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Jun 30, 2020

Halozyme Q2 2020 Earnings Report

Halozyme reported its first profitable quarter of expected sustainable profitability, driven by collaboration payments and FDA approvals for partnered drugs.

Key Takeaways

Halozyme reported a profitable second quarter with earnings per share of $0.19. The company saw revenue growth driven by collaboration payments and FDA approvals for partnered drugs. They are maintaining their financial outlook for the full year 2020.

Two FDA approvals and one EMA approval were received by partners for products utilizing Halozyme’s ENHANZE® technology.

Janssen received approvals in both the U.S. and the EU for the subcutaneous form of DARZALEX® utilizing ENHANZE®.

Roche received FDA approval for Phesgo™, a fixed-dose combination of Perjeta® and Herceptin®, utilizing ENHANZE® technology.

Halozyme delivered its first profitable quarter of expected sustainable profitability with earnings per share of $0.19.

Total Revenue
$55.2M
Previous year: $39.1M
+41.1%
EPS
$0.19
Previous year: -$0.1
-290.0%
Gross Profit
$597K
Previous year: $3.88M
-84.6%
Cash and Equivalents
$134M
Previous year: $67M
+99.3%
Free Cash Flow
$2.78M
Previous year: -$26.2M
-110.6%
Total Assets
$527M
Previous year: $418M
+26.1%

Halozyme

Halozyme

Halozyme Revenue by Segment

Forward Guidance

Halozyme maintains its financial outlook for the full year 2020.

Positive Outlook

  • Revenues of $230 million to $245 million, representing growth of 17% to 25%.
  • Earnings per share on a GAAP basis of $0.60 to $0.75.
  • Company remains committed to capital return.
  • Plans to repurchase an additional number of shares, up to an additional $96 million worth, during the remainder of 2020.
  • Growth driven by partner's development and commercialization efforts.

Challenges Ahead

  • Partners’ timelines may change as a result of future changes related to COVID-19.
  • Unexpected levels of revenues, expenditures and costs.
  • Inability to sustain profitability.
  • Unexpected delays in the execution of the Company's share repurchase program.
  • Unexpected results or delays in the growth of the Company’s ENHANZE® business.

Revenue & Expenses

Visualization of income flow from segment revenue to net income