Halozyme Therapeutics, Inc. HALO reported third-quarter 2024 adjusted earnings of $1.27 per share, which comprehensively beat the Zacks Consensus Estimate of 99 cents. The company had recorded adjusted earnings of 75 cents per share in the year-ago period.
Total revenues in the third quarter increased 34% year over year to $290 million. Revenues surpassed the Zacks Consensus Estimate of $248 million.
The top line was primarily driven by higher royalty payments from Roche RHHBY for Phesgo and J&J JNJ for subcutaneous Darzalex (daratumumab) as well as an increase in milestone revenues during the quarter.
Based on the strong performance so far this year, Halozyme raised its 2024 financial guidance.
Shares of Halozyme were up 14.7% in after-hours trading on Oct. 31 owing to the better-than-expected results and the increase in guidance.
The stock has rallied 36.8% in the year-to-date period against the industry’s decline of 3.6%.
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More on HALO's Q3 Earnings
Halozyme’s top line comprises product sales, royalties and revenues under collaborative agreements.
Royalty revenues totaled $155.1 million in the third quarter, up 36% from the year-ago quarter’s level. This was mainly due to the robust demand for Phesgo and subcutaneous Darzalex. Royalty revenues beat our model estimate of $134.5 million.
Several companies use HALO’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. Halozyme now has eight marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s Darzalex and Roche’s Phesgo.
Product sales were $86.7 million, almost in line with the year-ago quarter figure. HALO has two commercial proprietary products, Hylenex and Xyosted, with the latter acquired from Antares Pharma in 2022. Product sales beat our model estimate of $76.7 million.
Revenues under collaborative agreements were $48.4 million in the third quarter, significantly up from $15 million reported in the year-ago quarter.
Adjusted EBITDA was $184 million in the third quarter, reflecting a 60% increase from the prior-year quarter.
Halozyme had cash, cash equivalents and marketable securities of $666.3 million as of Sept. 30, 2024, compared with $529 million as of June 30, 2024.
2024 Guidance
Halozyme now expects total revenues in the range of $970 million to $1.02 billion in 2024, implying year-over-year growth of 13% to 22%. Revenues were earlier projected in the range of $935 million to $1.015 billion.
Total revenues are expected to grow based primarily on increases in royalty revenues, collaboration revenues and growth in product sales from Xyosted.
Royalty revenues are now anticipated in the range of $550-$565 million compared with the earlier projection of $520-$555 million.
Halozyme expects collaboration revenues to contribute $130-$150 million, while product sales are likely to be in the band of $290-$305 million for 2024.
Adjusted EBITDA is now expected to be between $595 million and $625 million in 2024, implying growth of 40% to 47% year over year. Adjusted EBITDA was earlier expected to be between $555 million and $615 million.
The company expects adjusted earnings in the range of $4.00-$4.20 per share, indicating an improvement of 44% to 52% year over year. Adjusted earnings were earlier projected in the band of $3.65-$4.05 per share. HALO’s earnings per share guidance does not consider the impact of potential future share repurchases.
Halozyme Therapeutics, Inc. Price, Consensus and EPS Surprise
Halozyme Therapeutics, Inc. price-consensus-eps-surprise-chart | Halozyme Therapeutics, Inc. Quote
HALO's Zacks Rank
Halozyme currently carries a Zacks Rank #3 (Hold).
A Key Pick in the Biotech Sector
A top-ranked stock in this space is Amicus Therapeutics, Inc. FOLD, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Amicus’ 2024 earnings per share have moved up from 21 cents to 22 cents. Earnings per share estimates for 2025 have improved from 50 cents to 53 cents during the same time. Year to date, shares of FOLD have declined 19.5%.
FOLD’s earnings beat estimates in three of the trailing four quarters while missing on the remaining occasion, the average surprise being 23.96%.
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