Halozyme Therapeutics Raises 2026 Guidance After Hypercon, Surf Bio Deals Extend Platform Into 2040s

Halozyme Therapeutics (NASDAQ:HALO) used an investor conference call to outline a series of strategic and financial updates, highlighting what CEO Dr. Helen Torley described as an unusually concentrated period of “value-creating events” in late 2025. Management emphasized expanding beyond its core ENHANZE franchise into additional subcutaneous (SC) delivery technologies, while also raising portions of its financial outlook for 2026 and updating longer-term targets through 2028.

Two acquisitions expand Halozyme’s delivery platform

Torley said the company expanded from one to three royalty-bearing SC delivery technologies in 2025, citing two acquisitions intended to extend the company’s opportunity set into the mid-2040s.

• Elektrofi (Hypercon): Halozyme closed the acquisition in November 2025, adding Hypercon, a “biologic hyperconcentration” technology with intellectual property (IP) into the mid-2040s. Management said Hypercon is expected to be “clinic-ready” in 2026.
• Surf Bio: Halozyme acquired Surf Bio in late December 2025, adding a second hyperconcentration technology with long-duration IP into the mid-2040s.

Torley said the acquisitions broaden Halozyme’s ability to work “exclusively and non-exclusively” across a wider range of targets and mechanisms, positioning the company for “the next waves of major SC innovation following ENHANZE.”

How ENHANZE, Hypercon, and Surf Bio fit together

Management framed the expanded portfolio as a set of tools to solve different constraints in SC drug delivery. Torley reiterated that ENHANZE enables rapid, large-volume SC delivery by temporarily degrading hyaluronan in the subcutaneous space. She cited examples including administration of 5 mL in as little as 30 seconds and 15 mL in about 3 minutes for certain ENHANZE-enabled partner products.

Torley also pointed to two areas of emerging interest for ENHANZE: potential applications with nucleic acids (including interest in lipid nanoparticle and nucleic acid conjugate formulations) and certain antibody-drug conjugates, where she said partners are interested in whether changes in pharmacokinetics could improve the risk-benefit profile.

For smaller-volume, at-home administration, Halozyme highlighted Hypercon and Surf Bio, which management said can enable hyperconcentration of therapeutics up to approximately 500 mg/mL—potentially reducing injection volumes to less than 2 mL or into a 2 mL to 10 mL range that could fit either a small-volume autoinjector or Halozyme’s proprietary high-volume autoinjector.

Torley said having two hyperconcentration technologies matters because they work differently and can be matched to specific partner needs. Hypercon uses a patented dehydration process, while Surf Bio combines a proprietary excipient with spray drying to create stable, “dense, low-friction particles.” In response to analyst questions, management said partners are expected to select between approaches based on target product profiles and molecule-specific formulation needs, noting Surf Bio has demonstrated feasibility with small molecules in addition to monoclonal antibodies.

On timelines, Torley said Halozyme expects two partners to initiate Phase I studies using Hypercon by the end of 2026 or earlier, while Surf Bio is earlier-stage and is projected to be clinic-ready by the end of 2027 or in early 2028.

Preliminary 2025 results and raised 2026 guidance

Torley provided preliminary 2025 revenue expectations and said the company expects to exceed its previously updated 2025 total revenue guidance while achieving its 2025 royalty revenue guidance.

• 2025 total revenue (preliminary estimate): $1.385 billion to $1.4 billion, representing 36% to 38% growth over 2024.
• 2025 royalty revenue (preliminary estimate): $865 million to $870 million, representing 51% to 52% growth over 2024.

Management said it was not updating adjusted EBITDA or non-GAAP EPS at that time because it was still working through the accounting impact of the recent acquisitions, with additional detail expected alongside fourth-quarter results.

For 2026, Torley said Halozyme now expects to exceed $1 billion in royalty revenue a year earlier than its original 2018 projection, and the company raised 2026 guidance:

• 2026 total revenue guidance: $1.71 billion to $1.81 billion.
• 2026 royalty revenue guidance: $1.13 billion to $1.17 billion.
• 2026 non-GAAP diluted EPS guidance: $7.75 to $8.25.

Torley noted the 2026 outlook includes approximately $60 million of new operating expense tied to advancing Hypercon and Surf Bio, which had not been included in prior 2026 guidance.

In the Q&A, CFO Nicole (last name not provided in the transcript) said the 2026 raise was driven by royalties—particularly the trajectory of key products including DARZALEX, Ocrevus, PHESGO and VYVGART Hytrulo—as well as increased expectations for product sales tied to API sales to partners. She added that the three new ENHANZE collaborations signed late in 2025 primarily impacted 2025 collaboration revenue via upfront payments, with more modest contributions expected near term as programs move through development.

Updated 2026–2028 outlook and long-term growth roadmap

Halozyme updated its longer-term framework through 2028. Management projected 2028 total revenue will exceed $2 billion and guided to 2028 royalty revenue of $1.46 billion to $1.51 billion, which the company described as a 26% to 28% CAGR from 2024 to 2028. Non-GAAP EPS was projected at $10.50 to $11.10 in 2028, which Torley said would be more than double 2024 levels.

Torley also outlined profitability targets tied to Halozyme’s “asset light” model, projecting for the 2026–2028 period gross margin above 80%, operating margin greater than 60%, and free cash flow exceeding 70% of EBITDA.

On product drivers, Torley highlighted DARZALEX and VYVGART Hytrulo as major contributors, citing 2025 DARZALEX sales of $14.3 billion and 2025 VYVGART Hytrulo sales of $4.15 billion. She also said Halozyme anticipates six new ENHANZE products entering Phase I in 2026, bringing the ENHANZE development portfolio to 13 products, and noted that recent study design innovations and FDA comfort with ENHANZE could support shorter development timelines in some cases.

For Hypercon, Torley said Elektrofi had signed licensing agreements with argenx, Johnson & Johnson, and Eli Lilly, and reiterated expectations for two partners to begin Phase I studies by the end of 2026 or earlier. She said Halozyme projects potential approvals in 2030–2031 and sees the possibility of three to five additional launches by the mid-2030s based on ongoing feasibility work. Torley also described a potential opportunity to transition certain ENHANZE partner products to Hypercon to reduce injection volume and enable autoinjector use, which she said could extend royalty durability into the 2040s.

Management added that additional M&A remains a stated growth lever. Torley said Halozyme intends to evaluate drug delivery technology opportunities where it can apply its expertise, and also pursue acquisitions that could add growing revenue businesses, potentially contributing nearer-term revenue while extending opportunities into the 2040s.

About Halozyme Therapeutics (NASDAQ:HALO)

Halozyme Therapeutics, Inc is a biopharmaceutical company headquartered in San Diego, California, that specializes in the development and commercialization of novel drug-delivery technologies. Founded in 1998, Halozyme focuses on enabling subcutaneous administration of biologic therapies through its proprietary platforms. The company’s core mission is to improve patient access and convenience while maintaining efficacy and safety profiles comparable to or better than traditional routes of administration.

The company’s flagship technology, ENHANZE®, is based on recombinant human hyaluronidase PH20 (rHuPH20), an enzyme that transiently degrades hyaluronan in the extracellular matrix.