Helen Torley, Halozyme's President and Chief Executive Officer, who will provide an update on our business, and Nicole LaBrosse, our Chief Financial Officer, will review our financial results as well as our outlook. Certain non-GAAP or adjusted financial measures are reconciled with the comparable GAAP financial measures in our earnings press release and slide presentation. I'm pleased to announce another record quarter, which highlights the significant growth and accelerating momentum we have across the business. Total revenue in the quarter was $326 million, representing a 41% increase over the second quarter of the prior year.
This robust growth was driven by continued strong royalty revenue performance, driven by our three established blockbuster subcutaneous therapies, Darzalex subcutaneous, subcutaneous Phesgo, and Vyvgart Hytrulo. This quarter's royalty revenue grew an impressive 65% year-over-year to $206 million. Adjusted EBITDA increased an outstanding 65% over the prior year's second quarter to $226 million. This was driven by the accelerating growth of our high-margin royalty revenue streams, as a result of increasing demand for products, incorporating our leading drug delivery technology, ENHANZE.
Based on this strong continued performance and the growth trends, I am pleased to announce that we are raising our 2025 financial guidance for the second time this year. We are now projecting total revenue of $1.275 billion-$1.355 billion, representing 26%-33% growth over 2024. This is a further increase to revenue guidance of $75 million, after raising guidance by approximately $50 million in the first quarter reporting. 2025 full-year royalty revenue guidance has increased to $825 million-$860 million, representing growth year-over-year of 44%-51%.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | FY2025 | $1.275B-$1.355B (26%-33% growth) (raised by $75M, second raise this year) |
| Royalty revenue | FY2025 | $825M-$860M (44%-51% growth) (raised) |
| Adjusted EBITDA | FY2025 | $865M-$915M (37%-45% growth) (raised) |
| Non-GAAP diluted EPS | FY2025 | $6.00-$6.40 (42%-51% growth) (raised) |
| Product sales | FY2025 | $340M-$365M (12%-20% growth) (unchanged) |
| Collaboration revenue | FY2025 | $110M-$130M (unchanged) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +41% to $325.7M | Continued commercial success of subcutaneous Darzalex and Phesgo plus robust growth of Vyvgart Hytrulo. |
| Royalty revenue | +65% to $205.6M | Higher-than-expected royalty growth from the three blockbuster subcutaneous therapies using ENHANZE. |
| Product sales | +3% to $81.5M | Mainly driven by higher proprietary product sales. |
| Collaboration revenue | +40% to $38.6M | Milestone recognition of the EU approval and launch of Rybrevant SC in April and a milestone for the EU approval of Opdivo SC. |
| Adjusted EBITDA | +65% to $225.5M | Accelerating growth of high-margin royalty revenue streams. |
| R&D expense | Decreased to $17.5M from $21M | Lower compensation from resource optimization and labor allocation, partly offset by timing of ENHANZE investments in the new high-yield rHuPH20 manufacturing process. |
| SG&A expense | Increased to $41.6M from $35.7M | Increased compensation expense and consulting and professional service fees. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Merck IP litigation and PGR challenges | — | District court case for infringement of 15 MDASE patents awaiting a scheduling order; four Merck PGRs instituted with a March 2, 2026 hearing and first decisions expected June 2, 2026. | Rising |
| Growth catalysts driving royalty inflections | — | 14 catalysts identified, 11 already realized, described as the broadest set in company history. | Rising |
| CMS draft Part B guidance / IRA risk | — | Company submitted a comment letter arguing the draft policy is flawed; final guidance expected in the fall; management confident in no change. | Steady |
| Capital return via share repurchases | — | Completed second $250M tranche and initiated a third $250M tranche of the $750M plan; over $1.85B repurchased since 2019. | Rising |
| Shift toward subcutaneous and at-home delivery | — | Most next-generation ENHANZE assets are subcutaneous-only or developing subcu alongside IV, reflecting a push toward patient self-delivery. | Rising |
| M&A focus on durable royalty platforms | — | Pursuing new drug delivery platforms with long royalty streams, disciplined on net leverage, willing to go up toward ~3x for the right deal. | Steady |