For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Halozyme Therapeutics (HALO) ten years ago? It may not have been easy to hold on to HALO for all that time, but if you did, how much would your investment be worth today?
With that in mind, let's take a look at Halozyme Therapeutics' main business drivers.
San Diego, CA-based Halozyme Therapeutics is a biopharmaceutical company, focused on the development and commercialization of novel treatments for oncology indications by targeting tumor microenvironment. The company also licenses its novel drug delivery technology, ENHANZE, for subcutaneous (SC) administration of drugs.
The company’s ENHANZE drug delivery technology helps in developing SC formulation of drugs. Several companies including Roche, Takeda, J&J, AbbVie, Lilly, Bristol-Myers and others are using this technology for developing SC formulation of their currently marketed drugs.It also recognizes revenues from the sale of drug products to its collaboration partners for the development of drugs using its ENHANZE platform.
Halozyme now has eight marketed partnered drugs based on this technology.
Halozyme currently earn royalties on sales of various commercial products by its partners. The ENHANZE platform was developed based on the company’s patented recombinant human hyaluronidase enzyme (rHuPH20).
The company’s commercial portfolio of products include — Hylenex Recombinant and Xyosted, with the latter acquired from Antares Pharma in 2022.
Halozyme derives the majority of its revenues from royalties on sales of partnered drugs. The company generated total revenues of $829.3 million in 2023, up 26% year over year.
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Halozyme Therapeutics ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in December 2014 would be worth $6,007.51, or a 500.75% gain, as of December 16, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 202.20% and the price of gold increased 113.56% over the same time frame in comparison.
Analysts are anticipating more upside for HALO.
Halozyme's third-quarter earnings and revenues beat estimates. The company has collaboration deals related to its ENHANZE technology with several large pharma companies that generate milestone payments, driving the top line. Robust demand for the subcutaneous formulation of J&J’s Darzalex and Roche’s Phesgo is boosting royalties and the top line. The momentum is likely to continue. Halozyme is also focused on signing new collaboration deals to aid growth. However, blockbuster drugs like Herceptin and Rituxan that use ENHANZE technology have now started facing biosimilar competition, which is hurting revenues from royalties. High dependence on partners for revenues in the form of royalties and collaborative agreements is a woe. Any deal termination will be a major setback.
Shares have gained 5.15% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.