Halozyme shares fall 6.3%; company raises all four 2026 guidance ranges

Halozyme (HALO), whose ENHANZE drug delivery technology is in ten commercialized products across more than 100 global markets, reported third-quarter revenue of $493.0 million, up 39% from a year earlier.

Shares fell 6.3% at 9:42 a.m. ET, from a $122.96 close.

Halozyme raised all four of its 2026 guidance ranges.

Here's how the company did:

• Revenue: $493.0 million vs. $354.3 million a year earlier; $500.66 million expected
• Non-GAAP diluted EPS: $2.39 vs. $1.72 a year earlier; $2.40 expected
• GAAP diluted EPS: $2.01 vs. $1.43 a year earlier

2026 guidance

Total revenue guidance rose to $1.860 billion to $1.925 billion from $1.835 billion to $1.910 billion set on Aug. 6, or growth of 33% to 38% over 2025.

Royalty revenue guidance rose to $1.235 billion to $1.255 billion from $1.220 billion to $1.245 billion, for growth of 42% to 45%.

Adjusted EBITDA guidance rose to $1.240 billion to $1.290 billion from $1.225 billion to $1.280 billion, including about $60 million of new Hypercon and Aerocon investments.

Non-GAAP diluted EPS guidance is $8.75 to $9.05, from $8.65 to $9.00.

Royalties and product sales

Royalty revenue rose 44% to $341.0 million from $236.0 million a year earlier. Growth was driven by uptake of ENHANZE partner products launched since 2020, predominantly VYVGART Hytrulo by argenx, DARZALEX SC by Janssen and Phesgo by Roche.

Net product sales were $137.3 million, from $94.2 million. Cost of sales rose to $82.5 million from $55.2 million, mainly on higher bulk rHuPH20 sales.

In October, the Dutch specialized patent court in The Hague found Merck Sharp & Dohme B.V. infringing one of Halozyme's MDASE patents. The court ordered an injunction against Keytruda Qlex in Belgium, Denmark, France, Ireland, Italy, Sweden, Switzerland and the Netherlands.

Expenses and charges

Amortization of intangibles was $29.5 million, up from $17.8 million, following the acquisition of Elektrofi in November 2025.

Research and development expense was $27.8 million, from $17.3 million, mainly from the Elektrofi and Surf Bio acquisitions in the fourth quarter of 2025.

Selling, general and administrative expense was $58.2 million, from $46.1 million, including patent litigation costs, the Elektrofi acquisition and higher compensation expense.

Cash and buybacks

Cash, cash equivalents, restricted cash and marketable securities were $1.08 billion on Sept. 30, up from $145.4 million on Dec. 31, 2025, mainly on convertible notes and operating cash.

Halozyme completed $1.5 billion of convertible notes this year. It repurchased $400 million of shares in 2026, including about 0.8 million shares for $67.2 million in the third quarter at an average price of $79.47 per share under its May 2026 program.