Shares of No. 1 biotech stock Halozyme Therapeutics bounded higher Wednesday after the biotech company obliterated second-quarter expectations.
The company is well known for its Enhanze technology, which helps turn intravenous infusions into under-the-skin — or subcutaneous — shots. During the June quarter, sales edged roughly 5% higher to $231.4 million. That crushed analysts' call for $204.9 million, according to FactSet.
Adjusted earnings came in at 91 cents per share, surging 23% and beating forecasts for 74 cents.
Leerink Partners analyst David Risinger kept his market perform rating on Halozyme stock, but bumped his price target to 56 from 53.
"There was no change in tone from the first quarter to the second quarter on new deal prospects," he said in a report. "We hope to see Halozyme signing deals with large pharmas on validated assets with blockbuster potential."
On today's stock market, Halozyme stock popped 4.1% to 54.07.
Its stock leads the 730-company industry group of biotech stocks tracked by Investor's Business Daily. The group itself has had something of a renaissance recently and now ranks No. 21 out of 197 industry groups tracked. That's up from No. 57 a year ago.
No. 1 Biotech Stock Halozyme
Halozyme leverages its technology in deals with other biopharma companies. The company noted its sales growth benefited from a 12% year-over-year increase in royalty revenue.
Revenue from Roche-partnered breast cancer drug Phesgo, and Vyvgart Hytrulo, an Argenx treatment for an immune condition known as generalized myasthenia gravis, and the under-the-skin version of osteoporosis drug teriparatide helped drive growth.
The company reiterated the guidance it issued on June 6 for adjusted earnings of $3.65 to $4.05 a share and $935 million to $1.02 billion in sales. The midpoint of Halozyme's earnings outlook met forecasts, while the middle of the sales outlook slightly lagged expectations for $984 million.
Halozyme stock has a strong IBD Digital Composite Rating of 98, meaning the biotech stock ranks in the top 2% of all stocks, regardless of industry group, when it comes to fundamental and technical measures.
Shares also have a Relative Strength Rating of 94, putting their 12-month performance in the leading 6% of all stocks.
Ligand Invests In Royalty Deals
Ligand Pharma, which invests in royalty deals, reported adjusted earnings of $1.40 a share and $41.5 million in sales for its June quarter. Analysts expected a respective $1.06 and $33 million. Earnings fell by two pennies year over year, but sales climbed 57.5%.
For the year, Ligand affirmed its outlook for $140 million to $157 million in sales and adjusted earnings of $5 to $5.50 a share. In comparison, analysts predicted $4.93 earnings per share and $142.9 million in sales.
But, on Wednesday, Ligand stock toppled 5.8% to 93.32. Ligand ranks third in its industry group of biotech stocks.
Ligand stock has a Composite Rating of 93. The biotech stock also has a strong RS Rating of 96.
Both biotech stocks, Ligand and Halozyme, land on the IBD Tech Leaders list.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
