On November 6, 2023, Halozyme Therapeutics Inc (HALO, Financial) 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, Acumen’s clinical stage monoclonal antibody candidate to target Amyloid-β Oligomers for the treatment of early Alzheimer’s 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.