Shares of Halozyme Therapeutics, Inc. HALO were up 5% on Jan. 8 after the company raised its guidance for 2025. The stock gained another 1.8% in after-hours trading. HALO also maintained its full-year 2024 financial guidance

The company also announced that it has entered into a new $250 million accelerated share repurchase program under the previously announced $750 million share repurchase program.

HALO’s top line comprises product sales, royalty payments from Roche RHHBY for Phesgo and J&J JNJ for subcutaneous Darzalex as well as revenues under collaborative agreements related to its Enhanze technology with some large pharma companies.

Several companies use HALO’s Enhanze technology to develop a subcutaneous formulation of their currently marketed drugs. The company has eight marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s Darzalex and Roche’s Phesgo.

In the past year, shares of Halozyme have rallied 55.2% against the industry’s decline of 14.4%.

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HALO's 2025 Financial Guidance

Total revenues are now expected in the range of $1.15 billion to $1.22 billion in 2025, implying year-over-year growth of 16% to 23%. Revenues were earlier projected in the range of $1.09 billion to $1.17 billion.

Adjusted EBITDA is now expected in the band of $755-$805 million, implying year-over-year growth of 24% to 32%. Adjusted EBITDA was earlier expected in the band of $710-$760 million.

Total revenues and adjusted EBITDA are expected to grow owing to the strong early adoption of Vyvgart Hytrulo for generalized myasthenia gravis indication and increased royalty revenues due to the continued strong growth of JNJ’s Darzalex SC and RHHBY’s Phesgo and higher product sales from Xyosted.

Royalty revenues are now anticipated in the range of $725-$750 million, implying year-over-year growth of 30% to 35%. Previously, royalty revenues were expected to be $650-$675 million.

Adjusted earnings are now expected in the range of $4.95-$5.35 per share in 2025, implying growth of 21% to 30% year over year. Adjusted earnings were earlier projected in the band of $4.45-$4.85 per share.

HALO’s earnings per share guidance does not consider the impact of potential future share repurchases.

HALO's Preliminary 2024 Financial Guidance

The preliminary financial guidance for the full year 2024 was in line with the previous guidance issued during its third-quarter 2024 results in October 2024.

Preliminary total revenues are still expected in the range of $970 million to $1.02 billion in 2024.

Royalty revenues are anticipated in the range of $550-$565 million.

Adjusted EBITDA is expected to be between $595 million and $625 million in 2024.

Halozyme expects net income to be in the range of $419 million to $443 million in 2024.

The company expects earnings of $3.22-$3.40 per share in 2024 while adjusted earnings are expected in the range of $4.00-$4.20 per share.

HALO's Zacks Rank & Another Key Pick

Halozyme currently carries a Zacks Rank #1 (Strong Buy).

Another top-ranked stock in the biotech sector is Puma Biotechnology, Inc. PBYI, sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Puma Biotechnology’s 2025 earnings per share have increased from 42 cents to 54 cents. In the past year, shares of PBYI have declined 25.7%.

PBYI’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 32.78%.

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