Halozyme EU Patent for ENHANZE to Boost Revenue Forecast for Darzalex SC

In June, Halozyme Therapeutics (NASDAQ: HALO) bolstered its market position with a new European patent for its ENHANZE drug delivery technology, securing intellectual property protection through March 6, 2029. This development has significant implications for the company’s revenue stream, particularly through its licensing agreement with Johnson & Johnson (NYSE: JNJ) for Darzalex SC, also known as Darzalex Faspro in the U.S., a treatment for multiple myeloma. Visible Alpha consensus estimates show Darzalex SC is estimated to account for approximately 39% of Halozyme’s total revenue in 2024.

Under the terms of the licensing agreement with Janssen, the pharmaceutical division of Johnson & Johnson, this new EU patent ensures that the royalty rate J&J pays for Darzalex SC sales in Europe will remain unchanged until the patent expires in 2029. This means Halozyme will continue to receive the same royalty rate from J&J throughout the patent’s duration. However, royalties from other ENHANZE partnerships will remain unaffected, as those agreements extend beyond the new patent’s expiration. Following the patent news, analysts have raised their revenue forecasts for Darzalex SC. Visible Alpha consensus revenue estimates for Darzalex SC now stand at $454 million in 2024, an 11% increase from the previous forecast of $385 million.