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Halozyme (HALO) Raises 2024 Financial Guidance, Stock Up 13%
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Halozyme Therapeutics’ (HALO - Free Report) shares jumped 12.7% on Jun 6 after it raised its full-year 2024 financial guidance and updated its five-year financial outlook.
This was based on the company’s announcement made earlier this week that it has been granted a new patent in the EU that covers the ENHANZE rHuPH20 product, which is produced using the company's proprietary ENHANZE manufacturing methods.
Per Halozyme, the new patent is included in all of HALO's existing and future ENHANZE licenses, meaning that all of its licensees will benefit from this patent. The patent is set to be validated in 37 EU countries, where it will be legally recognized and enforceable, until the expiry date of Mar 6, 2029.
This enhances the company's competitive edge and provides security for its product and associated technologies. The increased 2024 financial guidance and five-year financial outlook now reflect the original royalty rate for J&J’s (JNJ - Free Report) Darzalex (daratumumab) subcutaneous (SC) in the EU which is facilitated by the new EU patent grant for ENHANZE. The patent is expected to ensure Halozyme’s financial stability and sustained revenues from this partnership until 2029.
Year to date, shares of HALO have rallied 39.2% against the industry’s 3.8% decline.
Image Source: Zacks Investment Research
Halozyme now expects total revenues for 2024 in the range of $935-$1,015 million compared with the previous guidance of $915-$985 million. The updated guidance indicates 13% to 22% growth from the 2023 reported figure and is based primarily on increases in royalty revenues, collaboration revenues and growth in product sales from Xyosted.
Halozyme also anticipates royalty revenues in 2024 in the range of $520-$555 million compared with the previous guidance of $500-$525 million. The updated guidance indicates an uptick of 16% to 24% from the 2023 reported figure, driven by robust demand for J&J’s multiple myeloma drug, Darzalex, and Roche’s Phesgo.
Adjusted EBITDA is expected between $555 million and $615 million in 2024 compared with the previously expected range of $535-$585 million. The updated guidance implies growth of 30% to 44% year over year.
Adjusted diluted earnings per share (EPS) is now expected in the $3.65-$4.05 range compared with the previous guidance of $3.55-$3.90. The new EPS projection indicates 32% to 46% growth from the 2023 reported figure.
However, Halozyme has clarified that its EPS guidance does not consider the impact of potential future share repurchases.
In the upcoming five years (2023-2028), Halozyme now expects its total revenues, royalty revenues, adjusted EBITDA and adjusted diluted EPS to witness a CAGR of 16%, 20%, 25% and 23%, respectively, demonstrating strong prospects for the company.
ENHANZE is Halozyme’s novel drug delivery technology that facilitates the SC administration of drugs. The company licenses this technology to leading pharmaceutical companies, including Roche, Pfizer, J&J, AbbVie, Eli Lilly and Bristol Myers, among others.
These companies use this technology to develop SC formulations of their currently marketed drugs. Halozyme earns royalties on sales of seven commercial products by its partners, including J&J for subcutaneous formulation of its Darzalex.
For other ENHANZE licenses, HALO does not expect the new patent to impact the existing royalty arrangements. These licenses already have issued or pending collaboration patents that ensure the current royalty rates will extend beyond the expiration date of the new patent.
In the past 30 days, the Zacks Consensus Estimate for ALX Oncology’s 2024 loss per share has narrowed from $3.33 to $2.89. During the same period, the consensus estimate for 2025 loss per share has narrowed from $2.85 to $2.73. Year to date, shares of ALXO have plunged 37.7%.
ALX Oncology beat estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 8.83%.
In the past 30 days, the Zacks Consensus Estimate for Annovis’ 2024 loss per share has narrowed from $2.93 to $2.46. During the same period, the consensus estimate for 2025 loss per share has narrowed from $2.83 to $1.95. Year to date, shares of ANVS have plunged 64.4%.
ANVS beat estimates in three of the trailing four quarters and missed once, delivering an average negative surprise of 1.39%.
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Halozyme (HALO) Raises 2024 Financial Guidance, Stock Up 13%
Halozyme Therapeutics’ (HALO - Free Report) shares jumped 12.7% on Jun 6 after it raised its full-year 2024 financial guidance and updated its five-year financial outlook.
