Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 29 Jan, 26 | HALO | Buy | USD 72.83 | USD 76.5 | USD 81.0 | 8 days | Closed |
11.26%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Halozyme Therapeutics, Inc., a biopharmaceutical company, researches, develops, and commercializes of proprietary enzymes and devices in the United States, Switzerland, Belgium, Japan, and internationally. The company's products are based on the patented recombinant human hyaluronidase enzyme (rHuPH20) that enables delivery of injectable biologics, such as monoclonal antibodies and other therapeutic molecules, as well as small molecules and fluids. It offers Hylenex recombinant, a formulation of rHuPH20 that facilitates subcutaneous (SC) administration to enhance the dispersion and absorption of other injected drugs in SC urography and to enhance resorption of radiopaque agents; and XYOSTED, an injection for SC administration of testosterone replacement therapy. The company also provides Herceptin (trastuzumab) under the brand name Herceptin Hylecta; and Phesgo to treat breast cancer; Mabthera SC for chronic lymphocytic leukemia treatment; Tecentriq SC for IV infusion; Ocrevus SC for multiple sclerosis; HYQVIA to treat primary immunodeficiency disorders; DARZALEX to treat amyloidosis, and smoldering and multiple myeloma; epinephrine Injection to treat allergic reactions; nivolumab and relatlimab to treat metastatic or unresectable melanoma; teriparatide injections; ARGX-113; and ARGX-117 to treat severe autoimmune diseases in multifocal motor neuropathy. It has collaborations and licensing agreements with F. Hoffmann-La Roche, Ltd. and Hoffmann-La Roche, Inc.; Takeda Pharmaceuticals International AG and Baxalta US Inc.; Pfizer Inc.; Janssen Biotech, Inc.; AbbVie, Inc.; Eli Lilly and Company; Bristol Myers Squibb Company; argenx BVBA; ViiV Healthcare; Chugai Pharmaceutical Co., Ltd.; Acumen Pharmaceuticals, Inc.; Merus N.V.; and Skye Bioscience, Inc. The company was founded in 1998 and is headquartered in San Diego, California.
Significant Operating Leverage and Profit Expansion: Operating income improved markedly from USD 163.2 million in Q3 FY24 to USD 217.9 million in Q3 FY25, translating into a 34% year-over-year increase
Sharp Acceleration in High-Margin Royalty Revenue: During Q3 FY25, Halozyme’s royalty revenue increased from USD 155.1 million in Q3 FY24 to USD 236.0 million, representing a substantial 52% year-over-year growth
Rising Cost of Sales Pressuring Gross Margins: Cost of sales increased from USD 49.4 million in Q3 FY24 to USD 55.2 million in Q3 FY25, marking a 12% rise year-over-year
Sharp Decline in Collaboration and Milestone Revenue: Revenues under collaborative agreements declined significantly from USD 48.4 million in Q3 FY24 to USD 24.0 million in Q3 FY25, reflecting a 50% year-over-year decrease
Halozyme’s financial performance remains highly dependent on sustained commercial success and regulatory expansion of a concentrated portfolio of ENHANZE®-enabled partner therapies, exposing earnings to partner execution risks, competitive biologic alternatives, and potential patent or reimbursement challenges
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 72.83 | 65.0 | 76.5 | 81.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Royalty-Led Revenue Expansion Driving Top-Line Momentum: Halozyme delivered a robust revenue performance in Q3 FY25, with total revenue rising to USD 354.3 million from USD 290.1 million in Q3 FY24, reflecting a 22% year-over-year increase, largely fueled by strong royalty inflows from ENHANZE®-enabled therapies. Royalty revenue alone surged 52% to USD 236.0 million, supported by accelerating adoption of blockbuster products such as DARZALEX® SC, Phesgo®, and VYVGART® Hytrulo across global markets.
Sustained Commercial Uptake Across Partner Products: Operational execution remained strong as Halozyme benefited from expanding subcutaneous drug conversions and multiple new regulatory approvals across Europe, the U.S., and Japan. The continued shift from intravenous to subcutaneous delivery for key biologics significantly enhanced partner product penetration, reinforcing the Company’s recurring royalty-driven business model and expanding long-term revenue visibility.
Margin Expansion Through High-Quality Revenue Mix: The sharp growth in high-margin royalty income translated into notable profitability improvements. Operating income increased to USD 217.9 million from USD 163.2 million, representing a 34% year-over-year rise, while adjusted EBITDA expanded 35% to USD 248.2 million, reflecting strong operating leverage and disciplined cost control amid rising revenues.
Improving Bottom-Line Performance and Earnings Strength: Net income advanced to USD 175.2 million in Q3 FY25 from USD 137.0 million in Q3 FY24, marking a 28% increase, driven by revenue scale and stable operating expense growth. GAAP diluted earnings per share rose 36% to USD 1.43, while non-GAAP diluted EPS climbed 35% to USD 1.72, highlighting meaningful shareholder value creation.
Operational Efficiency and Cost Discipline: While total operating expenses increased modestly by 7% year-over-year to USD 136.3 million, the Company achieved efficiency gains through lower research and development spending and controlled amortization expenses. This was partially offset by higher SG&A driven by acquisition-related diligence and litigation costs, yet overall expense growth remained well below revenue growth, reinforcing scalability.
Strengthening Balance Sheet and Cash Generation: Halozyme closed Q3 FY25 with USD 702.0 million in cash and marketable securities, up from USD 596.1 million at year-end FY24, supported by strong operating cash flows despite ongoing share repurchases. This financial flexibility positions the Company to fund strategic acquisitions such as Elektrofi while continuing shareholder returns.
Upward Revision of Full-Year Growth Outlook: Reflecting sustained momentum, Halozyme raised its FY25 guidance, projecting total revenue of USD 1.30–USD 1.38 billion, adjusted EBITDA of USD 885–USD 935 million, and non-GAAP EPS of USD 6.10–USD 6.50, implying continued strong double-digit growth across profitability metrics driven primarily by royalty expansion.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Halozyme Therapeutics, Inc. (NASDAQ: HALO) at the closing market price of USD 72.83, as on Jan 29, 2026
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| HALO Halozyme Therapeutics Inc |
-0.02 0.03% | 68.55 | 26.72 | 5.13 | 5.80 | 168.90 | 7.34 | 17.88 |
| NVO Novo Nordisk A/S |
-0.33 0.76% | 43.19 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
- -% | 43.40 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
-7.36 1.60% | 451.63 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
2.01 0.33% | 609.94 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 29, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
Australia