Halozyme Therapeutics HALO announced that it has entered into a global collaboration and license agreement with Incyte INCY to evaluate additional subcutaneous formulations of the latter’s INCA033989, a first-in-class mutant calreticulin (mutCALR)-targeted monoclonal antibody for a cancer indication.
With the partnership, the companies are looking to investigate additional subcutaneous formulations of Incyte’s INCA033989, utilizing Halozyme's proprietary ENHANZE drug delivery technology in patients with mutCALR-expressing myeloproliferative neoplasms (MPNs).
The companies aim to develop more convenient subcutaneous dosing regimens that could improve the treatment experience for patients with mutCALR-expressing MPNs.
The deal gives Incyte the rights to develop and commercialize Halozyme’s ENHANZE drug delivery technology with its mutCALR development program and an option to nominate up to two additional targets for use with ENHANZE.
Per the agreement, Halozyme will receive an undisclosed amount of upfront payment from Incyte as well as additional milestone payments upon the achievement of specified development, regulatory and commercial milestones. Halozyme is also eligible to receive royalties on future net sales if a product is commercialized from this partnership using ENHANZE.
HALO’s Price Performance
Year to date, shares of Halozyme have increased 14.6% compared with the industry’s rise of 3.2%.
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HALO’s ENHANZE Technology Aid Revenues
Halozyme’s ENHANZE drug delivery technology has been used in the development of subcutaneous formulations of various approved drugs through partnerships with large drugmakers. The company has several marketed partnered drugs based on this technology, including the subcutaneous formulation of J&J’s JNJ Darzalex and Roche’s RHHBY Phesgo.
Per the agreements, these companies have been granted worldwide license rights to develop and commercialize their products using ENHANZE technology. These deals generate royalties on sales of marketed drugs, milestone payments and annual license fees, which comprise Halozyme’s top line.
Halozyme’s top line also comprises product sales, royalty payments from Roche for Phesgo and J&J for subcutaneous Darzalex as well as revenues under collaboration agreements related to its ENHANZE technology.
Halozyme’s royalty revenues totaled $240.7 million in the first quarter of 2026, up 43% from the year-ago quarter’s level. This was mainly due to the robust demand for Phesgo, subcutaneous Darzalex and Vyvgart Hytrulo, on which it earns royalties.
Management expects royalty revenues to be in the range of $1.13-$1.17 billion in 2026, implying year-over-year growth of 30% to 35%.
HALO’s Zacks Rank
Halozyme currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).