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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary reflects strong financial guidance, optimistic product development projections, and a strategic shareholder return plan. Despite some uncertainties in the Q&A, such as unclear patient growth sources for OCREVUS and lack of updates on certain products, the overall sentiment remains positive due to increased guidance, strong royalty contributions, and potential new partnerships. The stock is likely to experience a positive movement, with the potential for further upside if new deals materialize.
Royalty Revenue $236 million, representing a 52% increase year-over-year. This growth was driven by the continued momentum of three established blockbuster subcutaneous therapies: DARZALEX subcutaneous, Phesgo, and VYVGART Hytrulo.
Total Revenue $354 million, representing 22% growth year-over-year. This was driven by the strong performance of the ENHANZE drug delivery technology and the three blockbuster therapies.
Adjusted EBITDA $248 million, reflecting a 35% increase year-over-year. This growth showcases the leverage of the high-margin royalty-driven model.
DARZALEX Sales $3.7 billion, a 20% increase year-over-year. Growth was driven by strong share gains across all lines of therapy and market growth.
Phesgo Revenue CHF 1.8 billion (~$2.3 billion), reflecting a 54% year-over-year increase. Growth was driven by increasing conversion from intravenous Perjeta and Herceptin to Phesgo.
VYVGART Sales $1.13 billion, a 96% year-over-year increase. Growth was driven by the subcutaneous formulation enabled by ENHANZE, which expanded access to new prescribers and patients.
OCREVUS Revenue CHF 5.2 billion (~$6.5 billion) for the first 9 months of 2025, up 7% year-over-year. Growth was driven by the subcutaneous formulation, which offers a rapid 10-minute injection and expands access to underserved patient populations.
Tecentriq Revenue CHF 2.6 billion (~$3.3 billion) for the first 9 months of 2025. Growth was driven by the subcutaneous formulation, which offers a more convenient 7-minute injection.
OPDIVO Sales $2.5 billion in Q3 2025, reflecting a 6% year-over-year increase. Growth was driven by the U.S. launch of OPDIVO Qvantig with ENHANZE, which offers a 3- to 5-minute subcutaneous administration.
RYBREVANT Revenue $198 million in Q3 2025, reflecting triple-digit year-over-year growth. Growth was driven by the subcutaneous formulation with ENHANZE, which simplifies treatment and enhances patient convenience.
Cash, Cash Equivalents, and Marketable Securities $702 million as of September 30, 2025, compared to $596.1 million on December 31, 2024. The increase was driven by cash generated from operations, offset by share repurchases.
ENHANZE drug delivery technology: Continued to drive significant momentum in the business, enabling subcutaneous delivery of therapies that were previously administered intravenously. This technology allows treatments to be administered in minutes, improving patient convenience and reducing healthcare system burdens.
DARZALEX subcutaneous: Received European Commission approval for a new indication in smoldering multiple myeloma, expanding its reach to early-stage patients and potentially increasing treatment duration. Achieved 96% share of sales in the U.S. and over 90% globally for subcutaneous formulations, with projections to remain the gold standard for multiple myeloma treatment.
VYVDURA pre-filled syringe with ENHANZE: Approved in Japan for self-injection for generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy, enabling at-home administration and simplifying treatment.
Elektrofi acquisition: Acquired to expand the portfolio of drug delivery technologies, enabling higher concentration formulations for subcutaneous delivery, furthering the vision for at-home biologic therapies. Strategically acquired to enhance drug delivery capabilities, enabling higher concentration formulations and expanding the potential for at-home biologic therapies.
Phesgo: Continued to be Roche's #1 growth driver, with increasing conversion from intravenous formulations and projected peak conversion of 60%.
VYVGART Hytrulo: Expanded access to new prescribers and patients, with projections for the total addressable market to grow significantly in generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy.
Financial performance: Reported record royalty revenue of $236 million, a 52% year-over-year increase, and total revenue of $354 million, a 22% growth year-over-year.
Guidance update: Raised full-year 2025 revenue guidance to $1.3 billion-$1.375 billion, reflecting 28%-35% growth, with royalty revenue expected to grow 49%-54%.
