Halozyme Therapeutics, Inc. (HALO) Bundle
A Brief History of Halozyme Therapeutics, Inc.
Halozyme Therapeutics, Inc. (NASDAQ: HALO) is a biotechnology company that focuses on developing and commercializing innovative therapies for various medical conditions. As of 2024, Halozyme has established a strong presence in the biopharmaceutical sector, primarily through its proprietary ENHANZE® drug delivery technology.
Company Overview
Founded in 1998, Halozyme has evolved significantly over the years. The company went public in 2004 and has since expanded its portfolio through strategic partnerships and acquisitions. Its core technology, ENHANZE, allows for the subcutaneous delivery of biologics, significantly improving patient convenience and compliance.
Financial Performance
For the nine months ended September 30, 2024, Halozyme reported total revenues of $717.3 million, a significant increase from $599.2 million for the same period in 2023. The breakdown of revenues is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Increase/Decrease |
|---|---|---|---|
| Royalties | $400,572 | $325,813 | $74,759 (23%) |
| Product Sales, Net | $224,128 | $221,252 | $2,876 (1%) |
| Revenues Under Collaborative Agreements | $92,616 | $52,149 | $40,467 (78%) |
| Total Revenues | $717,316 | $599,214 | $118,102 (20%) |
Stock Performance
As of September 30, 2024, Halozyme's stock was trading at approximately $39.31 per share. The company has been active in stock repurchases, completing a $750 million buyback program in June 2024 and authorizing another program of the same amount in February 2024. Over the three-year period, 19.1 million shares were repurchased at an average price per share of $39.31.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $341.3 million, compared to $362.7 million in 2023. The breakdown is as follows:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Increase/Decrease |
|---|---|---|---|
| Cost of Sales | $117,362 | $140,063 | ($22,701) (-16%) |
| Amortization of Intangibles | $53,287 | $56,011 | ($2,724) (-5%) |
| Research and Development | $58,607 | $55,027 | $3,580 (7%) |
| Selling, General and Administrative | $112,086 | $111,574 | $512 (0%) |
Cash Flow and Liquidity
As of September 30, 2024, Halozyme reported cash, cash equivalents, and marketable securities totaling $666.3 million. The net cash provided by operating activities for the nine months was $300.6 million, compared to $286.2 million in 2023.
Capital Structure
Halozyme's total liabilities as of September 30, 2024, were approximately $1.67 billion, with total stockholders' equity amounting to $452.7 million. The company has a strong capital structure, supported by ongoing revenues and strategic financing initiatives.
Recent Developments
In recent months, Halozyme has focused on expanding its collaborative agreements, resulting in a substantial increase in revenues from licensing and milestone payments. The company remains committed to enhancing its proprietary technology and exploring new therapeutic areas.
A Who Owns Halozyme Therapeutics, Inc. (HALO)
Major Shareholders
As of 2024, the ownership structure of Halozyme Therapeutics, Inc. (HALO) includes a mix of institutional investors, mutual funds, and individual stakeholders. The largest shareholders are as follows:
| Shareholder Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 12.5% | 15,904,000 |
| The Vanguard Group, Inc. | 10.2% | 13,200,000 |
| Wellington Management Company, LLP | 8.3% | 10,500,000 |
| State Street Corporation | 5.9% | 7,600,000 |
| Geode Capital Management, LLC | 4.5% | 5,600,000 |
Insider Ownership
Insider ownership is also a significant factor in Halozyme’s ownership structure. Key insiders hold a combined total of approximately 3.5% of the company:
| Name | Position | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Helen Torley | President & CEO | 1.0% | 1,000,000 |
| Mark A. Hargreaves | CFO | 0.8% | 800,000 |
| Other Executives | Various | 1.7% | 1,700,000 |
Institutional Ownership
Institutional investors hold a substantial portion of Halozyme's shares, indicating confidence in the company's growth potential. The following table summarizes institutional ownership:
| Institution | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock Fund Advisors | 8.9% | 11,700,000 |
| Invesco Ltd. | 4.0% | 5,200,000 |
| J.P. Morgan Asset Management | 3.1% | 4,000,000 |
| Goldman Sachs Group, Inc. | 2.5% | 3,200,000 |
| Franklin Templeton Investments | 2.0% | 2,600,000 |
Stock Performance
As of September 30, 2024, Halozyme's stock performance reflects its market valuation:
| Metric | Value |
|---|---|
| Current Stock Price | $117.00 |
| Market Capitalization | $16.25 billion |
| 52-Week High | $125.00 |
| 52-Week Low | $90.00 |
| Volume (Average) | 1.2 million shares |
Recent Developments
The company has seen a significant increase in its stock due to positive quarterly earnings and collaborations with major biopharmaceutical companies. The latest earnings report for the third quarter of 2024 highlighted:
- Total revenues: $290.1 million
- Net income: $137.0 million
- Earnings per share: $1.08
Halozyme Therapeutics, Inc. continues to leverage its proprietary technologies and collaborative agreements to enhance its market position and shareholder value.
