SAN DIEGO - Halozyme (NASDAQ:HALO) Therapeutics, Inc. (NASDAQ: HALO), a biopharmaceutical company, has updated its 2024 financial guidance and five-year outlook following the grant of a European patent for its ENHANZE® drug delivery technology.
The new patent, which extends to March 6, 2029, will be validated in 37 European countries and is expected to sustain the original royalty rate for DARZALEX SC, a subcutaneous treatment, in Europe.
The company now anticipates total revenue for 2024 to be between $935 million and $1,015 million, marking an increase from the previously forecasted range of $915 to $985 million. This upward revision represents a growth of 13% to 22% over the company's 2023 revenue. Royalty revenue is projected to grow by 16% to 24%, amounting to $520 million to $555 million.
Adjusted EBITDA is also expected to rise, with projections set at $555 million to $615 million, indicating a growth of 30% to 44% compared to the previous year. Furthermore, Halozyme forecasts a non-GAAP diluted earnings per share of $3.65 to $4.05, up from the earlier range of $3.55 to $3.90, reflecting an increase of 32% to 46% over 2023.
The financial update comes in light of the patent grant, which secures the royalty rate for sales of DARZALEX SC in Europe under the ENHANZE® license with Janssen. The company has stated that the new patent will not affect royalties under other ENHANZE® licenses, as those are already expected to extend beyond the expiration of the new patent.
Halozyme's ENHANZE® technology is designed to facilitate the subcutaneous delivery of injectable drugs, aiming to reduce the treatment burden for patients. The company's technology has been used in more than 800,000 patient treatments across over 100 global markets, and it has licensed ENHANZE® to several leading pharmaceutical firms.
The company will provide more details on the impact of the new European patent and its updated financial outlook in an investor presentation. This update is based on a press release statement from Halozyme Therapeutics , Inc.
In other recent news, biopharmaceutical company Halozyme Therapeutics secured a new European patent for its ENHANZE® drug delivery technology, extending its intellectual property rights until 2029. The patent is expected to maintain the original royalty rate for DARZALEX SC, a treatment for multiple myeloma, in Europe until its expiration.
The U.S. Food and Drug Administration also updated the review date for Halozyme's Biologics License Application of a subcutaneous formulation of Opdivo, co-formulated with ENHANZE® technology, setting a new goal date for December 29, 2024.
In financial developments, Halozyme reported strong Q1 results, with a 15% year-over-year royalty growth for the 15th consecutive quarter, driven by their Wave 2 products. The company anticipates a 10-19% increase in total revenue for the year, projecting amounts between $915 million and $985 million. EBITDA is expected to grow by 26-37%, reaching $535 million to $585 million, while non-GAAP EPS growth is forecasted at 28-41%, resulting in $3.55 to $3.90 per share.
Halozyme also announced a new $750 million share repurchase program, following a $250 million Accelerated Share Repurchase in the previous quarter. The company is actively pursuing new partnerships and advancing their product pipeline, including the Wave 3 and Wave 4 products with significant sales potential. These developments highlight recent advancements and financial results for Halozyme Therapeutics.
InvestingPro Insights
Halozyme Therapeutics, Inc. (NASDAQ: HALO) has shown a robust financial performance as it continues to expand its ENHANZE® technology's reach. With a market capitalization of approximately $5.81 billion, the company is positioning itself as a significant player in the biopharmaceutical industry.
According to recent metrics, Halozyme's P/E ratio stands at 18.62, reflecting a valuation that is intriguing when paired with its near-term earnings growth. The InvestingPro Data further indicates a strong revenue growth of 22.41% over the last twelve months as of Q1 2024, underlining the company's expanding financial strength.
InvestingPro Tips suggest that Halozyme's management has been actively involved in share buybacks, a sign of confidence in the company's future prospects. Moreover, the company is trading near its 52-week high, with a price sitting at 98.9% of this peak, which may interest investors looking for momentum in the stock's performance. These insights point towards a company that is not only growing in terms of revenue but also demonstrating a commitment to enhancing shareholder value.
For investors seeking a deeper dive into Halozyme's prospects, InvestingPro offers a range of additional insights. Currently, there are five more InvestingPro Tips available on the InvestingPro platform, which can be accessed at https://www.investing.com/pro/HALO. Readers of this article can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a more comprehensive understanding of Halozyme's market position and potential investment opportunities.
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