What Management Said

Read the full Q4 2025 transcript ↗

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. This level of execution has created a clear value inflection for Halozyme, unlocking multiple drivers of long-term, durable, and profitable revenue. The increase in our royalty revenue reflects the continued strength of our ENHANZE-enabled products and in particular, DARZALEX Subcutaneous, Phesgo, and VYVGART Hytrulo.

Johnson & Johnson reported total DARZALEX sales grew 22% operationally in 2025, reaching $14.4 billion for the year. This performance resulted in $483 million in royalty revenues to Halozyme, representing 29% year-over-year growth. This continued strong growth will be driven by DARZALEX subcutaneous with ENHANZE, which today represents 97% share of sales in the United States. Phesgo also delivered meaningful growth for Roche in 2025, increasing 48% year-over-year to CHF 2.4 billion, or approximately $3 billion, reflecting its position as a durable global blockbuster.

This resulted in $105.6 million in royalty revenue to Halozyme, representing 51% year-over-year growth. VYVGART and VYVGART Hytrulo with ENHANZE grew 90% year-over-year to $4.15 billion. This performance resulted in royalty revenues of $157.2 million for Halozyme, representing 444% year-over-year growth. This is really just the beginning for VYVGART Hytrulo, with multiple studies exploring expanded and new indications, supporting the long-term growth of this important blockbuster product.

What went well
  • Halozyme delivered record full-year 2025 total revenue of $1.4 billion, up 38%, with royalty revenue up 52% to $867.8 million driven by DARZALEX Subcutaneous, Phesgo, and VYVGART Hytrulo.
  • Fourth quarter total revenue increased 52% to $451.8 million, with royalty revenue up 51% year-over-year to $258 million.
  • The company expanded its drug delivery portfolio from two to four technologies via the Elektrofi Hypercon and Surf Bio hyperconcentration acquisitions, both with IP into the mid-2040s, positioning Halozyme as a one-stop shop for subcutaneous delivery.
  • Partners advanced multiple ENHANZE approvals, including DARZALEX Faspro for smoldering multiple myeloma, RYBREVANT subcutaneous approvals in the U.S., Japan, and China, and the company signed three new ENHANZE collaborations expanding into obesity and inflammatory bowel disease plus a Viatris auto-injector agreement.
  • VYVGART and VYVGART Hytrulo with ENHANZE grew 90% year-over-year to $4.15 billion, generating $157.2 million in royalties for Halozyme (up 444%), while DARZALEX subcutaneous reached 97% U.S. share and Phesgo conversion from IV Perjeta rose to 54%.
  • The company strengthened its balance sheet by issuing $1.5 billion of convertible notes, upsizing its revolver to $750 million, ending the year at 2.1x net debt to EBITDA, and presented preclinical data supporting ENHANZE use with antibody drug conjugates.
What went wrong
  • GAAP diluted EPS fell to $2.50 from $3.43 and non-GAAP diluted EPS slipped to $4.15 from $4.23, reflecting the unfavorable ~$2.30 per share impact of the $285 million Surf Bio acquired IP R&D charge recognized in the fourth quarter.
  • Net income for the full year declined to $316.9 million from $444.1 million in 2024, primarily due to the same acquired IP R&D expense.
  • SG&A rose to $207.1 million from $154.3 million, driven by litigation expenses, consulting and professional services, transaction-related costs, and higher compensation.
  • Cost of sales increased to $228.8 million from $159.4 million on higher product volumes.

Guidance Changes

MetricPeriodCurrent guidance
Total revenueFY2026$1.71-$1.81 billion (22%-30% growth) (Reiterated)
Royalty revenueFY2026$1.13-$1.17 billion (30%-35% growth) (Reiterated)
Adjusted EBITDAFY2026$1.125-$1.205 billion (includes ~$60 million Hypercon/Surf Bio investment) (Reiterated)
Non-GAAP diluted EPSFY2026$7.75-$8.25 (Reiterated)
Q1 royalty revenue cadenceQ1 2026approximately 5%-10% below Q4 2025 due to annual contractual rate resets, with sequential growth thereafter (New)
Net debt to EBITDAEnd of 2026below 1x (Delevering)