Halozyme Therapeutics, Inc. (HALO) Mission Statement
Halozyme Therapeutics, Inc. is committed to advancing disruptive solutions that improve patient experiences and outcomes for both emerging and established therapies. The company focuses on innovating drug delivery technologies that streamline the administration of therapeutics, particularly through the use of its proprietary enzyme, rHuPH20, which facilitates subcutaneous (SC) delivery of injected drugs.
Company Overview
Halozyme is recognized for its ENHANZE® drug delivery technology, which enhances the delivery of injectable biologics by reducing the barriers to fluid flow in the subcutaneous space. This approach not only improves the patient experience by allowing for rapid SC delivery but also aims to minimize treatment burdens associated with traditional intravenous (IV) administration methods.
Financial Performance
As of September 30, 2024, Halozyme reported significant financial metrics reflecting its operational success:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Total Revenues | $290,084 | $216,033 | 34.3% |
| Net Income | $137,011 | $81,837 | 67.6% |
| Earnings per Share (Diluted) | $1.05 | $0.61 | 72.1% |
| Royalties | $155,061 | $114,433 | 35.5% |
| Product Sales, Net | $86,659 | $86,569 | 0.1% |
| Research and Development Expenses | $18,458 | $17,321 | 6.6% |
| Selling, General and Administrative Expenses | $41,241 | $35,269 | 16.9% |
Collaborative Agreements
Halozyme's strategy includes forming collaborations with biopharmaceutical companies to develop products that leverage its ENHANZE technology:
| Type of Revenue | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Upfront License Fees | $27,000 | $0 | 100% |
| Event-based Milestones | $18,000 | $13,000 | 38.5% |
| Total Revenues Under Collaborative Agreements | $48,364 | $15,031 | 222.2% |
Liquidity Position
As of September 30, 2024, Halozyme's liquidity position is robust, supported by cash, cash equivalents, and marketable securities totaling:
| Liquidity Metric | Q3 2024 (in thousands) | Q4 2023 (in thousands) |
|---|---|---|
| Cash and Cash Equivalents | $154,318 | $118,370 |
| Marketable Securities | $511,988 | $217,630 |
| Total Liquidity | $666,306 | $335,999 |
Future Outlook
Halozyme aims to continue expanding its market presence through innovative product development and strategic partnerships. As the demand for efficient drug delivery solutions grows, Halozyme is positioned to capitalize on its advanced technology to enhance patient care and operational efficiencies.
The company’s ongoing investments in research and development and its ability to form lucrative collaborations with global pharmaceutical leaders underscore its commitment to improving therapeutic delivery systems.
How Halozyme Therapeutics, Inc. (HALO) Works
Business Model
Halozyme Therapeutics, Inc. operates as a biopharmaceutical company, focusing on drug delivery technology through its proprietary enzyme, rHuPH20. This enzyme facilitates the subcutaneous delivery of drugs and fluids, enhancing patient experiences by reducing treatment burdens. Halozyme licenses its ENHANZE® technology to biopharmaceutical companies, allowing them to develop products that combine ENHANZE with their proprietary compounds.
Financial Performance
As of September 30, 2024, Halozyme reported total revenues of $290.1 million for the three months ended September 30, 2024, a significant increase from $216.0 million for the same period in 2023. For the nine months ended September 30, 2024, total revenues reached $717.3 million, compared to $599.2 million for the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $290.1 million | $216.0 million | $717.3 million | $599.2 million |
| Net Income | $137.0 million | $81.8 million | $307.1 million | $196.2 million |
| Earnings per Share (Basic) | $1.08 | $0.62 | $2.42 | $1.48 |
| Earnings per Share (Diluted) | $1.05 | $0.61 | $2.37 | $1.45 |
Revenue Breakdown
The revenue composition for Halozyme includes royalties, product sales, and collaborative agreements. For the three months ended September 30, 2024, royalties accounted for $155.1 million, while product sales, net, were $86.7 million. Revenues under collaborative agreements totaled $48.4 million.
