Halozyme Therapeutics, a leader in subcutaneous drug delivery, faces patent cliffs for core products. To diversify, it acquired Elektrofi for $750 million, enhancing drug delivery options. Additionally, the $960 million acquisition of Antares Pharma expanded offerings to include at-home therapies. Partnerships with pharma giants have led to a 38% annualized sales growth rate.

Despite the recent 9% decline in shares, Halozyme remains a strong buy. Known for enabling subcutaneous drug delivery, its ENHANZE technology benefits over 1 million patients. With patents expiring in 2027 and 2029, the company’s strategic acquisitions of Elektrofi and Antares Pharma have bolstered its growth prospects.

Halozyme’s cash return on invested capital stands at 31%, showing efficient allocation of funds. Trading at just 14 times free cash flow, the company continues to diversify and innovate, positioning itself well for the patent cliffs it faces ahead. The market remains cautious due to impending patent expirations, but Halozyme’s strategic moves indicate resilience.

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