model that takes a trailing GAAP margin off FY2025 without restating it will misprice this name.
| $m | FY2025 | FY2024 |
|---|---|---|
| GAAP net income | 316.9 | 444.1 |
| less investment and other income, net | (21.5) | (24.4) |
| plus interest expense | 18.1 | 18.1 |
| plus income tax expense | 150.0 | 113.0 |
| plus depreciation and amortisation | 88.1 | 81.3 |
| EBITDA | 551.6 | 632.2 |
| plus transaction costs for business combinations (Elektrofi) | 14.6 | — |
| plus intellectual-property litigation costs (Merck) | 16.7 | — |
| plus severance and share-based-compensation acceleration (Elektrofi) | 24.6 | — |
| plus impairment of intangible asset | 48.7 | — |
| plus other one-time items | 1.4 | — |
| Adjusted EBITDA (as filed) | 657.6 | 632.2 |
| Acquired IPR&D expense (Surf Bio) — NOT added back | (284.9) | — |
| Adjusted EBITDA, restated for the IPR&D charge [HOUSE] | 942.5 | 632.2 |
| Growth rate | As filed | Restated |
|---|---|---|
| FY2024 → FY2025 adjusted EBITDA | +4.0% | +49.1% |
| FY2025 → FY2026 guidance ($1,125–1,205m) | +71% to +83% | +19.4% to +27.9% |
Modelling instruction: underwrite +19% to +28%. The +71–83% headline in the Q1-2026 release is arithmetic against a base carrying a one-off $284.9m acquisition charge that the company's own adjusted-EBITDA definition — which explicitly excludes impairments, transaction costs, severance and litigation — declines to exclude. The same distortion runs through the non-GAAP diluted EPS growth of +87% to +99%.
Q1-2026 for reference: EBITDA $218.3m; adjusted EBITDA $229.5m (vs $162.0m in Q1-2025, +41.7%); GAAP diluted EPS $1.22; non-GAAP diluted EPS $1.60 (vs $1.11, +44.1%). Note that the clean quarter-on-quarter growth rates (+42%) match revenue growth (+42%), not the +71–83% annual headline.
| $m | 2026-03-31 | 2025-12-31 |
|---|---|---|
| Cash and cash equivalents | 309.7 | 133.8 |
| Marketable securities | 8.9 | 9.0 |
| Restricted cash | 2.3 | 2.6 |
| Total cash and investments | 320.9 | 145.4 |
| Accounts receivable, net and contract assets | 458.0 | 441.3 |
| Inventories (current) | 155.5 | 176.5 |
| Goodwill | 582.3 | 580.4 |
| Intangible assets, net | 952.0 | 981.5 |
| Total assets | 2,672.7 | 2,525.3 |
| Current portion of long-term debt, net | 208.7 | 0.0 |
| Long-term debt, net | 1,935.9 | 2,142.6 |
| Total liabilities | 2,453.1 | 2,476.5 |
| Total stockholders' equity | 219.6 | 48.8 |
| Shares issued and outstanding | 118,523k | 117,782k |
Convertible debt, gross principal $2,179.6m:
| Series | Principal | Coupon | Conversion price | Maturity | Status at $83.62 |
|---|---|---|---|---|---|
| 2027 | $209.6m | 0.25% | $77.17 | 2027-03-01 | in the money; reclassified current |
| 2028 | $470.0m | 1.00% | $56.02 | 2028 | deep in the money |
| 2031 | $750.0m | 0.00% | $87.20 | 2031 | just out of the money |
| 2032 | $750.0m | 0.875% | $87.20 | 2032 | just out of the money |
Capped calls were purchased on the 2031/2032 issues (cap price $136.78, $106.8m and $104.0m paid) and on the 2028 issue (cap $75.4075). A $750m revolving credit facility exists under the Credit Agreement.
Future debt maturities and interest: 2026 $11.8m; 2027 $221.1m; 2028 $481.3m; 2029 $6.6m; 2030 $6.6m; thereafter $1,513.1m.
Scheduled intangible amortisation: 2026 $118.0m; 2027 $118.0m; 2028 $118.0m; 2029 $83.3m; 2030 $60.6m; thereafter $483.4m.
| $m | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
| Operating cash flow | 240.1 | 388.6 | 479.1 | 651.6 |
| Capital expenditure | 4.8 | 15.3 | 10.7 | 7.0 |
| Free cash flow | 235.3 | 373.3 | 468.4 | 644.6 |
| Stock-based compensation | 24.4 | 36.6 | 43.4 | 51.6 |
| SBC as % of revenue | 3.7% | 4.4% | 4.3% | 3.7% |
Accruals check: (316.9 − 651.6) / ((2,525.3 + 2,063.5) / 2) = −14.6%. Cash comfortably exceeds earnings. PASS.
FCF yield: $644.6m / $9,918m market cap = 6.5%; / $12,099m EV = 5.3%.
Capital intensity is negligible — $7.0m of capex on $1,396.6m of revenue (0.5%). This is a royalty business and the model should treat it as one: incremental revenue converts to cash at close to the incremental margin.
