How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Halozyme Therapeutics (HALO) ten years ago? It may not have been easy to hold on to HALO for all that time, but if you did, how much would your investment be worth today?
With that in mind, let's take a look at Halozyme Therapeutics' main business drivers.
San Diego, CA-based Halozyme Therapeutics is a biopharmaceutical company, focused on the development and commercialization of novel treatments for oncology indications by targeting tumor microenvironment. The company also licenses its novel drug delivery technology, ENHANZE, for subcutaneous (SC) administration of drugs.
The company’s ENHANZE drug delivery technology helps in developing SC formulation of drugs. Several companies including Roche, Takeda, J&J, AbbVie, Lilly, Bristol-Myers and others are using this technology for developing SC formulation of their currently marketed drugs.It also recognizes revenues from the sale of drug products to its collaboration partners for the development of drugs using its ENHANZE platform.
Halozyme now has eight marketed partnered drugs based on this technology.
Halozyme currently earn royalties on sales of various commercial products by its partners. The ENHANZE platform was developed based on the company’s patented recombinant human hyaluronidase enzyme (rHuPH20).
The company’s commercial portfolio of products include — Hylenex Recombinant and Xyosted, with the latter acquired from Antares Pharma in 2022.
Halozyme derives the majority of its revenues from royalties on sales of partnered drugs. The company generated total revenues of $829.3 million in 2023, up 26% year over year.
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Halozyme Therapeutics, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in November 2014 would be worth $6,540.57, or a gain of 554.06%, as of November 8, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 193.96% and the price of gold increased 120.99% over the same time frame in comparison.
Analysts are forecasting more upside for HALO too.
Halozyme's third-quarter earnings and revenues beat estimates. The company has collaboration deals related to its ENHANZE technology with several large pharma companies that generate milestone payments, driving the top line. Robust demand for the subcutaneous formulation of J&J’s Darzalex and Roche’s Phesgo is boosting royalties and the top line. The momentum is likely to continue. Halozyme is also focused on signing new collaboration deals to aid growth. However, blockbuster drugs like Herceptin and Rituxan that use ENHANZE technology have now started facing biosimilar competition, which is hurting revenues from royalties. High dependence on partners for revenues in the form of royalties and collaborative agreements is a woe. Any deal termination will be a major setback.
Shares have gained 14.43% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report
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