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Royalties | $155.1 million | $114.4 million |
| Product Sales, Net | $86.7 million | $86.6 million |
| Collaborative Agreements | $48.4 million | $15.0 million |
Operating Expenses
Operating expenses for Halozyme for the three months ended September 30, 2024, were reported at $126.9 million, slightly down from $127.8 million in Q3 2023. The breakdown of the operating expenses includes cost of sales, amortization of intangibles, research and development, and selling, general, and administrative expenses.
| Operating Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Sales | $49.4 million | $54.8 million |
| Amortization of Intangibles | $17.8 million | $20.3 million |
| Research and Development | $18.5 million | $17.3 million |
| Selling, General & Administrative | $41.2 million | $35.3 million |
Cash Flow and Liquidity
As of September 30, 2024, Halozyme reported cash, cash equivalents, and marketable securities totaling $666.3 million. Net cash provided by operating activities for the nine months ended September 30, 2024, was $300.6 million, compared to $286.2 million for the same period in 2023.
| Cash Flow Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $300.6 million | $286.2 million |
| Net Cash Used in Investing Activities | ($292.2 million) | ($88.6 million) |
| Net Cash Provided by (Used in) Financing Activities | $27.6 million | ($158.1 million) |
Partnerships and Collaborations
Halozyme has formed significant collaborations with various biopharmaceutical companies. These partnerships leverage the ENHANZE technology to develop and commercialize new therapies. Recent collaborations include substantial upfront license fees and milestone payments based on the development progress of partnered products.
| Partnership Type | Revenue Contribution (9M 2024) |
|---|---|
| Upfront License Fees | $27.0 million |
| Event-Based Milestones | $57.5 million |
How Halozyme Therapeutics, Inc. (HALO) Makes Money
Revenue Streams
Halozyme Therapeutics generates revenue through three primary avenues: royalties, product sales, and collaborative agreements. As of September 30, 2024, the company reported total revenues of $290,084,000 for the third quarter, which represents a significant increase compared to $216,033,000 for the same period in 2023.
| Revenue Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Royalties | $155,061 | $114,433 | $40,628 | 35.5% |
| Product Sales, Net | $86,659 | $86,569 | $90 | 0.1% |
| Collaborative Agreements | $48,364 | $15,031 | $33,333 | 222.0% |
| Total Revenues | $290,084 | $216,033 | $74,051 | 34.3% |
Royalties
The royalty revenue primarily stems from the company's ENHANZE technology collaborations. Halozyme receives royalties on the sales of products developed by its partners using this technology. In the nine months ended September 30, 2024, royalties amounted to $400,572,000, reflecting a year-over-year increase of 23% from $325,813,000 in 2023.
Product Sales
Product sales consist of proprietary product sales, bulk rHuPH20 sales, and device partnered product sales. For the nine months ended September 30, 2024, total product sales reached $224,128,000, slightly increasing from $221,252,000 in 2023. Within this category:
- Proprietary product sales were $119,319,000, up from $91,765,000 (30% increase).
- Bulk rHuPH20 sales were $66,637,000, down from $86,203,000 (23% decrease).
- Device partnered product sales were $38,172,000, down from $43,284,000 (12% decrease).
Collaborative Agreements
Halozyme's collaborative agreements include upfront licensing fees, milestone payments, and royalties from partnered products. The company reported $92,616,000 in revenues from collaborative agreements for the nine months ended September 30, 2024, a substantial increase from $52,149,000 in 2023. Notable contributions include:
- Upfront license and target nomination fees of $27,000,000, a new revenue stream not reported in the previous year.
- Event-based development and regulatory milestone fees of $57,500,000, up from $46,000,000 (25% increase).
Operating Expenses
Operating expenses for Halozyme include cost of sales, research and development, and selling, general and administrative costs. For the nine months ended September 30, 2024, total operating expenses were $341,342,000, down from $362,675,000 in 2023.
| Operating Expense Category | 9M 2024 (in thousands) | 9M 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Sales | $117,362 | $140,063 | $(22,701) | (16.2%) |
| Research and Development | $58,607 | $55,027 | $3,580 | 6.5% |
| Selling, General and Administrative | $112,086 | $111,574 | $512 | 0.5% |
| Total Operating Expenses | $341,342 | $362,675 | $(21,333) | (5.9%) |
Net Income
Net income for Halozyme in the nine months ended September 30, 2024, was $307,079,000, compared to $196,206,000 for the same period in 2023, indicating a year-over-year increase of 56.7%. This growth was driven by higher revenues, particularly from royalties and collaborative agreements.
Cash and Liquidity
As of September 30, 2024, Halozyme reported cash, cash equivalents, and marketable securities totaling $666,300,000. The company's liquidity position is expected to fund operations for at least the next twelve months.
Key Partnerships
Halozyme collaborates with several major pharmaceutical companies, including:
- F. Hoffmann-La Roche Ltd.
- Janssen Biotech, Inc.
- Pfizer Inc.
- Takeda Pharmaceuticals International AG.
These partnerships play a critical role in the company's revenue generation through royalties and collaborative development agreements.
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Article updated on 8 Nov 2024
Resources:
- Halozyme Therapeutics, Inc. (HALO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Halozyme Therapeutics, Inc. (HALO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Halozyme Therapeutics, Inc. (HALO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.