The Toll Booth on the Future of Medicine

Halozyme Therapeutics operates a capital-efficient royalty model based on its ENHANZE® drug delivery technology, which converts IV drugs to subcutaneous injections. This model generates high-margin (82% EBITDA) royalty revenue, which grew 52% to $868M in 2025. The company has a significant growth runway with four newly launched partner products (Opdivo, Ocrevus, RYBREVANT, ENTYVIO) representing a $30B market, which could add $350-500M in annual royalties. Recent acquisitions of Elektrofi and Surf Bio have expanded its technology portfolio to address drug concentration, creating a second royalty cycle and extending its IP protection well into the 2040s. The primary risk is the potential non-renewal of the DARZALEX contract post-2032.