Key insights
- Halozyme Therapeutics anticipates minimal impact on its royalty revenue through 2035 from the proposed Medicare Drug Price Negotiation Program rule. The company's analysis indicates that orphan drug protections and biosimilar entry provisions will safeguard its revenue streams. This news suggests stability for Halozyme's business model and its ENHANZE technology partnerships, with no anticipated disruption to new agreements. The stock's current trading below fair value, as noted by InvestingPro, may also present an opportunity for investors.
SAN DIEGO - Halozyme Therapeutics Inc. (NASDAQ:HALO) said today it expects zero to minimal impact on royalty revenue through at least 2035 following its analysis of a proposed Medicare Drug Price Negotiation Program rule issued by the U.S. Centers for Medicare & Medicaid Services on June 12.
The company said the outlook is based on provisions in the proposed rule that maintain orphan drug protections and address how biosimilar entry affects program eligibility, according to a press release statement.
"Based on our analysis of CMS’s proposed rule and the statutory framework established under the One Big Beautiful Bill Act, Halozyme projects zero to minimal impact to its royalty revenues through at least 2035," said Dr. Helen Torley, president and chief executive officer.The company’s financial position appears robust, with revenue surging 39% over the last twelve months to $1.51 billion and a market capitalization of $8.24 billion. According to InvestingPro analysis, the stock is currently trading below its Fair Value, suggesting potential upside for investors. The platform’s comprehensive Pro Research Report, available for HALO and over 1,400 US equities, provides deeper insights into the company’s valuation and growth prospects.
The company said it does not anticipate any impact on its ability to execute new ENHANZE partnership agreements. The ENHANZE drug delivery technology uses the proprietary enzyme rHuPH20 to facilitate subcutaneous delivery of injected drugs and fluids.
ENHANZE has been used in more than one million patients through ten commercialized products across over 100 global markets. The technology is licensed to pharmaceutical companies including Roche, Takeda, Pfizer, Janssen, AbbVie, Eli Lilly, Bristol-Myers Squibb, argenx, ViiV Healthcare, Chugai Pharmaceutical, Acumen Pharmaceuticals, Merus N.V., Skye Bioscience and GSK.
Halozyme said it will continue to engage with CMS and other stakeholders regarding policies affecting innovation and patient access to therapies.
The company is headquartered in San Diego with offices in Ewing, New Jersey; Minnetonka, Minnesota; and Boston, Massachusetts. It also develops and commercializes proprietary products including Hylenex and XYOSTED.
In other recent news, Halozyme Therapeutics reported strong financial results for the first quarter of 2026, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $1.60, exceeding the forecast of $1.54, and reported revenue of $377 million, outperforming the expected $358.45 million. This marked a notable 5.18% surprise in revenue, highlighting the company’s robust financial performance. Citizens maintained a Market Outperform rating with a $92.00 price target, noting the solid start to 2026 and clarity on long-term revenue drivers beyond 2029. Benchmark also reiterated a Buy rating with a $90 price target, despite investor concerns regarding longer-term issues such as the potential impact of the 2022 Inflation Reduction Act and patent litigation with Merck. These recent developments reflect ongoing confidence in Halozyme’s growth prospects.
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