Goldman Sachs has reiterated a Sell rating on Halozyme Therapeutics with a price target of $58.00, a figure notably beneath the stock’s prevailing market price of $72.83. The call follows Halozyme’s preliminary results for 2025 and the company’s multi-year guidance through 2028.
Halozyme gave revenue guidance of $1.71 billion to $1.81 billion for 2026, $1.92 billion to $2.05 billion for 2027, and $2.05 billion to $2.17 billion for 2028. Those ranges outperformed consensus analyst estimates and broadly aligned with Goldman Sachs’ internal projections, with the exception of 2028 where Goldman’s projection remains somewhat higher than Halozyme’s guidance.
The company has experienced a 31.19% increase in revenue over the trailing twelve months and is trading at a price-to-earnings ratio of 15.27. Management highlighted a strategy aimed at sustaining revenue durability through recent acquisitions and longer-term royalty streams.
Halozyme announced acquisitions of Hypercon (Elektrofi) and Surf Bio, both described as holding intellectual property with terms that extend into the mid-2040s. Management projected roughly $1 billion in Hypercon-enabled royalties by the mid-2030s, a trajectory management said would be supported by an expected 5-7 product launches between 2030 and 2035.
InvestingPro metrics cited alongside the company’s disclosures indicate a price/earnings-to-growth (PEG) ratio of 0.24 for Halozyme, a level that reflects a comparatively low P/E relative to projected near-term earnings growth. Halozyme’s internal projection calls for a compound annual growth rate of about 20% from 2025 through 2028.
Despite these positive near-term indicators, Goldman Sachs’ Sell rating hinges on expectations for a marked slowdown in royalty revenue after the 2025-2028 window. Goldman expects royalty revenue growth to decelerate to roughly 1% year-over-year in 2029 and then begin to decline in 2030 and later years. The firm noted this anticipated downturn would occur even if new partnerships are established, citing the approximately five-year interval typically required for new collaborations to reach the market. That timing issue, Goldman argues, would place the decline in royalty growth before newly acquired assets from Elektrofi and Surf Bio can contribute meaningfully to royalties.
Halozyme also disclosed several business developments alongside its guidance. The company finalized a global collaboration and exclusive license agreement with Takeda for the use of Halozyme’s ENHANZE drug delivery technology with vedolizumab, the marketed product ENTYVIO for ulcerative colitis and Crohn’s disease.
Separately, Halozyme entered a non-exclusive global collaboration with Skye Bioscience to pursue a subcutaneous formulation of nimacimab for the treatment of obesity. The partnership will leverage Halozyme’s ENHANZE technology to support evaluation of higher nimacimab doses.
On the regulatory front, the U.S. Food and Drug Administration has approved Halozyme’s RYBREVANT FASPRO, a subcutaneous therapy for EGFR-mutated non-small cell lung cancer, marking a regulatory milestone for the company’s subcutaneous product portfolio.
In corporate governance and compensation matters, Halozyme’s Compensation Committee approved a performance-based restricted stock unit grant for Chief Executive Officer Dr. Helen Torley. The award carries a target fair value of $10 million and vests based on the company’s stock price performance over a four-year period.
The juxtaposition of elevated near-term revenue guidance, intellectual property extending into the mid-2040s and newly announced collaborations with biopharma partners sits alongside Goldman Sachs’ caution about the durability of royalty streams past 2029. Investors must weigh the company’s recent operational and regulatory progress against the projected royalty revenue profile that underpins Goldman’s Sell recommendation.