DEL MAR – Halozyme Therapeutics, Inc. (Nasdaq: HALO) is poised to bring in more than $1 billion in royalty revenue alone in 2026, one year earlier than the drug delivery technology developer had previously projected.
Nearly a dozen drugs and therapeutic treatments available around the world leverage Halozyme’s primary product, the ENHANZE drug delivery system, which makes it easier for drugs to be delivered subcutaneously, or to the innermost layer of the skin.
The company’s projected range of royalty revenue in the 2026 fiscal year of $1.13 billion to $1.17 billion would not only represent year-over-year growth of between 30% and 35%, but a growth rate of roughly 100% over Halozyme’s revenue from royalties alone just two years ago.
According to Halozyme CEO Helen Torley, Halozyme also expects to make one-to-three new deals for the use of ENHANZE in emerging drug platforms in 2026 and each subsequent year, and the potential launch of up to six ENHANZE-enabled therapeutics later this year.
“The interest and progress and performance of ENHANZE has never been stronger,” Torley said.
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The three most successful products using ENHANZE remain Johnson & Johnson’s Darzalex Faspro for the treatment of adults with multiple myeloma, or bone marrow cancer; argenx’s VYVGART Hytrulo for the treatment of the chronic neuromuscular disease myasthenia gravis; and Roche’s Phesgo for the treatment of HER2-positive breast cancer.
The subcutaneous ENHANZE technology offers a more efficient and convenient method of treatment than standard intravenous administration, which may require patients to attend an infusion clinic for several hours.
In May, argenx received approval from the U.S. Food and Drug Administration for the use of VYVGART Hytrulo in a pre-filled syringe for self-injection, allowing patients to administer the medication themselves in just 20-to-30 seconds, in their own home, using Halozyme’s ENHANZE technology.
“I think the story for diseases like autoimmune disease, neurology, nephrology and even some oncology indications, pharma and biotech are looking to deliver more conveniently for the patient, more rapidly for the patient, and even at home,” Torley said.
Raised Projected Revenue
Halozyme reported at the end of January that its preliminary, unaudited revenue for 2025 is expected to fall between $1.385 billion and $1.4 billion, representing year-over-year growth of between 36% and 38%. The company also estimated its royalty revenue for 2025 to range between $865 million and $870 million.
The company also raised its projected overall 2026 revenue to fall between $1.71 billion and $1.81 billion, which would represent a growth rate as high as 30%. In the week after announcing the preliminary 2025 and projected 2026 figures, shares of HALO rose roughly 6% over $77.
Based on durability of its royalties, which extend into the 2040s, Halozyme also projected its royalty revenue to rise to around $1.5 billion by 2028, though that’s only based on the 10 currently available products that use ENHANZE, according to Torley.
“There is a possibility by 2028 we will have additional approved ENHANZE products that are beginning to contribute there,” she said. “But we take an approach with our guidance of only having derisked assets that have at least positive Phase 3 data, so that projection is just based on those 10 products.”
On Hunt for M&As
With its free cash flow, Halozyme also plans to actively pursue mergers and acquisitions, as it did with its November 2025 acquisition of biopharmaceutical company Elektrofi, Inc., for a total potential value of $900 million and its newly announced acquisition of biopharmaceutical company Surf Bio, Inc., for a total potential value of $400 million
Elektrofi’s Hypercon ultra-high concentration microparticle formulation technology for biologics and Surf Bio’s biologic hyperconcentration technology have the potential to reduce the volume required for a therapeutic treatment like monoclonal antibodies to maintain its efficacy, enabling it to fit into a delivery mechanism such as an auto-injector.
Two of Halozyme’s partners are expected to enter the clinic with the Hypercon technology later this year, while Surf Bio’s technology is not expected to enter the clinic until later this decade, but both technology platforms are expected to contribute to the stability of Halozyme’s product portfolio.
“I spend a lot of my time on M&A assessment, finding the next thing that’s going to excite people about the growth that’s happening and the growth potential for Halozyme,” Torley said. “I think the addition of these technologies that begin to deliver revenue in the ‘30s has got people interested, but we’re still looking to deploy our capital for more M&A and even more growth.”
Halozyme Therapeutics
FOUNDED: 1998
CEO: Helen Torley
HEADQUARTERS: Del Mar
BUSINESS: Subcutaneous drug delivery technology
REVENUE: $1.385 billion – 1.4 billion (FY 2025, preliminary unaudited)
STOCK: HALO (Nasdaq)
EMPLOYEES: ~380
WEBSITE: halozyme.com
CONTACT: [email protected]
NOTABLE: In addition to its San Diego headquarters, Halozyme has offices in Ewing, New Jersey, and Minnetonka, Minnesota.
Eli is an award-winning reporter primarily covering the tech and life sciences industries. He previously worked as the San Diego City Hall reporter for the regional wire City News Service. He has also covered public health, transportation and state and local politics in the San Francisco Bay Area for Local News Matters, the nonprofit arm of the regional wire Bay City News Service, where he also oversaw the development and daily content management of the outlet’s public health and COVID-19 news and resource webpage. He is also a contributing writer covering Minor League Baseball for the analysis and commentary website Baseball Prospectus. Eli is a graduate of San Francisco State University and a native of Northern California.