This was based on the company’s announcement made earlier this week that it has been granted a new patent in the EU that covers the ENHANZE rHuPH20 product, which is produced using the company's proprietary ENHANZE manufacturing methods.
Per Halozyme, the new patent is included in all of HALO's existing and future ENHANZE licenses, meaning that all of its licensees will benefit from this patent. The patent is set to be validated in 37 EU countries, where it will be legally recognized and enforceable, until the expiry date of Mar 6, 2029.
This enhances the company's competitive edge and provides security for its product and associated technologies. The increased 2024 financial guidance and five-year financial outlook now reflect the original royalty rate for J&J’s (JNJ - Free Report) Darzalex (daratumumab) subcutaneous (SC) in the EU which is facilitated by the new EU patent grant for ENHANZE. The patent is expected to ensure Halozyme’s financial stability and sustained revenues from this partnership until 2029.
Year to date, shares of HALO have rallied 39.2% against the industry’s 3.8% decline.
Image Source: Zacks Investment Research
Halozyme now expects total revenues for 2024 in the range of $935-$1,015 million compared with the previous guidance of $915-$985 million. The updated guidance indicates 13% to 22% growth from the 2023 reported figure and is based primarily on increases in royalty revenues, collaboration revenues and growth in product sales from Xyosted.
Halozyme also anticipates royalty revenues in 2024 in the range of $520-$555 million compared with the previous guidance of $500-$525 million. The updated guidance indicates an uptick of 16% to 24% from the 2023 reported figure, driven by robust demand for J&J’s multiple myeloma drug, Darzalex, and Roche’s Phesgo.
Adjusted EBITDA is expected between $555 million and $615 million in 2024 compared with the previously expected range of $535-$585 million. The updated guidance implies growth of 30% to 44% year over year.
Adjusted diluted earnings per share (EPS) is now expected in the $3.65-$4.05 range compared with the previous guidance of $3.55-$3.90. The new EPS projection indicates 32% to 46% growth from the 2023 reported figure.
However, Halozyme has clarified that its EPS guidance does not consider the impact of potential future share repurchases.
In the upcoming five years (2023-2028), Halozyme now expects its total revenues, royalty revenues, adjusted EBITDA and adjusted diluted EPS to witness a CAGR of 16%, 20%, 25% and 23%, respectively, demonstrating strong prospects for the company.
ENHANZE is Halozyme’s novel drug delivery technology that facilitates the SC administration of drugs. The company licenses this technology to leading pharmaceutical companies, including Roche, Pfizer, J&J, AbbVie, Eli Lilly and Bristol Myers, among others.
These companies use this technology to develop SC formulations of their currently marketed drugs. Halozyme earns royalties on sales of seven commercial products by its partners, including J&J for subcutaneous formulation of its Darzalex.
For other ENHANZE licenses, HALO does not expect the new patent to impact the existing royalty arrangements. These licenses already have issued or pending collaboration patents that ensure the current royalty rates will extend beyond the expiration date of the new patent.
Halozyme Therapeutics, Inc. Price and Consensus
Halozyme Therapeutics, Inc. price-consensus-chart | Halozyme Therapeutics, Inc. Quote
Zacks Rank and Stocks to Consider
Halozyme currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the drug/biotech industry are ALX Oncology Holdings (ALXO - Free Report) and Annovis Bio (ANVS - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, the Zacks Consensus Estimate for ALX Oncology’s 2024 loss per share has narrowed from $3.33 to $2.89. During the same period, the consensus estimate for 2025 loss per share has narrowed from $2.85 to $2.73. Year to date, shares of ALXO have plunged 37.7%.
ALX Oncology beat estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 8.83%.
In the past 30 days, the Zacks Consensus Estimate for Annovis’ 2024 loss per share has narrowed from $2.93 to $2.46. During the same period, the consensus estimate for 2025 loss per share has narrowed from $2.83 to $1.95. Year to date, shares of ANVS have plunged 64.4%.
ANVS beat estimates in three of the trailing four quarters and missed once, delivering an average negative surprise of 1.39%.