Performance Breakdown

MetricYoYNote
Total revenue +38% to $1.4 billion Sustained ENHANZE momentum and royalty growth
Royalty revenue +52% to $867.8 million Continued uptake of ENHANZE-enabled products, notably DARZALEX SC, VYVGART Hytrulo, and Phesgo
DARZALEX royalties +29% to $483 million DARZALEX total sales grew 22% operationally to $14.4 billion, 97% subcutaneous share in U.S.
VYVGART Hytrulo royalties +444% to $157.2 million VYVGART franchise grew 90% to $4.15 billion; prefilled syringe expanded prescriber base and adoption
Phesgo royalties +51% to $105.6 million Phesgo grew 48% to CHF 2.4 billion as Roche's top growth driver with conversion reaching 54%
Net income down to $316.9 million from $444.1 million $285 million Surf Bio acquired IP R&D charge

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
ENHANZE with antibody drug conjugates—New growth opportunity; preclinical data showed 87%/50%+ lower injection-site ADC levels at 24 hours and 75%/61% lower Cmax for two ADCs, supporting improved benefit-risk; multiple partner discussions underwayEmerging
Hypercon technology—Three partnerships, two programs advancing to phase I by end of 2026, first approvals projected 2030-2031; projected ~$1 billion in royalties within five years of first launches in the mid-2030sBuilding
Portfolio expansion via M&ATwo delivery technologiesFour technologies (ENHANZE, auto-injectors, Hypercon, Surf Bio); portfolio expected to nearly double from 19 to 36 products by 2028Growing
New ENHANZE licensingThree signed in 2025One to three more ENHANZE agreements expected in 2026; six new ENHANZE programs projected to enter phase ISustained cadence
Merck/Alteogen litigation—IPR filed against Alteogen treated separately from infringement case against Merck; awaiting scheduling order, both parties expected before district court in JuneOngoing

Q&A Summary

What happens to the DARZALEX collaboration after the ENHANZE agreement with J&J expires in 2032?
Management expects to enter discussions with J&J closer to the time to extend the agreement and API supply; given the brand's importance and Halozyme's safety and reliability track record, J&J is not expected to take the risk of sourcing API elsewhere.
What are the regulatory paths for ADCs converting to subcutaneous, and what are current treatment paradigms?
For IV-to-subQ conversions of approved products, a traditional PK non-inferiority approach is expected; products seeking additional efficacy or safety benefits would require appropriate phase trials. Many ADCs are used in combination (often with products going subQ), so subQ delivery can reduce or eventually eliminate infusion center time as ADCs move to first line.
How does the IPR filed against Alteogen affect the Merck district court litigation, and what about Merus' petosemtamab opportunity?
The Alteogen IPR is a separate part of IP strategy from the Merck infringement case; the judge allowed certain discovery including access to the Merck-Alteogen agreement and Keytruda SC, with both parties expected before the district court in June. Petosemtamab is early in its potential with many indications likely; an all-subQ regimen with PD-1s going subcutaneous is seen as where treatment is heading.
What progress is being made toward the clinic with Hypercon products and what updates should be expected?
Two partners are advancing to phase I clinical testing in 2026 (already-approved blockbuster mechanisms), with clinical scale-up batches and IND filings underway and starts on track for Q4. Update specifics are partner-confidential, though patient studies will likely appear on clinicaltrials.gov; the development path mirrors ENHANZE (phase I dose-finding then phase III non-inferiority).
Are the two Hypercon phase I starts existing ENHANZE products, and how many ENHANZE products could transition to Hypercon?
Targets are confidential beyond being established blockbuster mechanisms. Across the portfolio there is a strong push toward smaller-volume, at-home or short office injections, with potential for three-to-four-times concentration increase (three-to-four-times volume reduction), putting patients in control of their treatment.
What are expectations for new auto-injector partnerships and how will sales be reported?
Progress is anticipated on the high-volume auto-injector (3-10 mL, 10 mL in 30 seconds) this year with interest from current and new partners. Revenue is recognized as product sales from device sales (similar to API), with associated royalties recognized as royalty revenue when products are licensed with ENHANZE.

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Q4 2025 call
Reported 2026-02-17 · figures from the Halozyme Therapeutics, Inc. Q4 2025 earnings call.

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