Share count is declining. Weighted diluted: 134.2m (FY2023) → 129.4m (FY2024) → 123.9m (FY2025) → 122.9m (Q1-2026). The $1bn authorisation to 2028-12-31, with ≥$400m projected in 2026, continues this.
| Line | Guidance | vs FY2025 actual |
|---|---|---|
| Total revenue | $1,710 – 1,810m | $1,396.6m → +22% to +30% |
| Royalty revenue | $1,130 – 1,170m | $867.8m → +30% to +35% |
| Adjusted EBITDA | $1,125 – 1,205m | $657.6m → +71% to +83% as filed; +19% to +28% restated |
| Non-GAAP diluted EPS | $7.75 – 8.25 | +87% to +99% as filed; distorted the same way |
| Included investment | ~$60m of new Hypercon and Surf Bio spend | |
| Stated expectation | ENHANZE royalty revenue exceeds $1 billion |
Q1-2026 delivered $376.7m, about 21% of the $1,760m midpoint — the ramp is second-half weighted and
untested. That is invalidation condition #4 in HALO_Trade_Construction.md.
No guidance and no consensus exists (Alpha Vantage quota exhausted — see disclosed limitations).
| Line | FY2027 [HOUSE] | Reasoning |
|---|---|---|
| Royalties | $1,300m | +12% on the FY2026 midpoint. DARZALEX indication expansion; VYVGART all-serotype gMG plus ocular MG; RYBREVANT FASPRO full year. Deliberately decelerating from +30–35%, because the US rHuPH20 patent expires in 2027 and the step-down timing is undisclosed |
| Product sales | $600m | Bulk rHuPH20 momentum plus the $265.8m of disclosed unfulfilled purchase orders deliverable through 2027 |
| Collaborative | $100m | Below FY2025's $152.3m. Vertex/Oruka/GSK upfronts and target nominations, no large sales-based milestone assumed |
| Total | ~$2,000m | +14% on the FY2026 midpoint |
| Non-GAAP diluted EPS [HOUSE] | ~$9.75 | Operating leverage on $2.0bn plus ~4% share-count reduction from the funded buyback |
TTM revenue reportable twelve months from now (through Q2-2027) ≈ (1,760 + 2,000) / 2 = $1,880m. This is the denominator of the 12-month target and the single most replaceable input in the model.
The magnitude of the post-2027 rHuPH20 royalty rate reduction is not disclosed anywhere in HALO's filings.
What is disclosed: - Royalties run at "an on average mid-single digit percent rate" of partner sales. - The rate is "reduced" — not terminated — in a country upon expiry of HALO's rHuPH20 patents, where no collaboration-specific patent covers the product. - "Janssen's patents covering DARZALEX SC do not impact the timing for this royalty reduction." - US rHuPH20 expires 2027; European 2029; additional patents valid into 2029. - DARZALEX is 34.6% of FY2025 total revenue; US revenue is 58.9% of total.
What is not disclosed and is not estimated here: the reduced rate, the products it applies to individually, and whether any collaboration-specific patents cover DARZALEX SC in any given country.
Modelling instruction: do not put a number on this. The correct treatment, used in HALO_Valuation.md, is
to discount the exit multiple with the argument stated in the open (15.0x EBIT against a 27.4x
growth-matched anchor) and to identify the flip point (8.0x EBIT) so a book can express its own view. A
specific-looking percentage would be a fabricated number in the highest-leverage position in the model.
Verified: - Revenue components sum to the reported totals: 867.8 + 376.4 + 152.3 = 1,396.6 ✓ (FY2025); 240.7 + 130.4 + 5.6 = 376.7 ✓ (Q1-2026). - Product sub-components sum: 194.6 + 133.0 + 48.8 = 376.4 ✓; 41.9 + 73.5 + 15.1 = 130.4 ✓. - Collaborative sub-components sum: 18.5 + 47.0 + 70.0 + 16.9 = 152.3 ✓ (rounding). - Royalty-by-product sums to the royalty line: 482.7 + 157.2 + 105.6 + 122.3 = 867.8 ✓. - Adjusted-EBITDA reconciliation ties from GAAP net income to $657.6m ✓, and the implied FY2025 base from the guidance growth rate ($1,125m / 1.71 = $658m) independently confirms it ✓. - Operating margin arithmetic: 469.0 / 1,396.6 = 33.58% ✓ (the screen's 33.6%). - Market cap reconciles to the screen: 83.62 × 118.613m = $9.92bn vs screen $9.9bn ✓. - Share count cross-checked: 10-Q cover 118,613k (2026-04-30); balance sheet 118,523k issued and outstanding (2026-03-31); GAAP diluted weighted 122,875k (Q1-2026). - Demonstrated CAGR reproduces the screen: (1,396.6 / 660.1)^(1/3) − 1 = 28.36% vs screen 28.4% ✓.
Known weaknesses, stated: 1. The royalty step-down magnitude is unmodellable (§9). This is not a gap more work would close. 2. FY2022 line-level revenue split was not retrieved. The recurring-versus-lumpy decomposition therefore runs FY2023→FY2025 (two years). The three-year window is used only for total and royalty-only CAGRs, where the components are known. 3. Partner A/B/C/D are not named in the 10-K. The inference that Partner A is Janssen is reasonable from the geographic and product data but is not asserted as fact anywhere in this memo. 4. No consensus. FY2027 is a house estimate. 5. The EV/TTM-sales history uses annual capital-structure snapshots, not daily. HALO's share count fell from 147m to 123m and its net debt rose from $1.1bn to $1.8bn over the window, so this matters more here than for a stable-structure name. The current-day figure (8.02x) is exact. 6. Convertible treatment is conservative (GAAP diluted shares plus full debt at carrying value) and slightly overstates EV if the in-the-money 2027/2028 series convert. 7. No regressed beta. WACC of 10% is the framework default, named as such. 8. Terminal margin of 50% is a judgement, sensitivity-tested from 33.6% to 55% rather than defended.