Halozyme Therapeutics Inc (HALO) Reports 15% YoY Increase in Q3 Royalty Revenue, Raises 2023 ...
Halozyme Therapeutics Inc (NASDAQ:HALO) reports a 15% YoY increase in Q3 royalty revenue to a record $114.4 million.
The company announces the acceleration of the remaining $250 million share repurchase into 2023.
GAAP diluted EPS stands at $0.61 and Non-GAAP diluted EPS at $0.75.
Halozyme maintains revenue guidance and raises 2023 EBITDA guidance to $430-$445 million and Non-GAAP EPS guidance to $2.70-$2.80.
On November 6, 2023, Halozyme Therapeutics Inc (NASDAQ:HALO) released its financial and operating results for the third quarter ended September 30, 2023. The company reported a 15% YoY increase in royalty revenue to a record $114.4 million. The company also announced the acceleration of the remaining $250 million under the current approved $750 million share repurchase plan into 2023.
Financial Highlights
Halozyme's Q3 revenue was $216.0 million, a 3% YoY increase driven by growth in ENHANZE revenue streams, an increase in royalty revenue, and an increase in product sales. The cost of sales was $54.8 million, compared to $47.3 million in Q3 2022. Operating income was $88.3 million, compared to $83.3 million in Q3 2022. Net income was $81.8 million, compared with $61.6 million in Q3 2022. EBITDA was $124.6 million, compared with $109.8 million in Q3 2022.
Share Repurchase and Partnerships
The company announced an acceleration of the remaining $250 million under the current approved $750 million share repurchase plan authorized in 2021. The company intends to execute the $250 million share repurchase by entering into an accelerated share repurchase (ASR) transaction with a financial institution, immediately, subject to market conditions.
In Q3, Halozyme entered into a global collaboration and non-exclusive license agreement with Acumen that provides Acumen access to ENHANZE technology for a single target. Acumen intends to explore the potential use of ENHANZE for ACU193, Acumens clinical stage monoclonal antibody candidate to target Amyloid-? Oligomers for the treatment of early Alzheimers disease.
2023 Financial Outlook
Halozyme is raising its EBITDA and non-GAAP EPS guidance ranges to reflect strong expense management. For the full year 2023, the company now expects total revenue of $825 million to $845 million, representing growth of 25% to 28% over 2022 total revenue. The company expects EBITDA of $430 million to $445 million, representing growth of >30% over 2022. Non-GAAP diluted earnings per share are expected to be $2.70 to $2.80, representing growth of 22% over 2022.
Explore the complete 8-K earnings release (here) from Halozyme Therapeutics Inc for further details.
This article first appeared on GuruFocus.
