Halozyme Therapeutics (HALO) Fell Despite Reporting Strong Earnings and Improved Guidance

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global markets saw an incredible but volatile second quarter, shifting from deep declines to strong gains. In the quarter, its Investor Class fund ARTSX returned 7.30%, Advisor Class fund APDSX posted a return of 7.33%, and Institutional Class fund APHSX returned 7.36%, compared to a return of 11.97% for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its second-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as Halozyme Therapeutics, Inc. (NASDAQ:HALO). Based in San Diego, California, Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharmaceutical company that develops and commercializes proprietary enzymes and devices. The one-month return of Halozyme Therapeutics, Inc. (NASDAQ:HALO) was 24.41%, and its shares gained 15.54% of their value over the last 52 weeks. On August 22, 2025, Halozyme Therapeutics, Inc. (NASDAQ:HALO) stock closed at $71.82 per share, with a market capitalization of $8.4 billion.

Artisan Small Cap Fund stated the following regarding Halozyme Therapeutics, Inc. (NASDAQ:HALO) in its second quarter 2025 investor letter:

“Among the detractors in Q2 were Halozyme Therapeutics, Inc. (NASDAQ:HALO), Clearwater Analytics and Lattice Semiconductor. Halozyme provides a unique technology platform (ENHANZE®) that converts biologics and small molecule drugs administered intravenously into a subcutaneous formulation. The company reported strong earnings and raised its full-year guidance in May, but shares were negatively impacted by uncertainty surrounding new draft guidance from the Centers for Medicare and Medicaid Services (CMS) on drug pricing and potential delays in launching new products. We trimmed our position as we await final guidance from CMS.”

Is Halozyme Therapeutics, Inc. (HALO) the Unstoppable Growth Stock to Invest in Now?

An image of a research technician wearing lab coat with a syringe full of biopharmaceuticals.

Halozyme Therapeutics, Inc. (NASDAQ:HALO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Halozyme Therapeutics, Inc. (NASDAQ:HALO) at the end of the second quarter, which was 31 in the previous quarter. In the second quarter of 2025, Halozyme Therapeutics, Inc. (NASDAQ:HALO) reported total revenue of $326 million, representing a 41% increase over second quarter of prior year. While we acknowledge the risk and potential of Halozyme Therapeutics, Inc. (NASDAQ:HALO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Halozyme Therapeutics, Inc. (NASDAQ:HALO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Halozyme Therapeutics, Inc. (NASDAQ:HALO) and shared Meridian Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.