SAN DIEGO - Halozyme (NASDAQ:HALO) Therapeutics, Inc. (NASDAQ: HALO) announced today that the revocation of a co-formulation patent by the European Patent Office (EPO) held by its partner Janssen Biotech, Inc. will not affect its revenue projections. The company reaffirms its 2024 royalty revenue guidance of $520-555 million and anticipates surpassing $1 billion in royalty revenues by 2027.
The EPO's decision to revoke Janssen's patent for DARZALEX® (daratumumab) SC does not impact Halozyme's U.S. or European royalty revenues for DARZALEX FASPRO and SC through 2032. The company's president and CEO, Dr. Helen Torley, expressed confidence in the company's revenue outlook, citing eight approved partner products, with two more expected by 2025.
Dr. Torley also mentioned that the EPO decision has no bearing on Halozyme's other licensees' ability to secure co-formulation patents or on the company's composition of matter patents for its ENHANZE® technology in the U.S. and Europe. She added that if Janssen appeals, the patent would remain in force until a final decision is made.
Halozyme will discuss the implications of the EPO decision and provide updates on its intellectual property portfolio during an Investor Update conference call scheduled for today. The company specializes in ENHANZE® drug delivery technology, which aims to improve patient experiences by facilitating subcutaneous delivery of injected drugs. The technology has been used in over 800,000 patient treatments worldwide.
Despite the setback in Europe, the company's forward-looking statements remain positive, forecasting continued growth and royalty payments from its partners' development and commercialization efforts. However, Halozyme acknowledges that actual results may differ due to various risks and uncertainties, including potential impacts on its composition of matter patents and the outcomes of any appeals process.
This article is based on a press release statement from Halozyme Therapeutics , Inc.
In other recent news, Halozyme Therapeutics has reported robust Q2 2024 earnings, with total revenue reaching $231 million, largely due to a 12% increase in royalty revenue from key products. The company has also expanded its partnership with argenx, adding four new pipeline candidates, and has broadened its global collaboration license agreement, allowing partners to utilize Halozyme's ENHANZE technology for the development of rapid subcutaneous delivery systems. This expansion is expected to generate upfront fees of $7.5 million for each of the four new targets, totaling $30 million, with potential future milestone payments of up to $85 million per target.
TD Cowen has maintained its Buy rating and a price target of $70.00 for Halozyme, highlighting the company's potential for an expansion of the U.S. patent portfolio and an active pursuit of mergers and acquisitions. However, JPMorgan has downgraded Halozyme's stock from Overweight to Neutral, despite an increased price target. H.C. Wainwright also maintained a Buy rating and a $65.00 price target for Halozyme.
These recent developments highlight Halozyme's ongoing business operations and financial performance, with an emphasis on earnings and revenue growth, strategic partnerships, and analyst ratings. It's important to note that these are recent developments and do not represent a comprehensive view of the company.
InvestingPro Insights
Halozyme Therapeutics' (NASDAQ: HALO) confident stance on its revenue projections, despite the European Patent Office's decision, is supported by several key financial metrics and insights from InvestingPro.
According to InvestingPro data, Halozyme's revenue for the last twelve months as of Q2 2024 stood at $873.3 million, with a robust revenue growth of 12.88% over the same period. This aligns with the company's optimistic outlook on reaching $1 billion in royalty revenues by 2027.
The company's financial health appears strong, with an InvestingPro Tip highlighting that cash flows can sufficiently cover interest payments. This financial stability is crucial as Halozyme navigates potential challenges from the patent revocation and possible appeals process.
Another InvestingPro Tip notes that Halozyme is trading at a low P/E ratio relative to near-term earnings growth, with a current P/E ratio of 19.35. This could suggest that the stock is undervalued, especially considering the company's reaffirmed revenue guidance and growth prospects.
Investors might also be interested to know that Halozyme has a perfect Piotroski Score of 9, according to InvestingPro Tips. This score indicates strong financial health and potential for future performance, which could be reassuring for stakeholders in light of the recent patent news.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Halozyme Therapeutics, providing a deeper insight into the company's financial position and market performance.
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