Cash flow and balance sheet: Generated robust cash flow, repurchased $342 million in shares year-to-date, and maintained a strong balance sheet with $702 million in cash and equivalents.
Pipeline development: Progressed 8 programs in clinical development, with 2 additional programs anticipated, representing potential new royalty growth opportunities.
Regulatory Approvals and Market Expansion: The company is heavily reliant on regulatory approvals and market expansion for its growth catalysts. Delays or failures in obtaining approvals for new indications or products could adversely impact revenue projections and strategic objectives.
Supply Chain and Manufacturing: The acquisition of Elektrofi and the integration of its Hypercon technology could pose operational challenges. Any disruptions in the supply chain or manufacturing processes could delay product launches and impact financial performance.
Competitive Pressures: The company faces intense competition in the pharmaceutical and biotechnology sectors. Competitors' advancements or new product launches could erode market share and impact revenue.
Economic and Market Conditions: Economic uncertainties and market conditions could affect the adoption of the company's products, particularly in regions with limited healthcare infrastructure.
Strategic Execution Risks: The company's ambitious growth plans, including the integration of new technologies and expansion into new markets, carry execution risks. Failure to effectively manage these initiatives could impact long-term growth.
Dependence on Key Products: A significant portion of the company's revenue is derived from a few key products like DARZALEX, Phesgo, and VYVGART. Any decline in the performance of these products could materially affect financial results.
Financial Leverage: The acquisition of Elektrofi is expected to increase the company's net leverage to approximately 2x net debt-to-EBITDA. This could limit financial flexibility and increase vulnerability to economic downturns.
Revenue Projections: Halozyme has raised its full-year 2025 revenue guidance to $1.3 billion to $1.375 billion, reflecting 28% to 35% growth over 2024. Royalty revenue is expected to grow 49% to 54%, reaching $850 million to $880 million.
Adjusted EBITDA: The company anticipates adjusted EBITDA of $885 million to $935 million, representing year-over-year growth of 40% to 48%.
Non-GAAP Diluted EPS: Non-GAAP diluted earnings per share are projected to be $6.10 to $6.50, reflecting year-over-year growth of 44% to 54%.
Product Launches and Approvals: Halozyme expects two additional U.S. approvals in 2025: DARZALEX subcutaneous for smoldering multiple myeloma and RYBREVANT subcutaneous for EGFR-mutated non-small cell lung cancer.
Long-Term Revenue Streams: The company anticipates sustained royalty contributions from all products through at least 2030, with several extending into the 2040s.
Elektrofi Acquisition: The acquisition of Elektrofi is expected to enable at-home administration of biologic therapies and expand the portfolio of drug delivery technologies. The transaction is projected to be less than 5% dilutive to non-GAAP diluted EPS over the medium term, with potential milestone payments offsetting dilution before projected royalty revenues in 2030 and beyond.
Pipeline Development: Eight programs are in various stages of clinical development, with two additional programs anticipated. Advanced opportunities include Bristol-Myers Squibb's subcutaneous nivolumab with relatlimab and Takeda's TAK-881, both in Phase III development.
Market Expansion: The company projects significant growth opportunities for its blockbuster products, including DARZALEX, Phesgo, and VYVGART, which represent a $30 billion total addressable market opportunity by 2028. Newer launches also represent an additional $30 billion opportunity by 2028.
Share Repurchase: Year-to-date, Halozyme repurchased $342 million of shares with $158 million remaining under the current authorized plan. Since 2019, the company has returned approximately $1.9 billion to shareholders through repurchases, representing greater than 100% of cumulative free cash flow over that period.
The earnings call summary reflects strong financial guidance, optimistic product development projections, and a strategic shareholder return plan. Despite some uncertainties in the Q&A, such as unclear patient growth sources for OCREVUS and lack of updates on certain products, the overall sentiment remains positive due to increased guidance, strong royalty contributions, and potential new partnerships. The stock is likely to experience a positive movement, with the potential for further upside if new deals materialize.
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