For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
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.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Halozyme Therapeutics ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2015 would be worth $4,020.91, or a gain of 302.09%, as of January 27, 2025, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 197.36% and the price of gold went up 105.51% over the same time frame.
Analysts are forecasting more upside for HALO too.
Halozyme's 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 in future quarters. Halozyme is also focused on signing new collaboration deals to aid growth which bodes well. 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.
The stock is up 15.87% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024. 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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